Lets follow up to see how $GFI did since I shared my bullish view.
A query we have to answer now is how to manage the position if you took a bullish position based on the original analysis?
If you used CUE Vital in real time right now, you will see that though $GFI is up by more than 3%, most of the peer stocks are down. That shows the accurate selection of $GFI instead of another gold mining stock in my original CUE analysis.
What about $GLD, the commodity? It recovered in a downtrend from a Memory trendline and is down today with a bear Release signal. Yesterday $GLD displayed a barish Indecision at the top. Relative Performance shows $GLD is underperforming the market.
The broad market as of now is mixed. $RTY is down considerably wheresa others are up. The market is indecisive - the same view that I tweeted over the last weekend.
With the above insights in real time and with the fact that the short put position had more than 35% profit, one may decide to manage the position and not just leave the position on to hit the initial target of 50% of initial profit.
One way could be to book partial position profit. Other could be to not let the trade go into loss from now onward.
My approach is always try to take some money off the table when I have some indesicivenes about the stock/stock peers/commodity related to the stock/broad market. I did the same in this case too. From now, the trade as a whole is guaranteed risk free.
How would you approach the trade management in such a case?
