CPSS is breaking out!

Gator2_01 said:

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I purchased an entire $2400 worth of SUN which I'll be selling a mind bending 1 covered call against!

I've also done well with long term KMI options and selling monthlies against them when it pops above $22.

Just a regular thousandaire hustling!

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This made me chuckle. I have yet to employ the covered call strategy on my one current holding, of which the max I could sell is 3 covered calls based on the # of shares I own. If I wanted to remain moderately risk averse while selling calls it would net me < $100 in total premiums.

PBI wave back up towards resistance. Just a matter of time, although the wave action is easy $ while waiting.

Comanche_Ag said:

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51M shares short. A little squeeze action to $20 sound about right?

These are the kind of charts I clean house on. We had seen the support below $14.30 so I load the boat last trip below it. Then it predictably moved back on the channel to retest $15.35. So today I unloaded all of those last purchases lowering my net holdings cost by $0.65 cents. If we wave back down I do it all over again with the safety of that $0.65 cents cushion protecting me should the stock lose the support. I could have sold the $15 covered calls into the close but since I had loaded up additional shares I prefer to leave all long holdings untouched.

When people ask me about learning how to trade I would point them to this chart and ask if they had the intestinal fortitude to be a buyer at $14.30 with a stop at $14 no questions asked, based on this one factor. If they say they would be nervous or be reluctant to "pull the trigger" then they aren't cut out to trade. No harm no foul - it's not for everyone, but sitting on 68% annualized return for the year is not something to be dismissed offhand.

Chart edited for $15.35 resistance - doh!

In on PBI - thanks, oldarmy!

oldarmy1 - talk to us about trading the VIX. It is back down near 11. I have ready anything under 14 is a good place to be. Can you buy it direct as VIX or do you have to by an ETF that mirrors the VIX? Does it get eroded with decay?

Ragoo said:

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oldarmy1 - talk to us about trading the VIX. It is back down near 11. I have ready anything under 14 is a good place to be. Can you buy it direct as VIX or do you have to by an ETF that mirrors the VIX? Does it get eroded with decay?

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It erodes but as long as you get any move within a 5 day window you are in good shape. Realize that we are in a squeeze channel on the major markets so this quieter stair-stepping could go on for a while sending the VIX back into mid 10's. That's your risk. I use the VIX mainly as a weekend hedge or when a major FED announcement is 3 or so days away.

ATW continues to rock out with some short squeeze action. You will want to sell and/or apply a covered call strategy into the buying because once it loses the short volume it will go through a consolidation period.

TWTR is up over 5% today.

Healthcare/Biotech is definitely not following the trend of the last month. I have to think this is an overreaction to Trump's policies. This industry is so broad, powerful, and growing. I believe there is money to be made here.

Should have bought back my $19 12/16 covered calls yesterday for $.30 and sold into this strength at a higher strike.

Like all good traders say, you must manage winners AND losers!

Shorted pharmacueticals ACHC, ARIA

Something must be soon to come out on Obamacare change.

ACHC drop is likely related to the free-fall of UHS because of the Buzzfeed story on their fraudulent practices.

Link

Quote:

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Lock them in. Bill their insurer. Kick them out. How scores of employees and patients say America's largest psychiatric chain turns patients into profits.

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Comanche_Ag said:

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ACHC drop is likely related to the free-fall of UHS because of the Buzzfeed story on their fraudulent practices.

Link

Quote:

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Lock them in. Bill their insurer. Kick them out. How scores of employees and patients say America's largest psychiatric chain turns patients into profits.

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Caught that and Trump made a statement about needing to lower prices. Likely all of this only creates a buying opportunity versus a trend.

ACHC up $1.48. Yup, buying opportunity. That recovery usually is followed by a breakout upward fyi.

oldarmy1 said:

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aggiehunter3 said:

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oldarmy1 said:

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CIE trying the breakout again. $1.38 x $1.41

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That $1.40 area resistance is no joke...SDRL is playing nice after the 200 SMA break

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Appreciate the breakout alert on SDRL

Also, notice how $1.35 became support intraday thus far on CIE. That is called a signal load up move.

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Do you think this morning wash out on CIE is an overreaction to the 8-k?

CIE down 13%.

DDSO said:

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CIE down 13%.

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Door shutting on plane but another wave is a-ok

ATW full steam ahead. Wow!

