Demetrius Michael submits:
Sorry for the late post, incredibly busy these days… But lets get started with Andrew Wilkinson’s and Rebecca’s Commentery. Hopefully the technicals work so we can add this to our strategy bag. If they don’t work, then screw it, we’ll find something else that we can profit on. I don’t have time to lose money these days, and I’m pretty sure you guys don’t either. So lets make things work.
I would appreciate if we have any option traders to comment on possible entries / exits, /w stops.
TXN – Tech. Chips, etc.
"Shares declined by 9%, but there was some unusual call activity."
"24,000 November calls have traded contributing to overall options volume of 85,000 lots representing around one in eight contracts of open interest"
"bullish given call option positioning in both January and April contracts where investors traded between the 27.5 and 40 strike prices"
Okay reasons:
1. Mr Big Fund shorting, hedging with calls. OR
2. They expect a bottom in the stock, due the high volume… And possible reversal due to it?
Lets add some light shall we?
I assume you guys can read charts, so i’ll skip the analysis and do the line drawing for those with really crappy charting platforms. Basic rules, set your stops above / below the support / resistence lines on your long / short entries. Very simple… Sometimes you get fake-outs / etc, this is where it’s discresionary on your part.
For higher resolution, click on the link below. All charts are Daily.
http://web.mac.com/dem_z/PSW/71024/TXN5yrD.png
http://web.mac.com/dem_z/PSW/71024/TXN5yrDzoom.png
WLT – Diversified industrial company.
"options in play suggest a very bullish outlook for the company ahead of its November 1 earnings release"
"5,000-lot purchases in the November and January 30 calls, which were bought at a rate more than twice the existing open interest. An additional 7,500 lots were freshly sold in the December 25 puts at about $0.80 apiece"
First two charts are Daily, 3rd is 30 minute ticks across two weeks.
http://web.mac.com/dem_z/PSW/71024/WLT2yrD.png
http://web.mac.com/dem_z/PSW/71024/WLT2yrDzoom.png
http://web.mac.com/dem_z/PSW/71024/WLT2wk30M.png
CONTINUED IN NEXT POST… I really need a save button here.. and a little more flexibility on the members posting section… I mean if we do anything wrong, it’s not hard to ban someone out of the forum, need a little more trust in us. Anyways, lets rock and roll in Part II.
