I just sold my PAGS Calls for a nice profit.
I’ve been in Pagseguro Digital (PAGS) since 11/11/19. I bought 20 contracts of the 1/15/21 $35 Call. Yes, this position had a long time to go until expiration but I had a nice profit so I decided to get out and put the money to work elsewhere.
When I bought the Calls the stock was at $33.15 and today it’s $37, $2 In-the-Money. It’s $2 In-the-Money but I paid $7.26 for the Call. If there’s a pullback it could be down to my Strike Price fast. If that happened the stock would have to go up the $7.26 I paid for the Call before expiration. This is why I like long term options. You have plenty of time to make decisions before Time Decay kills you. Time Decay and Time Value are so important to understand. I might be a little quick with my trigger finger but I made a profit! Now I move on! Please, if you’re gonna buy options, especially short term options, understand 80% expire worthless. This happens because options are cheap and they attract less experienced traders with less money who are looking for a “get rich quick” scheme. Don’t fall into the trap. Do your homework and understand Time Decay and Time Value.
11/11/19 – Buy to Open 20 PAGS 1/15/21 $35.00 C @ $7.26 ($14,520)
1/14/20 – Sell to Close 20 PAGS 1/15/21 $35.00 C @ $8.20 ($16,400)
Profit +$1880
I believe to maximize your profit you must manage your positions. The S&P is up 26% the past year. I was up 101%. This is managing positions. This doesn’t mean you have to be at your computer all day, every day. If you don’t have time to trade every day check out my Wealth Builder section. You may not maximize but you can do very well investing while you work. Possibly match the S&P.
Successful trading,
Steve
The Options Coach