Big day for Culture Supply Investment’s own Wolf of Robinhood! I made very weird swing calls on American Airlines (AAL), but I must say I’m very happy with the outcome because I didn’t know if the AAL share price was going to rise again after dumping more money into the call to average down. First, you can see I initially bought the $18 call at $0.66×5=$330
Suddenly, just before 10 AM EST the price was at a sharp drop so I doubled down in contracts at $0.45×5=$225. Putting me at a grand total of 10 contracts.
As you might have probably assumed, the contract price of the call dropped so I bought in again but only $0.36×2=$72 to average down even further.
This is where things got GOOD! I decided not to use a trade and swing the call for next day. In my opinion I couldn’t have made a better decision because the next morning the calls contract price shot up to $0.93, but was only able to get my “sell call” filled at $0.88 which was still a good chunk of change for me. Whenever I make more from a trade than what I initially spent I consider that a big win. Good luck in trading!