Hey traders, coach Emily here with another edition of Women In Trading. I know a lot of you can relate when I say that when it comes to being up to date with what is happening in the markets tackle is the place to be. If Tackle were like an airline tracking our views, the frequent viewer hours for some of us would be off the charts. LOL No matter how many hours you dedicate to your trading business you are very much aware that its earnings season and our fearless leaders are doing a great job of keeping us informed on all things earnings during the live halftime report on YouTube at 12:30est each day and of course throughout the other shows, blogs and reports. Therefore, I will not spend too much time repeating what has and will continue to be discussed in the weeks to come however, I will give you a quick tale about an earnings trade on Boeing and how it almost cost me, my friends.
This story involves two other traders that either you met at a Legacy training or you have heard the coaches rave about them and they are Marques Johnson and Jake Larmour. A quick back-story on how we are all connected before I give the details of why BA had me giving these fellas the side eye. We are all from the DMV (DC, Maryland, Virginia) area and like many of you, we were introduced to the world of trading by attending a basic training workshop. Matt happened to be the speaker at the workshop we each attended. Eventually, all three of us met because we would always drop by to say hello to Matt whenever he was back in the area to teach another workshop. Long story short we developed a friendship all for the sake of having someone else to talk to about trading. Over time, we have gone from traders sharing ideas, to even having friendly wagers on who would have a better ROI in a given month. This past year we developed yet another relationship. We are now a work-family since all three of us are on the road now spreading the good word of the financial markets. It is not often that we are on the same team when we are on the road so you can imagine just how elated all three of us were when we found that we would be teaching in Denver together. I was so happy we even took a selfie to commemorate this moment. Look at how happy we were. The calm before the storm one would say. LOL
It goes without saying that we talked and caught each other up on things home and family related and about the trades were in and how they were going. Throughout we talked about earnings and what we had in mind in terms of covered call stocks we were willing to hold through earnings and the hedging techniques and of course any companies we were looking to trade as an earnings play. The three of us truly are the product of the people we have surrounded ourselves with, and we have been around Matt and Tim long enough that our daily routine is quite similar in nature; Come up with an idea, decide on a strategy, research candidates, make a decision and place the trade. Marques walked by my computer while I was working my daily routine, which had the heat map page on. The heat map was lit up with pink or magenta colors and without me saying a word, he instantly knew I was looking the earnings dates. He says, “I’m thinking an Iron Condor on BA. It has earnings next week but I haven’t run the numbers yet”, and continued to walk on by. One of the reasons I love trading so much is that we can share ideas and it does not affect the other persons’ business if you decide to copy what the person is doing. On I went to TOS to run the numbers on BA and see if would fit the iron condor criteria. I looked at the chart so see past behavior on BA to come up with the average movement on earnings. Being that BA did not have huge gaps during past earnings, it fit the short strangle/ iron condor criteria. After looking at a couple of strike prices I found the one that gave us the better cushion and cash flow. Next step, looked at the risk graph and set the slices to the chart for the final analysis, and boom the final answer was Sept 405/410/305/295 for a $1.24 credit. I brought Marques in to as a second pair of eyes, we discussed and decided the numbers were good. I took a screenshot of the risk graph and sent a text to my good friends Marques and Jake.
They wasted no time whatsoever placing their trades now we were all waiting to have our orders filled. If you have traded multiple legs on options, you know it takes time to get a fill sometimes. The day went on yet my order had not filled but when I looked at the clock, there was a couple of hours left before the market closed so I had enough time to adjust the trade if need be. Well, that was true if I was on east coast time but we were in Denver which is central time so when I was looking at my phone and the time was 2 pm it did not occur to me that it was actually 4 pm and the market was now closed. Did I also mention it was Friday? Anyway, I finally realized that I was lost in time and if my order didn’t fill the fellas probably didn’t get filled either but it was no biggie earnings was on Wed so we still had Monday to place the trade. Later in the evening as we are walking from having dinner, it comes to my attention that the only person whose order didn’t fill was mine. Turns out the boyz adjusted their trades and got filled because clearly they knew which time zone we were in yet I missed the train on BA? By this time, these two jokers think it’s quite funny being that I was the one that ran the numbers and send it to them yet they got filled and I didn’t. I’m screaming and punching them as we are walking back to the hotel and I’m swearing to them that if I don’t get a good fill come Monday they will never hear the end of this which just made them laugh at my pain even more. It was so amusing to them that this story continued throughout the weekend. On Monday, I send them a text from with a ton of angry face emojis demanding $12 from each of them. I got filled at a $1.00($100) credit and since they got $124 on Friday, it was only fair that they each give me $12. Well, all I got back were a bunch of LOLs laughing emojis.
Now of course I love these guys dearly and I obviously did not lose my friends over $12. I just wanted to remind you that trading is supposed to be fun and having friends who are also your trading buddies really does make a big difference. This will go down as one of those “remember when” stories that we will talk about for a years to come but most importantly, that trade on BA paid out well so I can’t be that mad at them and I’m just glad that this was not one of those months we had a wager on. We moved past BA and already have our candidates for this week so we’ll see how they pan out. X, APPL and RIG just to name a few.
Until next time Tackle Traders this your I don’t know my time zone coach Em signing off.
You can follow daily trade adjustments and updates on Twitter, Facebook, or text “follow @tackletrading” to 40404 to get text alerts!
If you are not a Pro Member and following the Stock & Option Picks, then check it out! There is a Promo code for Free 15 day trial: THETA
- Emily Muiruri, an Entrepreneur, Real Estate Agent and Business owner. Born and raised in Nairobi, Kenya before her family moved and settled in Maryland. She began her trading journey in January 2015 after 17 years of Property Management in the Self-Storage Industry. Emily uses different strategies to trades stocks, options and forex. Although still a student learning and enhancing her trading skills, she has strong desire to teach women to take control of their finances and become traders. Writing blogs is one of the ways she’s is looking to spread the word and get more women involved. Emily knows that with the right education and trading system women can be successful traders
– – – – – –
Tackle Trading LLC is providing this site and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and may not represent specific trades or transactions that we have conducted. In fact, we may use examples that are different or the opposite of transactions we have conducted or positions we hold. This site and any information or training therein is also not intended as a solicitation for any future relationship, business or otherwise between the members or participants and the moderators. No express or implied warranties are being made with respect to these services and products.
All investing and trading in the securities market involves risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments, is a personal decision that should only be made after thorough research, including a personal risk and financial assessment, and the engagement of professional assistance to the extend you believe necessary.