Thanx guys. I scaled out more of the position for profit and lowered the stop from breakeven... The reason for more scaling out is because of the inherent strength of the broader market... --MIKE
hard to find a short in this market.... but I found two hybrid short/laggards (qcom/msft). Hey it takes skill to do that bros! But while still long stock from 31-33... I did take the opportunity to sell May 30 calls and get out early expiry morning (as I believed the gap to 30.90 would fill that day) before qcom "possibly" headed lower back to 30 and possibly touch the upper 20s. I am now short June premium against stock. Why not sell the stock?! That is what I am currently re-thinking, but at this point I am trading out of the position, and my goal is always to be net ahead, or turn a potential loss into an opportunity.... lemon/ lemonade analogy; and I don't think shorting these equities right now at these levels is the way for me to go. And, after reviewing the numbers, frankly by selling a high ratio of 32.50 and 35 calls when qcom was 33+ and selling May 30s above 31.50 I am actually doing ok, net dollars up. So guess I need to thank shorts like Mike. Although it was obvious after a while that I was going against the trend in looking for a sharp and unexpected reversal back to 200 d/ema, I still didn't think stock had much more downside... and still don't want to be short too much down here after the next couple points down, if any. But gotta be open-minded. Obviously directional trading gets more bang for buck and nimbleness may not be as much a factor, meaning if I'm short QCOM June premium with still weeks to go, and near the money, and QCOM finds a ST bottom soon and explodes ala some other bellweathers and crapola stocks over the past 6 weeks, I get caught, and end up with zilch vs. a trader with a good stop in place on said short stock. At that point my plan would be to add stock, or sell put premium on any such reversal after confirmation it was a ST trading bottom via volume, upgrades and the like. Was wondering if anyone had any comments on my aforesaid "strategy/method". And also whether the consensus on this thread is that QCOM sees high/mid-upper 20s first. Thanks. Regards, Iceman
Well, my comment is that I just love listening to "otpion-speak". I usually have no idea what's going on (or it would take me a couple hours going over each line with Natenburg by side), but it really sounds very cool. High time I started getting informed on this aspect of the game, methinks. As for the straight stock call, QCOM being one I habitually keep an eye on, there's a mountain of support at 30. Friday was a combination of gap fill from Wed close plus a bit of a bounce off support. It's my view that we see dabble with 28-30 before seeing above 33; and the latter would take a good dollop of general market participation, I think. Trend Fader, thanks for sharing some of your trades; it's fun to read about your though process throughout a trade. Imo, shorting at 32 (that's where you did it, didn't you?), didn't have the greatest risk:reward I've ever seen, given the healthy support at 30 and the generally bullish Naz; but you're probably looking good to go a bit lower. (You've still got some ammo left right? ie, you didn't partial it all out? )
Thanks for the comments. Funny how people I talk to think options and options-speak are "cool", but here I am beginning to look into incorporating more equities and futures into and "around" my options trading, out of some recent frustration at the lengthy time often involved in options positions. Greener grass syndrome, I guess. I also agree that Mike posts some valuable stuff on ET, and I like reading him. alfonso, good luck in pursuing options. Here is a link (compliments of Vulture) that you find might helpful: http://www.cashflowheaven.com/cws.pdf Ice
Hey, thanks for the wake up call. I've had that one for a couple of month, still haven't read it. Idiot! (That was also very kind of the nice folks at thinkorswim -- but I'm still not opening an account with them!) Oh, and I think option-speak gets an A+ in the 'Impress your friends' department!
Take note, QCOM has been upgraded and in the pre hour trading is already up to +2.3% I would assume it going to go over 31. Don
not unexpected... in fact I was looking for it. but one has gotta go by technicals; and until they improve I am gonna stick with my short front month calls and long stock. I'm trying to sell some QCOM otm puts this morning if it trades back into gap. Ice
Just an observation. 10:12and 12:05est Tuesday are trading time for Qcom . I was asked to post it here. Walter