Discussion in 'Options' started by mikeenday, Mar 4, 2011.
I bought some OVTI April 33 calls today.
I'm not sure I did it right. any comments, please.
I'm assuming you mean you aren't sure if it was a good trade.
1) OVTI has had a 50% run up in just over a week.
2) It's making new highs on the 1 year chart, but if you scale out a bit, it's heading in to price ranges that have been big time resistance over the last 6-10 years.
3) Price action today is stalling a bit.
4) April isn't that far away, so if price starts to muddle around a bit, in a couple of weeks, time decay is really going to start eating away at your position.
I'm not that familiar with OVTI as a company, although I did see it mentioned alongside Apple (must have a part in one of their products), which is not a bad thing.
I'm also not saying it can't rocket higher, but there's a bit of a stiff breeze blowing against your in my opinion.
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