Your strategy looks interesting. Could you post some examples?
Contrarian/ Buying the lows
- Thread starter arturo100
- Start date
Your strategy looks interesting. Could you post some examples?
Sold Call on CNC @1.2: +15%. Before earnings I took some money off the table from DOCU, by selling the 57.5 Call @1.75. I was right, because earnings were a disaster and the title lost over 20% in the post market. Anyway I might play again contrarian if the market will overreact to the news. Now I am long the C55 and short the C57.5. They wil probably expire worthless on June 21.Sold @2.63 Call 52.5 on K: +260%. Still keeping calls on DOCU, CND and CTRP. I am relying on short positions on MU and TLRY to ride today possible fall.
Anyway, I am looking for some contrarian action. Is there any knife falling around ?
Price extremes are the only set-ups I enter for strictly directional bets.
As hard as predicting direction is, I do fairly well at extremes. Ever since I got into the trading world I was contrarian. I always think and act oppositely from the herd.
As hard as predicting direction is, I do fairly well at extremes. Ever since I got into the trading world I was contrarian. I always think and act oppositely from the herd.
One can bet contrarian while following the trend...
Ex: 6 month trend is up, but to go up price reverts/goes down every other week to push higher (as in any healthy price action), so a contrarian will buy the dips and sell the peaks.
This is still considered "contrarian" to me.. maybe not for others? I'm curious what you all think.
That is still trend following and not contrarian. Contrarian is if the trend is up and you short the stock. You fully expect the stock to tank and drop. Buying on pullbacks is not contrarian, you are just looking for a low risk entry.
I was wrong. Today it was announced an all cash takeover @92.5 by Dassault Systemes.
The problem with this contrarian play is that chances are that someone knows more than you!