Bullish on Stock - Request for Advice

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pattersb

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I'm fairly new to options and would appreciate any advice ..

I've discovered a stock that I am very bullish on. I'm planning to buy the underlying, but I'd like to maximize my profit potential through options contracts.

The technicals look super-fantastic, and it has weathered the last week unscathed.

It's failry lightly traded and trading at 64 and I think it has room to go higher ...

I'll buy call contracts, but I plan to risk more than usual. Any suggestions. I'd like to minimize risk/maximize profit.

wouldn't everybody ...
 
If it's a chinese ADR, the stock is overbought at the moment. Waiting for a pullback is best, but if you really want to jump the gun use a very tight stop.


Quote from pattersb:

I'm fairly new to options and would appreciate any advice ..

I've discovered a stock that I am very bullish on. I'm planning to buy the underlying, but I'd like to maximize my profit potential through options contracts.

The technicals look super-fantastic, and it has weathered the last week unscathed.

It's failry lightly traded and trading at 64 and I think it has room to go higher ...

I'll buy call contracts, but I plan to risk more than usual. Any suggestions. I'd like to minimize risk/maximize profit.

wouldn't everybody ...
More...
 
Good call optionspro!

My thinking is that if any week was good for a pullback, it was this one. Frankly it appeared to me Everything was over-bought. I've been longing puts this past couple weeks, and just noticed this stock blazed right though these past few days.

Not too mention the potential Chinese customer base.


you're probably right ... I'll look for it to move back to 60 ...

Thanks for the response, and the pause ...
 
pattersb,

I looked at the stock again. It's difficult to see it's real strength. On the one hand you have major distribution going on. Volume during the past three weeks has not been institutional or fund related. And on the other you have the public going crazy feeding itself like hungry piranhas....

The way I see it, this weeks buyers are the biggest suckers at this point...

The distance from price to it's 50 day moving avarage will tell you how much / if the stock is over-extended.

If it was me, I would wait for price to form a nice looking base. The stock has only based once since it's IPO, so it has at least two good bases in store...

Good luck !!



Quote from pattersb:

Good call optionspro!

My thinking is that if any week was good for a pullback, it was this one. Frankly it appeared to me Everything was over-bought. I've been longing puts this past couple weeks, and just noticed this stock blazed right though these past few days.

Not too mention the potential Chinese customer base.


you're probably right ... I'll look for it to move back to 60 ...

Thanks for the response, and the pause ...
More...
 
yeah. it would be a gamble.

I have nothing to buy now, my signals have maxed out.

... Although, I could wait for this one to turn ugly, and pick up some puts. Probably the smarter way to play it.

thanks for the perspective
 
We're talking about LFC correct?

I was going to buy puts when it gapped up today. Too expensive though...

Very predicatable retrace though ... should have followed my gut.


Good luck
 
Quote from pattersb:

actually, they are plenty of opportunities out there.
never give up!

:D
More...

pattersb to answer your original question..irregardless of the stock...a spread is always a good option. If you are bullish on a stock and the sky is the limit then straight calls are fine but most of the time you guys that are good at TA can pick a target so in that case a spread would work better.
 
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