With CPSL on the rise, I wrote an In the Money call for 1.20 with a strike price above my original purchase price. Not a bad move; I was able to capture some intrinsic value in the call, and some volatility.
I was still managing a basket of kittens by the freeway. Not really sure what to do with them. CPSL's momentum dropped, and there was no sustainability to the run up in price. So it went seeking alpha.
I bought to close my short call for .80, capturing a .40 profit. And immediately wrote another call, this time deep in the money. I'm not sure why I did this, but I did. Call it brain flatulence, I suppose.
You can make all the P&L graphs you want, but the real art of options trading is risk management, and managing open positions. You really can only get that through experience.
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