oldarmy1 said:

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Ranger222 said:

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Old friend JD may be worth a look.....forming nice wedge on the weekly and today saw big buying in long dated July and September 40 calls

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I will join you on this!

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I'm looking to getting in on this too through robinhood. May be one to learn on.

That said, what is the strike price you are looking at here?

WestTexAg12 said:

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oldarmy1 said:

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Ranger222 said:

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Old friend JD may be worth a look.....forming nice wedge on the weekly and today saw big buying in long dated July and September 40 calls

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I will join you on this!

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I'm looking to getting in on this too through robinhood. May be one to learn on.

That said, what is the strike price you are looking at here?

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probably the $40 strike price mentioned.

Ragoo said:

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WestTexAg12 said:

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oldarmy1 said:

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Ranger222 said:

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Old friend JD may be worth a look.....forming nice wedge on the weekly and today saw big buying in long dated July and September 40 calls

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I will join you on this!

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I'm looking to getting in on this too through robinhood. May be one to learn on.

That said, what is the strike price you are looking at here?

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probably the $40 strike price mentioned.

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Yessir. What do you see on those Ragoo?

Also - we filled the DOW gap yesterday. We open lower and maybe even work towards a retest of yesterdays low - bears trying to break trend back to lower levels? Or we hold on through more consolidation before resuming up channel? I'm fairly positioned for either outcome but will take a bit of a hit should we break down further than lows yesterday.

I did manage to re-enter some covered calls I had bought back for pennies but some holdings didn't recover enough to make that strategy worthwhile, so I'm naked long on those.

Simple chart on what I'm watching. We filled the gap up yesterday. The lower level support around 24625 DOW holding is what is most critical, not what we saw yesterday. You can see the increased volume on the DOW yesterday signaling the buying that rallied the markets off the lows.

You can also see that the previous resistance top was broken but failed and is now back below it. So that is a signal for bulls on where they want the markets to go. All of this within the context that the sideways markets predicted are the tradeable boundaries and since we are close to the mid-line its not an ideal time to be a buyer or a seller.

Hope that helps

I think APC is oversold and will get a bounce. I entered shares at $69 with a stop at $68.50

Thoughts on those BAC calls? They're a lot cheaper now.

leoj said:

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Thoughts on those BAC calls? They're a lot cheaper now.

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Just hanging in on them through this consolidation round. That's why you buy them out far enough.

well, i've made my first seemingly bad trade. sold put options in BBY last week for a high premium with a high IV. This week the price has slipped below my strike and then massive sell off this AM. I rolled these put options out 3 more weeks, collected another $0.34 in premium credit and bought myself some more time for the stock to come back up or for theta to help me out.

Puts me in the trade longer than I really want but I can stay in the trade and hopefully not lose. Depending on how this works out I can roll again in the future collect more premium and again and again until hopefully the premium collected offsets what I have to pay to get out of the trade and I walk away without losing money.

Ragoo said:

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well, i've made my first seemingly bad trade. sold put options in BBY last week for a high premium with a high IV. This week the price has slipped below my strike and then massive sell off this AM. I rolled these put options out 3 more weeks, collected another $0.34 in premium credit and bought myself some more time for the stock to come back up or for theta to help me out.

Puts me in the trade longer than I really want but I can stay in the trade and hopefully not lose. Depending on how this works out I can roll again in the future collect more premium and again and again until hopefully the premium collected offsets what I have to pay to get out of the trade and I walk away without losing money.

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When you have some time would you mind writing up the rolled option strategy? I've kept the posts to simple buy call/put options, along with some covered call strategies, but the rolling stratgy is key to success.

Sold Apple on the $189 retest this morning, put in limit buys at $187 right after. Bounced literally off $187. Not sure if it breaks through the $189 finally, but playing this $2 tight range is kinda fun!

oldarmy1 said:

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Ragoo said:

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well, i've made my first seemingly bad trade. sold put options in BBY last week for a high premium with a high IV. This week the price has slipped below my strike and then massive sell off this AM. I rolled these put options out 3 more weeks, collected another $0.34 in premium credit and bought myself some more time for the stock to come back up or for theta to help me out.

Puts me in the trade longer than I really want but I can stay in the trade and hopefully not lose. Depending on how this works out I can roll again in the future collect more premium and again and again until hopefully the premium collected offsets what I have to pay to get out of the trade and I walk away without losing money.

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When you have some time would you mind writing up the rolled option strategy? I've kept the posts to simple buy call/put options, along with some covered call strategies, but the rolling stratgy is key to success.

