You know me. I tell you to stay focused and careful, and then sell a lot of my holdings, but yet, I can not seem to stay out of the market. When 90%+ of your trades are profitable, you must continue to trade and take advantage.
So I thought I'd take a long flier on Caterpillar. The chart looks good. CAT doesn't report earnings until Jan, but its sitting at the cusp of breakout from a long cup and handle formation. My main concern here is the large amount of calls sharing the position with me at the Nov 80 point which will act as overhead resistance, but can also serve as the catalyst to propel higher if the stock successfully moves beyond the 80 mark. But if the stock hits 80, I may cash in and take whatever gains I have by then (which needs to be soon). The calls were trading around 1.26 at time of purchase (CAT is down now so they should be cheaper).
The second position I entered today is a long call position in OVTI - OmniVision Technologies. The stock is trading in the neighborhood of 26 dollars and I bought the Dec 26 calls for 2.35. OVTI reported good earnings and the stock busted out a base (cup and handle) on strong volume. Let's see how this plays out.
Update 10:30 AM
NTGR (NetGear) broke out of a base and looks like might have a shot at hitting 35 soon. Opened a call position in Nov 32 calls for about 0.85 each.
No comments:
Post a Comment