Here is another classic example of how patience pays off. Sometimes as traders we get too distracted or super focused on the day to day activity, rather than looking at the bigger picture. PCAR was a case study from about 3 weeks ago that didn't start off as a huge mover, but was absolutely money in the context of the "trend trade" as it was intended.

Some might have exited this trade for lack of time available until expiration. This is another example of why I don't ever want traders buying options with one month or less expiry. What a shot in the foot to settle for such a horrible option. You can have the stock pegged, the market trend in your favor, etc but this option just sheds time value faster than it gains intrinsic. Please don't waste your time with these, unless you are a day trader...then again that trader wouldn't have traded this stock.

Take a look at that chart once more and zoom away from the daily candlesticks, and watch the wave-like movements as the stock trends higher. In context of this trend, every movement was normal and expected. The option selection process can generate emotion that effects your patience in this trade, so make sure you pick the right option for your strategy. If you have a trending stock, get some time, and a hobby to take your mind off of the day-to-day movements. If you have a swing trade, you can select a more aggressive option and fall back on a time stop.

Anyhow, after a little patience...congrats on the new 52-week high.






Recommendation: Choose your options wisely.

Long: PCAR

Short: Patience