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Divergences
- Thread starter romik
- Start date
Quote from romik:
Added remainder 50% position @ $13.00, upper BB level has been broken, next resistance @ $13.50 and so is the stop, I'll let it run to $13.60. Hopefully, there will be a 3 BRD in HIST.
Average price of the short position: $12.56
Here is an updated position based on rollover.
Sep 06 average was $12.56 and covered on Sep 7th @ $12.90 (-2.7%)
Initiated short @ $13.00 on Dec 06. PT1 $11.00 reached with 50% position covered and 50% remains open till $13.00. Current unrealised Pnl ~+15% Gross (not accounting for a -2.7% loss on rollover).
I am still currently looking at hedging positions with buying calls/puts of the underlying stock. Therefore, all new calls will benefit, I hope, from having a hedge in place at the time of making a call.
One thing I am not taking into consideration here are commissions. Hopefully, it's not much of a problem as PTs are over 1% and commissions will not be taking a big toll on profits. As far as the slippage is concerned, as mentioned in the beginning of the J, I do try and settle for reduced prices than quoted at the time of opening/closing positions.
One thing I am not taking into consideration here are commissions. Hopefully, it's not much of a problem as PTs are over 1% and commissions will not be taking a big toll on profits. As far as the slippage is concerned, as mentioned in the beginning of the J, I do try and settle for reduced prices than quoted at the time of opening/closing positions.
Quote from romik:
Short ABI (NYSE) Applera Corp - Applied Biosystems Group
Current: $30.84
PT1: $28.00
PT2: $25.00
PT3: N/A
Average down: N/A
Stop: $33.60
BRD in MACD/HIST/RSI/STOCH on a weekly chart attached.
http://finance.yahoo.com/q?s=ABI
hopefully this is ripe for a decline here, 52w high has not been broken so far and the price is down over 2% today
SHORT - IPG (NYSE) Interpublic Grp of Cos
Hedge: Buy 75 Oct $10.00 Calls @ 0.25
Current: $9.83
Average down: ~$10.17
PT1: $9.10
PT2: $8.00
PT3: N/A
Stop: ~$10.30
BRD in HIST on a daily chart attached, but daily chart is in an uptrend with a possible double bottom in the mid $7 range. Possible reward outweighs risk here. I would say that this could be a risky trade when looking on the daily chart.
http://finance.yahoo.com/q?s=IPG
Hedge: Buy 75 Oct $10.00 Calls @ 0.25
Current: $9.83
Average down: ~$10.17
PT1: $9.10
PT2: $8.00
PT3: N/A
Stop: ~$10.30
BRD in HIST on a daily chart attached, but daily chart is in an uptrend with a possible double bottom in the mid $7 range. Possible reward outweighs risk here. I would say that this could be a risky trade when looking on the daily chart.
http://finance.yahoo.com/q?s=IPG
Attachments
**********UPDATE****************
Staying in the trade as there is a strong possibility of a 3BRD in MACD and now we have also a possible short grail present in RSI on daily chart.
Short ABI (NYSE) Applera Corp - Applied Biosystems Group
Current: $30.84
PT1: $28.00
PT2: $25.00
PT3: N/A
Average down: N/A
Stop: $33.60
BRD in MACD/HIST/RSI/STOCH on a weekly chart attached.
http://finance.yahoo.com/q?s=ABI
--------------------------------------------------------------------------------
I think the fate of this trade is going to be decided very shortly. At the moment the price approaches 52 week high of $33.59, but there is a cute BRD on the weekly chart, which is still valid. So the plan would be to close the trade @ initial stop level and re-enter the short when shorter TFs start showing signs of weakening upside. Hopefully it's not going to gap down or up for that matter.
Staying in the trade as there is a strong possibility of a 3BRD in MACD and now we have also a possible short grail present in RSI on daily chart.
Short ABI (NYSE) Applera Corp - Applied Biosystems Group
Current: $30.84
PT1: $28.00
PT2: $25.00
PT3: N/A
Average down: N/A
Stop: $33.60
BRD in MACD/HIST/RSI/STOCH on a weekly chart attached.
http://finance.yahoo.com/q?s=ABI
--------------------------------------------------------------------------------
I think the fate of this trade is going to be decided very shortly. At the moment the price approaches 52 week high of $33.59, but there is a cute BRD on the weekly chart, which is still valid. So the plan would be to close the trade @ initial stop level and re-enter the short when shorter TFs start showing signs of weakening upside. Hopefully it's not going to gap down or up for that matter.
Quote from romik:
Here is an updated position based on rollover.
Sep 06 average was $12.56 and covered on Sep 7th @ $12.90 (-2.7%)
Initiated short @ $13.00 on Dec 06. PT1 $11.00 reached with 50% position covered and 50% remains open till $13.00. Current unrealised Pnl ~+15% Gross (not accounting for a -2.7% loss on rollover).
Position closed for:
+11.95% adjusted