Don't Trust Market Value

I have been doing some more earnings trading.

I may have come into my stride and figured out these earnings straddles. The idea is that you purchase the straddle a week or two ahead of the earnings announcement and this gives the underlying stock more time to make a movement.

Right now I have Carmax (KMX), which has made a significant move so far.

The main purpose of this long awaited post is Don't Trust Market Value, always need to consider the Bid price in order to get out of any position. Market value is unrealized and when you sell under that assumption you lose thinking you have take some profit (happened so many times in the past).

Limit orders are the way to go, for getting in and out of trades.