Stock, Option and Futures Trading
Option update- Big Profits!
June 6, 2011
Our call positions have exploded and if you are still in we are moving our stops to the low of today on all symbols.
ISRG Calls hit a high of $24.30 today. There were a few entries on this one starting from $4.50 up to $7.40
CMG Calls hit a high of $26.00 today. The entry was $5.00!
AMZN Calls hit a high of $10.45 today. The entry was $1.90!
FFIV has made a $10.00 move from the update at $105.00
DECK has made a $8.00 move from the $82.00 entry level.
Overnight trading is higher tonight with the NQ up 11.50 as we write this post. When I see the short term condition extended like right now then over night trading up like this I get concerned that tomorrow could be a reversal day and we close lower tomorrow and take out the low of today. I could be wrong and we continue the move up but I would play it tight here because we are sitting on huge gains and we do not want to sit through a correction on a daily chart OR even the 60 minute chart.
With front month calls it is important to sell into the strength of the waves. Overall I do think we go higher like I have been posting for weeks. The question at this point is where does the correction occur and when.
AMZN target $217
ISRG $385- $395 ($385 and today the high was $384.50)
By placing the stops below the low of today we can still participate in the move if the market stays strong and if the market gets weak we will bank the profits. If we are not stopped trail the stop to the low of tomorrow and keep doing that until stopped.
PS> We received a email asking why we are not taking more trades. Our goal in trading is to let the winners run not to be in 15 trades at a time going for 40% moves. We are better off managing the positions we are in with options that are going up 4 to 6 dollars per day than over trading taking on more risk.
There is a time and place for smaller trades but right now is not that time.