- Bought the RKT 19MAR21 20 call options on Dec 30 and Jan 20 for an average cost of $2.51.
- Sold the calls on Jan 25 at $4.60 for a gain of 83.27% on the trade.
- 6% portfolio allocation.
I initially bought the RKT calls on Dec 30 on what appeared to be a bullish breakout above the $21.00 level - turned out to be a false signal - I then added to the calls on Jan 20 when the shares held at the $19.50 support level and the momentum bars were moving higher, pointing to a bullish turn.
Sold the calls on Jan 25 when the shares spiked up 18% to $24.00 on a drop in interest rates which sparked a short-covering rally on the stock - in this case, patience was rewarded.
The Options Trader is a great forum for investors interested in generating over-sized returns over short time periods trading leveraged options. Click here to start a Free Trial.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.