To The Moon

$RKLB 20241115 4.0 CALL$ Brought these calls on Monday this week on margin because their total cost was $7.60 and the stock was trading at $7.68. I considered this a bargain. But today, Wednesday the stock jumped to $8.60. I normally don't buy short calls, too risky and I broke another rule, going short on borrowed money. 

But crap it paid off. USD$1000 ish invested turns into over $1300 in 3 days. That's a pretty good annual return. But why sell? Shouldn't I have kept this for a month longer to maybe make more? 

Kenny Roger's once said "no when to hold em, know when to fold em" now I know that this stock will hold at just over $8. For the same reason it held earlier this year at $4.02 or less. 

The price of these calls was too good to resist given that most others were trading at $9 plus. But it's the stock market, $8.60 for the stock today is a serious breakout. And thanks tiger trade for lending me the money. Not in a hurry to deploy such a risky strategy going forward, but this week presented an opportunity that I could not turn down.

My goal is to live off the income generated from trading. For me that means for a start I need NZ$1,000 per week, and too fully quit my day job NZ$2,000 per week. $1,500 would do but $2,000 enables me to invest $500 xtra every week. 

I also sold rocket lab stock this week and will excise a couple of options to buy it back at roughly $1 less than I sold it, but also realise $3 per share, the difference between the cost of the stock and the sales price.

So long story short I have achieved my goal of over NZ$1,000 this week, and this is now the third time I have done it in the last four months. But some weeks I have no opportunities so $0. To date the most call options I have at any one time is about 8. To realise my goal I need at least 20 calls.

Key takeaways then... set a goal, understand what you need to make that goal happen, implement that strategy, review and adjust as required, and ruthlessly implement it. It's actually not easy. Takes practice, knowledge, patience and determination. 

I hope this post provides some inspiration and some useful ideas fellow tigers, like if you like and please follow if you want to know more

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