SDRL rocking also

CLF down 4.5%

ktownag08 said:

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ATW full steam ahead. Wow!

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My brother got a call back from them asking if he's come back if they asked him to get n late 2017...

Good news, however, another ex-employee seems to think it's just a publicity stunt to drive up stock price though.

Oh Joseph - Oil stocks gonna challenge breakouts across the board. SN, ATW, CRC will be some of the highest % gainers, although the inside market makers have sent ATW racing into the news.

Maybe this jump starts my final small cap speculative trade not to "pop" this year...CIE.

Also, understanding break out dynamics is a core discipline. PBI has broken out. Pay no attention to short term action other than knowing its a buying opportunity. It's not a guessing game on fundamentals or technicals at this point - it's a buy. What I tried to do is show you how to identify the opportunity BEFORE the initial breakout move because the resistance will now become support ($15 is now major support), so you are (in effect) covered up on all your accumulation buys below that point.

My average per share price is $14.36. I have already lowered that to under $13 because I grabbed those call options posted and added more once we broke $15.35 and sold those when they traded in the money Thursday. I do not want to lose any shares this early in the breakout, so covered calls aren't even in consideration.

So, if we remove any option per share reduction (offset) and look at PBI as a stand alone entry holding it is up 9.4% with Friday's close. Yes, the markets are yielding excellent returns on many stocks but lets track PBI in 2017 and see why this approach smokes the S&P.

Happy trading!

Closer technical look at SN and we see the clear battle grounds for the past 8 or so months of sideways waves. Well that all could end in the morning with any gap upward. About the purest signal you'll get on a stock as you can see. We have a reverse (bullish) head & shoulders within a larger H&S. The small one broke out quickly leading us to the long term resistance mark.

Note the "v" bottom on the most recent selloff attempt and the big volume that came in forming that "v" in literally 3 days. That was a huge signal that the shares want to go higher. This is the kind of options trade opportunity that has traders drooling. The near term Friday $10 strike closed with a $0.15 ask and $0.05 bid. I'm already in these but would be a big buyer of more on the breakout open in the first 30 minutes.

Typically, I want to see the stock gap open and see if it has any pullback in the first 30 minutes. As long as it doesn't break Fridays high mark I'd load up for a big move quickly above $10 putting the calls in the money. I like to get my capital back when the options double due to the short expiration date and then I'm looking for $11 to take the profits, although I'd be calling out the shares if I didn't already have a planted position.

Damn, I've been on the phone with etrade for the last hour trying to make sure I can do this options trade. I kind of chewed them out for a little while as well for not being transparent with me on options upgrades. Apparently I need 1 level higher to be able to do what we discussed. I'm going to have to just buy shares straight up, and try to take advantage of the breakout that way. I may sell if it peaks out just to lock in the earnings if it jumps enough. If it breaks out big and gets close to that $14, I might sell a covered call there for this Friday. If it doesn't breakout tomorrow, then I should hopefully have that upgrade I need within 24 hours (so before the market opens on Tuesday).

Etrade can be the worst at times.

I just sold 5k shares of my ATW above $15. Up $1.60 more after a multi day $8 move. A planted net free holding in 41 days. Fun times!

Check out WTI with a 30% premarket move

CIE slight gap $1.27 x $1.30 from Fridays $1.15 close. How about a nice "V" bottom move to break that $1.45 wall and give us a payday?!

I'm up 45% on SDRL in the last 3 days...also purchased SM on Friday before the bell. Let's keep this momo going

oldarmy1 said:

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Etrade can be the worst at times.

I just sold 5k shares of my ATW above $15. Up $1.60 more after a multi day $8 move. A planted net free holding in 41 days. Fun times!

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ATW and most ool stocks off their pre-market spike highs. ATW under $15. I'd be especially mindful of these type shares who have enjoyed 100%+ moves potentially selling into the news at the open. If you own any high flyers then I suggest a close expiring Put option right at the open at a strike price around Fridays close. As an example a $14 Put for a dime on ATW would end up creating a higher % gain than the share holdings gain if a sell the news event occurs. That $100 per option cost buys you 1000 share protection of the profits. And lets say ATW just keeps on racing to $16, up even another $1. Would you be upset at the $100 Put loss against a $1k share price move? I think not.