Stop Loss Alert for FAS

When the markets enter a correction, I carefully watch all my existing positions for signs of weakness.  In the past that meant selling in the money calls.  These days, I am more cautious and just opt to sell out of my position and wait for things to recover.

Today’s price action dropped FAS below my program’s trading stop, which will cause me to buy back the outstanding calls tomorrow and liquidate the underlying position.  Without the ability to sell naked calls, this is the safest option for me right now.

On the bright side, option expiration is this week.  So my $97 calls are trading for $0.05 and I would have bought them back anyway.  I’ll watch the market open tomorrow.  An up day might allow me to save a percent or two.

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About T. Knight
Blogging about my journey to financial independence via investing for cashflow.

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