it's not that it can't break through 19 it's that it has run from 10 to 19 with little retracement... I personally believe rmbs is a safe 25 - 35 dollar stock..but the stock needs feeding and the longs right now are the food...the funds etc that got hammered on the way down will/should take profits and reenter lower. good luck with your trade. w
Nassau Can I get an update from you on what you think about rmbs?..I think it will mostly be in the red for this coming week.
I was, but I got scared and sold half my position a few minutes before the bell. It cant hold 19.00 and I think the bad news may be a reason why.
I personally see rmbs pullback 1250 area..two strke prices below..current prices.. I believe in the stock and its value as it has 400million in the bank and still an income with patents etc.. I range in the stock will be large next 3-6months.. ie 12dollar to 2250 range..that is why I will write puts when the stock pullsback.. this stock could end up running long first and retest 20's but from a news point of view not technical i see the pullback first... technically the stock is a 25 -35 stock in my oppinion. if you have sold half your position and can afford to hold...I would wait and write 1250 oct, nov puts when it pulls back along with some stock just incase the pullback is not as far as i think.. this way you get a better average and the puts give you back some of the loss of the early exit if when you exited it was at a loss otherwise extra profits.. the stock has very large cycles...and is a stock you need patiences with....even though i believe the stock will pull back several dollars I would not personally short the stock at these prices as anything can cause it to run dollars and we are really never privy to the current situations.. good luck.. w
I cant trade options , but what I think I'll do is if I see a pull back, i'll just short the same number of shares that I'm long to freeze my profits until it goes up again..if it does.
do you mean you don't have knowledge of options? if need be you are better to buy puts to ride the stock short then to short more stock it hedges you but also can lock you. also if you don't mind..what type of account do you have...buying them will limit your expense but also it cost a lot less. w
I have taken profit in most of my call options. Right now only have Oct 17.5/20 call spread left for my green paper trade. (bought oct 17.5 calls @o.5. Later when it became 1.9 sold oct 20 call @ 1.2 to lock in profit. leg into the spread.) waiting for the market/rmbs to pb.