It has been a few more days since my last post, so I think it is only fair to provide an update. I will cover the status of my portfolio and my planned actions. Here we go.
My position in NG is officially ITM for the lucky person that bought the Call Option I sold a couple months ago. Will it be assigned? I believe so, but crazy things happen everyday. I'll keep you informed.
My Call option on SLV stopped out and the underlying stock is pointing down, but I believe it will rebound in a short while. I may purchase a different option on the same stock when that time comes. I will keep you in formed.
Second to last thing, I put an order in for Call options on T. That order never got filled because the stock gaped higher than I anticipated and my broker cancelled the trade because the gap put my order on the wrong side of the trade. That is okay, because the stock also pulled all the way back and has since been bouncing around 25.50 and 25.99. This also happens to be at the lower trend line of a trading channel it has been in for a couple months. I have seen this consolidation type behavior before. It will usually breaks out to the up side. For those reasons, I have been re-submitting the order for the past few days, and I have once again set up an order to take place this coming Monday.
Lastly, I decided to try my strategy on TLT. Two days ago it put in a hammer candlestick. A hammer usually indicates a reversal in the stock price direction, which was going down. The Stochastic and MACD also indicate an oversold condition. So I had confidence to believe that a bull reversal was eminent. For those reasons I put in an order to buy the Call option on it. Unfortunately, the order also did not get filled, but the stock did proceed to go up, confirming my analysis that a change in price direction was indicated. I have also put in an order to buy a Call option on it if it continues to rise.
As a quick note, I had been setting my option orders as contingent orders that depended on the stock making it to a calculated stock price before being submitted. I think this might have been an overly cautious on my part. So for the last few orders on T and TLT, I have just been setting them as stop-limit orders at the same values that my calculations have been giving me. As I have explained, the orders still didn't get filled. So I will probably not using contingent orders for my option trades in the foreseeable future. That is my opinion, you can take it or leave it.
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