Updating on 3/22
AMC is one of the meme stocks that I’ve wanted to avoid, but I need to put my feelings of jealousy? I guess? Aside, not buy into the hype, and still make myself available to take advantage of the less-informed but “Apes stick together” moves.
That’s not something I did with this trade per se, but it’s something I need to think about and keep in mind going forward. There’s a lot of volume with those moves, and I’m already one to just grab what I can from more confirmed moves, rather than trying to guess tops and bottoms, so my style should match up with that. It’s just an emotional thing, now, that causes me to want to do things outside of the “Masses”.
Underlying Price – $15.10
Underlying Target – $13.00
Strike Price – $16.00
Premium – $2.98
Entry – $2.96
Here are the exact things I thought about when entering this trade, copy and pasted:
AMC came up on my watchlist this morning as it was pushing up, quite a bit. Looking at the hourly chart, though, it looked a bit extended at the open, pushed slightly above the upper Bollinger band, and has been pushing down for the last couple of hours. RSI isn’t quite in overbought levels, yet, but with the upper band being breached and this overall downtrend, it looked like it had some weakness in it’s future to me. I ran the numbers, to make sure I could get in for a price that doesn’t take out my break even level, and everything looked good, so I entered an entry order that was filled immediately.
Exit – $1.99
I exited this trade on Monday, after entering an order to get me out at the market if the underlying hit $16, which it did. As of now it’s up to over $18, so that’s good. I didn’t let my emotions around thinking it was dropping to keep me in the trade. I saw a strong resistance level, called it my pain point and got out. Another trade where I feel as though I did most things right and it just happened to be a loser. It’s a good thing. The winner, the HUGE winner, is coming.