How I Trade

Trade Rollout 2

The AAPL Rollout trade I made last week is set to expire tomorrow on Friday, March 22nd. To prevent taking a full loss tomorrow, I rolled out the trade today.

Edward Phelps

Mar 21, 2024 — 1 min read

The AAPL Rollout trade I made last week is set to expire tomorrow on Friday, March 22nd. The bet was that the price of Apple (AAPL) would be at or above $180 on March 22nd. As I write this post Apple shares are down at $171.30.

To prevent taking a full loss tomorrow, I rolled out the trade today. Here’s the Roll Trade:

Notice the option type changed from Weekly to Quarterly, and the expire date changed from Mar 22nd to Mar 28th.

This second Roll trade costs another $120 that comes out of any profit that may be made on the original trade. The key to remember is I have not lost money on the trade. That is the power of Rolling a trade.

The point of trading is to make more profitable trades than unprofitable trades over time. My plan now for this trade is to wait till Mar 27th and close the trade (even at a loss.) I’ll live to trade another day.

Note: I waited too long to roll out this trade. The sooner you see a trade going bad, take action. Waiting to roll a trade costs more, kills more profit, and can put your trade into a “how big will my loss be on this trade?” mode.

Your Trading Tools

There’s one tool that’s not on that list that I consider to be the most important trading tool...

Create A Trading System

This is the third issue in my “Get Started Trading” series. | A trading system is a set of rules you follow that help you see buy and sell signals in the market based upon technical indicators. My Trading System allows me to trade in a way that fits my chosen lifestyle and trading goals...

My Prediction Did Not Come True

I believed Nvidia (NVDA) would beat estimates by a lot when it reported earnings back on August 28th. It did beat estimates, but not by a lot. As a result the stock price has fallen. As I write this the stock closed at $119.24 in after hours trading on

You Need A Trading Mindset

This is the second issue in my “Get Started Trading” series. | After getting setup to trade, I think the most important thing a trader must have is a “Trading Mindset.” Why? Because the mindset needed for successful trading is not logical or intuitive...

Read more

Your Trading Tools

Create A Trading System

My Prediction Did Not Come True

You Need A Trading Mindset