It was a timing issue. The time that multi chose to make that trade was the wrong time. He could've avoided it altogether because it didn't fit his plan to begin with. Upon realization of this, losses were booked to right the ship again. You don't buy expensive time value calls when the underlying rallys into a KNOWN resistance area. Multi went back a few years in his training to allow this trade. That option traded down to $1.20. Anyone have any luck with MERQE today? It was a bread winner for some.
My post http://www.elitetrader.com/vb/showthread.php?s=&postid=881286#post881286 was my reply to that post suggesting DITM options. They have some advantages but also some risk compared to closer strikes ITM. There's also a thread I'm following on the effect of dividends on short D/ITM options: "Beware: Call writers must pay dividend" http://www.elitetrader.com/vb/showthread.php?threadid=57969&goto=newpost
sure enough we got upgrades by the sheep on QCOM today exactly as I said in my prior post -- UBS "reit buy" Citigroup "ups to Buy" anyone get into QCOM ?
anyone (besides me ) take my advice and enter OVTI --? (see above) take a look - looking @ 14.50- 15, soon (16-17 also doable) remember earnings are set for November 30th so that will be an action day- Ice
I agree: OVTI has bullish technicals. If you're in you should tighten your stops and look with confidence to $14-$14.5 where I see resistance. If you're not in, this is a riskier point to get in. I'm still trying to figure out how to use DMI. Based on my latest understanding of this indicator this could be the beginning of a stronder uptrend. Does anybody care to comment on it? PS: I didn't pay enough attention to your first post about OVTI. My mistake.