An email from an investor regarding his position in Lowes Stock following the drop on Tuesday Aug 15 touches upon understanding support levels and your comfort zone which comes back to understanding your original goal when the trade was placed.
Let’s review his question and look at some answers.
Investor Questions
On the recent LOW trade, with the stock dropping $3.42 today (Aug 15) , this has closed well below the $75 put strike. The Aug 18th 75 Put strike I entered at .32 is now at 1.09/ 1.25 and earnings are out on Aug 23. The Sept 1 72 strike is at 1.23/ 1.36. Is this a good approach for tomorrow to roll out to the Sept 1st or should I wait till Thurs or Fri to roll this option. I hate holding these thru earnings but I don’t like the alternative.
Joel
This article reviews Joel’s questions and looks at the importance of understanding stock support levels and how investors react around support levels. It also touches upon the subjects of understanding your comfort zone and your original goal when investing.
This strategy discussion article is for FullyInformed Members.
Investor Questions – Lowes Stock (LOW) – Understanding Support Levels and Your Comfort Zone – Aug 17 2017
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.