PCU is one of my candidates yesterday. It break through its yesterday lows at the early session and bounce back quickly after an hour congestion.
I bought a PCU April 115 PUT@3.10 and magically the stock plummeted in the next 10 minutes by 2-3 dollars. It would be a fantastic profit if i choose to get out at that point(options price went up to 3.70, a 19% returns in just 10 minutes) . But i did not take it.
I thought that it would go down further and want to take a ride there but fortunately as a discipline trader, i practice what a professional trader should do. I place a stop loss order at 3.45 to protect my capital and preserve some of my gains.
It get triggered when i switch off my computer about 10 minutes later.
Profit 3.45-3.10= 0.35.
Returns 0.35/3.10=11.29% in 20 minutes without monitoring the screen at all time.
I gave up the 8% returns to lets the winner run BUT I PROTECT my downside and this did work for me at this case.
If not, i would have a big loss here.
The stock after all, climbed up about 2 dollars and remain at the opening level for the whole night. The last transaction option price was 2.60. Which is a 0.85 loss, 24.63% loss in one night.
I am glad that i get out before hand.
*Always protect your downside.
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