Forum
Trade for the week of 11/17/2023
This week we still own 100 shares of WW, and the stock has really fallen. It looks like we picked a losing stock. We do have some options open to us.
1) We sale the stock and take the loss and hope we can do better in the future. The problem is that we are worse off than when we started trading. We bought the stock at $8.50, and the current price is $6.44 that's a $206 loss. It would complexly wipe out all of our gains.
2) We perform a complicated trade that we call the Lazarus option. We would do 3 trades which would result in a lower strike and might help get us out of owning this stock. Might. Also, we would be locking ourselves into a long-term (1-2 years) commitment to the stock. If it continues to go down, we would be in more trouble.
3) We continue with CALLs that become slightly riskier as we attempt to continue to turn a profit.
What would you do? Write your thought in the Forum.
For the purpose of education, we are going with option 3 to show that we can still make profits every week. We think the stock will turn, when the market does. However, this week in order to make a profit, we will need to do a strike BELOW our purchase of $8.50.
| Stock | Call/Put | Expiration Date | Contracts | Strike | Premium | Cashflow | Percent |
| WW | Call | 11/17/2023 | 1 | $ 7.50 | $ 0.05 | $ 5.00 | 67% |
Total cash flow so far: $112
And our expected yield for the year: 27%
New to trading with us? Here is our PUT pick for this week:
| Stock | Call/Put | Expiration Date | Contracts | Strike | Premium | Cashflow | Percent |
| VFS | Put | 11/17/2023 | 1 | $ 4.50 | $ 0.03 | $ 3.00 | 66% |
