My favorite part of trading options is the physiological warfare that goes on during a trade. People say that short term options are straight gambling but I say they are just regular gambling. Because there are things that move the stock. Things that you have the opportunity to play. Of course it doesn’t always work out, but like domain investing, it only takes a few wins to pay for all the bad ones. And some times those wins are big. I like options trading better than day trading bitcoin. Bitcoin has no rhyme or reason. It trades on nothing. With options I can at least pretend I have a plan.
The China/US trade war deeply effects the stocks of certain companies. One is Alibaba (BABA). I had a plan. If the stock had good earnings I would jump in on some short term options that ended Friday and ride the earnings up as the stock prepared for Singles Day, their biggest shopping day of the year. If any positive trade war news came out then it would be a bonus. So Alibaba also seems to trade in a pattern. Up big at opening, settle back and then build back. The earnings were announced and they were good so I new my entry was coming. So I waited for the expected big bump and the settle. It came, and I bought some in the money 180 calls at $2.55
This is where I struggle. I have been very good at picking my entries into my options. In an almost impossible run, I have not lost money on one options trade in 2019 but I have left 10s of thousands on the table by not letting them run. But with this one the expiry is today. So there isn’t any time to make up if it goes south. Yesterday the perfect scenario came about. The stock market was up again for the second day in a row and news came out that some tariffs would be removed in the near future. Alibaba moved heavy early, retraced as normal, and then started running. To the point my trade was up 3 times my money. A few thousand dollars profit. Here’s where I get into trouble. I think about what that profit could buy. A new laptop. A vacation. Good Christmas Gifts. All guaranteed if I get out now. Or I could let it run to where I think its going and make even more. And I did what I always do and sell with a good profit. I take the money out, transfer it to my bank account and go to https://www.irs.gov/payments/direct-pay and pay the taxes immediately so it’s covered.
So what’s wrong with making a good profit? After trading regularly and for a living I still struggle with when to get out. I have always known the rule “let the winners run, and cut the losers early” but I waste so much time checking the stock price, thinking about the right exit, that I can’t get anything else done. I get fully invested. My last trade I got out with a 400% return but if I would have kept it I would be a 10X my money. Something most people would say I shouldn’t be upset with but I know better but I can’t just let it go. On the last one its even worse. Because the money in the trading account is all profit. I took out the original money long ago and even if the this went to zero it would be a heck of a year. But no, it gets to 7.50 and I’m out. I’m not leaving much on the table this time because it expires today but yet I still check the price to see how I WOULD HAVE done. Which serves zero purpose. I write this because I know there are others. Most people can’t even take the first 5 minutes of holding options because of the swings. I have that down. I am just terrible at fully taking advantage of what seems to be some good stock analysis because I am not patient. Its translated in domains. When I make a great profit I move on. When in reality if I showed a little more patience I get more. I am getting better but not there yet. It’s something I hope to improve and I have. But I’m not there yet and my trading this week proved it
Quote of the Day: “You must allow the pain to visit. You must allow it to teach you. You must not allow it to overstay.” – Ijeoma Umebinyuo
Domain of the Day: Keeto.com Misspelling of Keto but still a great name
Godaddy Domains With Bids
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NorthernCyprus.com Top number of bids on the Godaddy list today
205.me Remember when these used to be $500 plus?
7020.cc This would have fetched the same price
ChainFinancial.com “Trust and speed built on the block”
Finri.com Fin tech…..maybe
GRPN.com Great letters, N for Network
LegalWise.com The next LegalZoom is what the bidders are thinking
NebraskaRadioNetwork.com At four figures for the history. These kinds of names always puzzle me. Could someone explain how someone profits off this name?
SuperWire.com Send money or metal string
StressPrevention.com Stress is a KILLER. Prevention as they say, is the key
WellnessResorts.com Speaking of stress. Wellness is the new buzzword. As evidenced by the price. All about Health and Wellness isn’t it boomer?
JustWriteAbook.com Mr. Levine. Does this have any value?
TruckCandy.com People sure love their trucks. aka TruckPorn
Registera.com If Uniregistry works so does Registera
MattressHero.com I am always amazed how many mattress shops there are in town and now online
CleanCharge.com Here’s the name of your new ChargeStation. Of course the money will be made in the convenient store of your charge station
Godaddy Domains With One Or No Bids
The Rest of the Godaddy Names With Bids
Have a name at auction and need more exposure? Send me an email. We Charge $10 per name per day. We may be able to help. If you have an auction you want to promote, email us for details.*All names chosen by us, Shane and Josh . (ie you click through and purchase a name you like) or an occasional paid listing. Everything we say is based on our own research or is opinion. Do your own due diligence. That means look it up yourself if you don’t think the stats or our opinion is correct. We hand choose the names but we are paid to make this list by both the auction houses, individuals that are auctioning names, and Godaddy affiliate links. Keep that in mind and only buy names that YOU think are good.