$AAOI

AAOI's LEAP option is at a loss after the stock fell despite earlier gains, but he still holds it, says it is early with plenty of time, still likes AAOI and expects something good to happen; he is even excited it is down. He could have taken a profit after it ran from 33 to 50 but chose not to over-manage.

BullishHe framed it in years
“Yes, retiring is really this easy with option trading”
Invest with HenryPublished Oct 13 · 11 passages

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11 passages
12:0120:10

I purchased a LEAP option on Shopify. To be honest, I now regret buying three contracts a little because I bought three contracts on AAOI and I'll show you that LEAP option too , but I regret not investing more in Shopify.

Um let's go to AAOI. So, it went up a lot, but the stock actually went down, and my overall LEAP position is probably at a loss now, which is very disappointing.

You can see right here, I'm actually losing, and that's a really important lesson because I'm not only going to show you the wins, I'm also going to show you my losses so that you can be transparent.

I made a big investment. I made three deals on AAOI, and honestly, when you have 10 different positions and you've done your research, or trusted me, it's normal to have some losses.

And by the way, I still hold it. This is a very early stage. In the case of a LEAP option, it is still in its early stages. Let me go into my history. When did I open it? I opened it on September 30th.

So, that's what I thought. I was confused about AAOI and Shopify.

But yes, Shopify I opened on the first day of the challenge and then a little over a week after the AAOI challenge. And yes, I ended up with three deals. It would have been better if I had done it the other way around, but that's okay, it's all good.

So, what has happened so far? Let me actually go inside the option because you can see the chart of the option to see how its value has changed over time. So, let me go 1 month here because I bought this option on the 30th.

So, September 30th was right here. And very quickly, we saw a lot of gains, everyone was messaging me, "Henry, thank you so much." Isn't that right? But the truth is that we didn't make a profit.

We didn't make a profit, okay? Because I am not a day trader. I'm taking my time. This is a leap option. Could I have made a profit? I mean, it went from $33 to $58. Of course, I won't be able to catch the highest price, but going from 33 to 50 means a 50 percent profit.

Technically, I should have taken my profits, but I have a lot of time on my hands for AAOI. So, I think something good will still happen. But yes, I am at a loss in this position.

It was good to take profits as the stock had gone up a lot and my leap option had made a 50% profit in a week or two, but at the same time, I didn't want to over-manage or over-trade.

Yes, I could take a more active strategy, but if I were just thinking about retirement, I would pick 10 great stocks and hold the leap options. Because the truth is, what if I had withdrawn money from AAOI while it was at its peak?

I don't want to try to control the market because I still like AAOI. This is a stock I still like. So, if I were selling there, yes theoretically, if I could tell the future or know about the past, then I would sell there. But I can't do that.

AAOI also had a lot of profit, then it decreased, that's okay too.

When I look at AAOI and see that it's down, that's great. I am really excited about it.

What this channel has said about $AAOI

Invest with Henry has 3 calls on this stock; only the adjacent ones are shown.

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