USG Corp
Option Trade Blog

Stock: USG Corp

Symbol: USG

Option Symbol: USOPQ

Reason for Initiation: Uptrending, up by about 170-200 %in 1 year. Forming a base over 4 weeks.

Action: Short Put (equivalent to long stock)

Details: Put: Strike @85, expiration Apr, Sell to open position on 6th Mar 06. Buy to close on 8th Mar 06.

Result: -ve

Reason for Closing: Cutloss.

Comment:

* Trade initiated without a fractal buy.
* The base doesn't look convincing enough on hindsight.
* Broader market was coming down.
* Conclusion: Initiation: not good, initiate without fractal buy. Close: Did the right thing to cutloss.
* Action Plan: Make sure only initiate trades on fractal buy for future trades and watch out for more reliable base.

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