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I sold to open Put options at a strike and collected premium. I think $2.70 per share. They expire tomorrow and with the action in the stock price i would have had to purchase the shares at a price MUCH higher than current value. Effectively this would have closed my option position and I would own the shares at a cost basis of Strike - $2.70 which still puts me upside down on the trade.

So, I bought the options back at current market value, and sold the same put, same strike out another 3 weeks with a total net credit to me of $0.34. So now my breakeven is Strike - $3.04. Still upside down to current market value of the underlying, but if we see the sell off stabilize and price comes back up I can still potentially close the trade out at break even. I may even be able to keep kicking the can down the road until my total in premium collected is enough that i can hold to expiration or buy the puts back cheaper than my total premium.

Note: i would not have rolled the options another 3 weeks if I also did not receive a net credit.

I went ahead and sold the remainder of my NFLX calls, since it was a small position. Got a little spooked with this dip, so I sold nflx relative strength. +182% for a 2 day hold.

So we retested the support lows (momentum took them just below with a quick volume recovery - Day traders and my entry point today) and have now bounced back again. Sold the Puts on the volume spike retest and entered some nice long trades.


Also - if seriously wanting to be a professional trader then get a system where you can have a 1 button execution. No looking around, entering a price and confirming. Things happen in hyper time on these major volume spike openings.

Since that didn't form I'm editing to say the markets look like they are looking for some bad news still. Markets really needed to complete a full reverse today and instead we have a lower low and lower high on the day.

Take this newbie to school. What's the hammer and what's it signify?

cgh1999 said:

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Take this newbie to school. What's the hammer and what's it signify?

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Well it didn't make it so it doesn't matter for our purposes.


This is what it looks like on the candlestick chart.

Ranger222 said:

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This is my view.....still trading within this range between 270.6 and 274.3 on the SPY. I see this as a bull flag with eventual continuation to 280, but we may be range bound for the next few trading sessions before a break and move up.

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That's the set up I'm seeing but what would be your break point?

Can't believe no one has mentioned my 2016 pick of the year "I". Intersalat at under $3 major accumulation. Maybe its because I planted it as a net free holding long ago (11/16/16 post) but goodness gracious.

At any rate - if anyone did buy it I sold 75% of all holdings just now.

Too early to get back in on SN?

aggielax48 said:

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Too early to get back in on SN?

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I bought back half of all sold shares of SN and will buy other half watching volume for major support spike.

aggielax48 said:

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Too early to get back in on SN?

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If it drops down to $3, I'm buying even more.

aggiehunter3 said:

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aggiehunter3 said:

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oldarmy1 said:

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AggiePeeps06 said:

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Couldn't you just sell calls against the holding instead of selling the actual holding?

I'd hate to sell 50% and miss out on a continued rally

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Depends on the number of shares you planned to carry longer term. If you have 300 shares then you wouldn't do a thing. If you owned 10k shares you might sell a covered call against 25%-50% of your holdings. When you accumulated 145k shares with a goal of holding 50k longer term you do any of the above, including straight selling, up to 95k shares.

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What would be your strategy on LEAP calls? I started trading options in February, so still pretty new. I've mainly bought only weeklies or a couple weeks out so far. My basic strategy for exiting is to sell 50% at a double + commission in order to take all risk off. The tricky thing for me is determining my sells for the other half of the positions. I've caught some big runners in recent weeks (baba, aapl, bidu, chk), but have had a tendency to sell a little early.

Here's an example with CHK: last month - I made a small bet 100 contracts $4 strike 7/20 expiration .10 premium when the stock was trading around $3. Earlier this week I sold 50 contracts at .24, I sold another 20 contracts at .53, so now I have 30 contracts remaining. Even if these expire worthless I'll net $1k gain off the trade. Of course I'm sitting here kicking myself now for selling the first half so soon, as I missed out on ~$2k on the spike to .7 this morning.

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Remaining calls are now .84 from my .1 entry with 2 months until expiration. I love options.

My other open option positions:
1. 1/18/19 EPD $30 calls .80 premium (large call sweepers in these calls- 25k open interest following "smart" money)
2. 6/15 CL $65 .35 premium (looking for an oversold bounce)
3. 7/20 LPSN $20 .5 premium (overbought chart but in breakout mode - looking for continued momo into next q earnings)
4. 5/25 XLI $77 .1 premium - sold half today at .25 chart busted through lower high resistAnce

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Update on positions:
1. EPD hammered with oil this morning and calls down 25%, not too worried, since they're leaps
2. CL upgraded this morning PT $72 calls are sitting .65 with 3 weeks til expiration
3. LPSN - these calls are getting no volume, so sitting breakeven
4. XLI - sold the other half breakeven
5. Entered into 6/15 AAPL 190s $2.05 premium - chart still looks great and calls up 30%
6. Entered into 6/15 EA 135s $1.30 premium - chart flagging very similar to aapl and been range bound with 135 resistance and tons of support at 130. Looking for it to break out of the box

A little heartache for O&G stocks.
https://www.forbes.com/sites/ellenrwald/2018/05/25/oil-prices-plummet-after-saudi-arabia-and-russia-signal-intent-to-raise-production/#431ad9366507

No more options for now. Sideways markets close to mid-channel has created stagnant premium. If anything selling naked calls slightly below current prices gets you best returns.

Someone bought $71 Million worth of NVDA stock at 2:02 central. Normal high volume trades are about 5% that amount.

Any stocks you guys are liking for a medium / long hold? I just sold off some positions and looking to reinvest

Was thinking about LUV as they should come back up if oil levels out and the fatality incident passes, what are you guys thoughts?

And I haven't gotten ballsy enough to do option trading and what not, so I'll just stick with simple buys for now

$MOSY- Semiconductors that have beat earnings 4 QTs in a row. Chinese agreement should continue to help them.

$AMD- Same as above basically

$F- The dividend

$AIMT- Biopharma company working on food allergies. Primed for a buyout.

$AVEO- Great entry right now as they took a beating for pushing back their reporting on their Phase 3 data. Another biopharma working on renal cell carcinoma.

Luv would have been good before today, all of the airlines went up on oil going down.

$ROKU - massive potential long term, load up if it goes under $35 again

$AVEO - agree with Irish

$DOCU - love the product, buyout potential, competition exists though and risky, personally holding off for a few more months to see what it does a little longer post IPO

$NFLX - it's just not going anywhere but up long term IMO, everybody entering adulthood will have to get their own sub eventually, damn near monopoly at this point. Great chance for worldwide dominance, Wait for the next down wave if it happens, $330-335 load up

$AMZN - similar to NFLX but even safer, my largest position, basically where I park my "cash", won't continue to have the explosive growth going forward just cause it's so big now but expect it to continue to outperform the overall market IMO, my theory is that every new adult will get a membership and likely prime eventually and once you have an Amazon account you never go back to not having one. As young people age and life expectancy goes up and up it just keeps getting used more. Damn, I've almost talked myself into buying more. For long term investing if it goes back under $1600 load up. Maybe wait for $1575.

$MU - I think the historically up and down volatile chip sector will become less volatile moving forward for lots of reasons related to more steady demand: AI, IoT, big data, self driving cars, etc. Look at a logarithmic MU chart since May 2016 and draw an upper and lower limit line. Next time it touches the lower limit or the 100 day MA load up.

$SN $CHK $SWN - just do what oldarmy says, load up at $3/3/4 and figure out when to sell later !!! Don't overthink it

$JPM $BAC - I do this for diversification purposes and hedging if interest rates rise more than expected and the overall market stalls and goes flat/slightly down over the next couple of years

I currently only own about half of these and am kicking myself for buying mutual funds and sector ETFs in the past to be "safe" instead of going with both my head and gut on the others (currently no NFLX, AMZN fairly late to the game, only small position of MU in low $40s). Also pure stubbornness waiting for the perfect buy point when it was close. Still bitter I guess about not buying CHK when it only touched $3.01 waiting for $2.99!! Lesson learned I guess. #yolo

Thanks guys

Consumer staples and discretionary are down a lot so far this year. Kmb, mo, General Mills, Pepsi, nwl, pg, etc. most have stable and rising dividends, so maybe worth taking a look.

leoj said:

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Consumer staples and discretionary are down a lot so far this year. Kmb, mo, General Mills, Pepsi, nwl, pg, etc. most have stable and rising dividends, so maybe worth taking a look.

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Might start taking a nibble but the ETF's are a showcase of bear traps. All wrapped up in the big head and shoulders top. Then the bear flag (rising) fails all the way down (red arrows pointing them out.

And check the volume spikes every time support came in creating short term pops. I'd use the ETF volumes to make a decision on entry of a consumer staple stock. Or even just to enter the ETF's like XLP, VDC, KXI, IYK.