My WizeTrade just started a cross (green through red at a price of $53.97 (12:48p Chicago). The 10, 15, and 180 show red flashes. Fore me this usually means direction change.
(1:02p) Everything is now in agreement. The last twenty minutes were alternating flashes. But crosses were developing on the 10, 90 and 180 minute charts at the same time. $54.25 price blips. Good buy!
It depends on the stock and the position that YOU want to take. If you want to exit on the cross, then you do. If you are feeling a reversal is in order, you might execute an option to try to catch it. Today I had bought a stock, CVH, that I thought I might try an option play with. I didn't pay attention and notice that it was extremely thinly traded on the option side. But I caught the trade just right. Sold at the right moment and bought some puts as I saw the reversal happening. This was based on the lights and crosses that started to set up. I felt confident as I watched the price head down and it returned to the morning opening area. I went over to check the value of the options, and grimaced. That's when I saw it wasn't even moving. Fortunately, I was unsuccessful in buying the option so I didn't lose anything other than confidence. Instead of aggressively attacking a trade or two that I would have normally taken, I had spent time experimenting, and learning. One stock that I generally have been watching and trading with, I passed on. It made money. As for the other, I didn't even make the size of investment that I normally would have. No huge investent mind you, just smaller than normal because of not having confidence. It would have made the daily return that I try to look for had I started the day watching it. But I did learn about my account setup and how to trade options a bit. I'll get the hang of this stuff shortly.
Does anyone actually believe this guy? You say you bought 20 contracts at $1.30 and 30 contracts at $1.20. 1) Well, I know for a fact that you didn't buy 30 contracts at $1.20 2) You DID NOT sell 30 contracts at $1.70 How do I know?? A: TIME AND SALES! But you tell a nice story............. have a nice day.
This thread got moved and I never saw these posts during the day.. Looks like I missed some good postings that would have kept me out of trouble..
By mistake I posted reply in the other thread. There was some confusion as I entered the thread by clicking an e.mail link. Please refer my answer in the other thread.
End of Day 06/28/02 I placed limit orders in the morning as follows. MSQGL (MSFT July 60 calls) to buy at 0.30 - Did not get filled. MSQSJ (MSFT July 50 Puts) to buy at 0.75 - No fill. MSQSJ (MSFT July 50 Puts) to sell at 1.50 - No fill , no where near. Econsul comparison. Daily support was not reached. Daily resistance was broken but price did not move up dramatically. At the end it moved down. Weekly low was not reached at all. Overall : The direction provided on Monday - Tuesday - Wednesday were good and simple option strategies made based on that direction was ok. I made money. I am happy. I am down today but not by big margin. My current holdings on MSFT : MSQSJ July 50 Puts = 52 contracts. What I want to do next week ? To get rid of all puts at the best possible price . Why Options will expire on 17th July and the time value will come down heavily. So I have get this sold and use only at the money options for July. Good Weekend for all.
Post Time : 09:14 ET MSFT Trading Strategy based on Econsul Support and Resistance: 1. Buy August 50 Puts when MSFT is above 54.50 2. Close all existing July Puts during the week of if MSFT is at support 52.50. 3. Weekly low of 49.50 is expected.