I'd like to hear from some of you who regularly trade stocks in channels. I bought a few July 40 calls on T today when it was down based on their chart. Smart or not? I think it's heading back up in the next seven days, but this isn't my usual type of trade. ____________ http://mytradersjournal.com/stock-options/
Update - the 4 calls I bought for .30 hit .65. Should I sell two and let the others ride? T is hitting its 20 and 50 ma, but doesn't seem that its been a big point of resistance in the past. Any suggestions?
I would caution you on any long term AT&T calls as the company is starting to see some problems creeping into their operations and customer service. I agreed to switch broadband suppliers & go to them last month. They started billing me right away but have not turned on the DSL capability and according to their last communication it was not going to happen until Aug 8. I am canceling the order. I am also taking my phone service elsewhere. To see what other customers are saying go to www.dslreports.com and read the comments especially about the switch of Southern Bell to AT&T. Hopefully they will get better and care more for their customers than the photo shows of how one of their people feel about their business customer's sign. By the way, they refused to repair the sign after they parked on it!
All that is true. I work for "The New AT&T" as a contractor. I'm only thinking short term and stictly based on the chart. I only have ~$130 into this position, so it's more of a way to learn at this point. My charting abilities are fairly basic.
I stuck with my original limit I set at 0.70 and sold 2 of the four calls. Now I'm only out $4.50 (after commissions) if it drops in the next 6 days. I can let these other two ride without risking my money now. The call premiums are rising again and hit .85 a few minutes ago. If/when it gets to the top of the trading channel I'll sell the other two. Sorry to sound like such a rookie on this. I generally just sell naked puts, so I'm just building a comfort level buying calls now. ____________ http://mytradersjournal.com/stock-options/