I was active in pre-market action today as I initiated a partial new long stock trade in $NUS & $BBY:
My thought here was simple: protect the capital and switch to an Options only position. Risk defined, reward potential known, a few pennies in the bank. Now comes the next step where I use a less traditional exit by selling the long calls only (hit a Stop that I had defined):
I felt a second down leg was quite possible so I wanted to leave myself room to work the short Calls for that purpose. I had intended on selling a Put Spread & use the proceeds to cap the short Calls above. Never got to that step though. Little did I know that the stock would get halted and when opened, price moved down a LOT more. This is what I did next:
Since the stock re-opened and sunk below the $70 level I elected to spend some of the available cushion ($15.11) and create a Call Spread. I now own the February 80/95 Call Spread and can let the position ride. A $7.11 gain is booked already.
This is what the Daily chart looks like for $NUS: