Be on Guard to short HD

[hajimow]

HD is up from 150 to 160.5 in just 4 days. Keep it in your radar to possibly short it. As hurricane might increase their sale but it also has disrupted their regular sales and stores in the affected area. An idea that I like is to sell straddle 160 for Sept 15 for $4+

 

[atrp2biz]

I did something similar. Sold the October 155/165 strangle for $4.33 going into the weekend.

 

[truetype]

possibly short it... An idea that I like is to sell straddle 160 for Sept 15 for $4+

If you're bearish on a stock, why would you sell puts on it?

 

[hajimow]

If you're bearish on a stock, why would you sell puts on it?

Why did not you look at the other side. I mean selling Calls? I did multiple trades on it today. Sold 155 PUT and 165 Call and 160 Straddle. I am safe till 156 and then I have other plans.
I do not think HD will go to zero !! Bearish is relative. I am bearish and market is stupid. I have to consider that too in my trades.

 

[Sig]

A couple weeks of ops disruption vs months and months of significantly increased sales doesn't seem like a raging short to me!

 

[Chris Mac]

I am bearish and market is stupid. I have to consider that too in my trades.

Continue to short MCD, MMM, CAT, HD, etc.
Maybe one day you could be right ?! Who knows ?
But markets don't care if you are right or wrong !

CM

 

[hajimow]

Continue to short MCD, MMM, CAT, HD, etc.
Maybe one day you could be right ?! Who knows ?
But markets don't care if you are right or wrong !

CM

I do not care what market think about me. After trading over 23 years I have gained enough confidence on my trades. I am shorting CAT and buying SBUX now.

 

[Chris Mac]

After trading over 23 years I have gained enough confidence on my trades

When you will be really confident (aka got an edge rather than throwing darts), you won't need to write it.

I am shorting CAT and buying SBUX now

Good luck ! Fight the trend

CM

 

[hajimow]

When you will be really confident (aka got an edge rather than throwing darts), you won't need to write it.


Good luck ! Fight the trend

CM

Thank you. The fact is that the hype on CAT is almost ended. HD and CAT are the two worst DOW performers today. I have more faith in HD than CAT. CAT will go down hard. If you want to fight the trend be my guest.

 

[Chris Mac]

CAT is almost ended

Yes, "almost". But being right too early is being wrong. Timing is key.
Of course CAT will plunge. MCD too. S&P and Nasdaq too. But not now.
So you "almost" make money. But surely lose.

HD and CAT are the two worst DOW performers today

By the past, each time MCD was down, you wrote: "MCD worst performer of the day". One week or month later, MCD made new all-time highs ! One day is meaningless compared to multiple years trend.

If you want to fight the trend be my guest

Who fight the trend? Not me. You try to sell strength and buy weakness. I do the opposite. Odds are in my favor.

CM