I want to talk about standing firm on limit orders today.
music selection: “Spoonman” — Soundgarden
I have a small speculative position in Seabridge Gold (SA). It is a small mining exploration company with promising drilling results. I have 362 shares at a cost basis of 4.60. Shares currently trade for 13.95 (I’ve done quite well.) I hatched a plan earlier this week that I’d be willing to pick up 300 more shares at 9 dollars a piece if I could earn 12% annualized on the puts. I tried three times to sell SA160520P00009000 for an acceptable premium.
My limit orders never filled. They were a few pennies off the bid but I stood firm, unwilling to fall below my 12% target. A lizard with an itchy trigger finger (I was that lizard in the past) would have given up yield or tried a higher strike with less downside protection. I’m here to say, “Don’t do it raptors!” Stick to your guns. Patience while stalking prey is the Raptor Way. There are always a lot of attractive trades available in the market. Take or good one. Or none at all.
Devour your prey raptors!