Trading is tricky. If it weren’t, it wouldn’t be so difficult to extract wealth from the...
Up $30K on a $6K Account
10/13/2020 10:00 am EST
Let’s dive into a trade I currently have open. I haven’t closed this trade yet but it's already doing so well profit wise, I wanted to highlight it says Danielle Shay of Simpler Trading.
So, let’s talk about Microsoft, and why I decided to trade it…
I entered Microsoft (MSFT) on Friday because of the Turbo VZO and Trend Strength Candles first and foremost. Plus, there was a run into earnings and a squeeze.
I decided to get into it right when Microsoft breached above the 50-period SMA on the daily chart. And as I said before this is also one that had the “magic combo” that I’ve been trading lately.
What’s It Mean to Have the “Magic Combo”?
If there’s a “magic combo” present on a trade, I know I should put a lot of size into the trade. That paid off here especially because as of the start of the week, it’s gone from about $210 to $220 in less than a day and a half. On this one I decided to go just a little bit bigger as I said. So, I went ahead and got 6 long calls, 2 delta 70s, and 2 delta 50s.
As you can see, the delta 70s were trading at $7.72, and now they're trading at $16 apiece. As for the delta 50s, they were trading at $3.60, and now they’re trading at $9.75 apiece. So basically, the delta 70s are up more than double and the delta 50s are about at triple.
So far, I’ve made $4,000 on Microsoft overall and the trade’s not even over yet.
In the grand scheme of profits, that means I’ve made about $30,000 on a $6,000 account now. That’s up from the last time I wrote about this account. So, we’re rounding out to a 6X account gain with this trade in the books.
All thanks to a setup backed with a “magic combo” (which comes down to knowing when to go big).
To learn more about Danielle Shay, visit SimplerTrading.com.
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