Pixar To 65.05

Discussion in 'Trading' started by wolftrades2003, Jun 15, 2003.

  1. I have had some amazing success using "outside days". First, let me add that this method does not trade often, but we did get a new signal on 6/6 and we bought PIXAR (PIXR) at 60.05 with a target of 65.05. We also bought the PIXR July 60 calls, looking for a 50% move.

    The drawback to this method is in taking profits. The goal on each trade is 5 points on the stock and 50% on the option. But sometimes, too much is left on the table.

    On 5/12, we bought BOSTON SCIENTIFIC (BSX) at 46.55 and the July 45 calls at $6. On 5/29, the stock hit the target of 51.55 and the calls hit their target of 9.

    I'm ashamed to say, BSX is now 61.75!

    I don't think that a trailing stop would be effective here, because usually the move stops near the 5 point target. Perhaps keeping a small part of the position open and using a real tight stop might work!

    Alan Friedman
     
  2. spam
     
  3. At least he restrained himself until his second post.