My Options Play

Discussion in 'Options' started by Multioption, Oct 3, 2005.

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  1. cnms2

    cnms2

    Do you care to elaborate why you're thinking so? What is your time frame for $65? AAPL looks so overbought ...
     
    #561     Nov 3, 2005
  2. AAPL is at all time high, there is no resistance levels on a company that is a leader in its field. With only 5% of the computer market and the christmas season on the way sales could be through the roof.

    Earnings sometime in January.
     
    #562     Nov 3, 2005
  3. OVTI is a sell into the gap. Bullish technicals? OVTI is doing what the rest of the market is doing and that is showing you a BLATANT price pattern that you should've booked already. Think like a trader, not an investor--you want to buy paper or sell it after such a price pattern trading into a known resistance area? Think big.
     
    #563     Nov 3, 2005
  4. cnms2

    cnms2

    You're right: it's risky to buy now. It's always risky to guess reversals. There is a clear bullish divergence from June's low, as well as it is a clear downtrend started end of 2003.

    Depending on the time frame you like to trade you could see a different picture. I remember an author writing that it's great to trade weeklies, but you have to do it without watching the dailies. Dr. Elder was writing something similar: if you're trading daily charts, you have to resist the temptation to exit based on the intraday charts.
     
    #564     Nov 3, 2005
  5. cnms2

    cnms2

    :) Joke: There is no resistance above me, but still I can't fly ... Another one: Newton discovered his law of gravity being hit by a falling AAPL ...

    I like AAPL for all what it brought to us and to its industry, and I have a lot of respect for Woz and Jobs for bringing it to us.
     
    #565     Nov 3, 2005
  6. cnms2

    cnms2

    Following up: it's widely accepted that when looking at multiple time frames you should use a factor of about five: monthly, weekly, daily, 60 min, 10 min, ... It's also noticeable that the shorter the time frame the tighter are the envelopes, maybe by a factor of 2-3. This makes option trading more suited for longer time frames so that slippage is less of a portion of the thrust, and delta is still large enough without going too deep in the money.
     
    #566     Nov 3, 2005
  7. cnms2

    cnms2

    #567     Nov 3, 2005
  8. #568     Nov 3, 2005
  9. AAPL shall head further north tomm. Nov 4, 2005
     
    #569     Nov 3, 2005
  10. OVTI should make a higher high tomm nov 4, 2005
     
    #570     Nov 3, 2005
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