Doesn't take a genius to see market screaming to take off at least half position on the 3rd high that closed below previous pivot's high or 4th high where price could not get above 30.90, got out of the short Oct puts same price went in at. Took profit on half position, stops be at 29.95
GE
- Thread starter Handle123
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You stay playing the game long enough, there literally hundreds of the "little things" you eventually discover or read about. Like I know when putting in a stop, never put it on before the markets open, cause if price gaps against the position, often times the first fifteen minutes is high/low of the day and ends up your direction by the close, so if gap occurs, you be stopped out at worst price anyway, so place protective stops nickel above/below first fifteen minute bar, when price has gone far enough, you be the judge as in percentage, you move stops up to breakeven plus a nickel to cover fees.
For long term stocks, I want to stay in long term, so I been using Monthly, Weekly charts, deep retracements, trend is sloping of sma, now if you are bold, when price comes down to sma, BUY IT and do Put Debit spread for hedge, risk going to be tightest as you buying low, but many prefer to switch to daily and do breakouts and risk is more. I very seldom ever go long just Buying options, and when I do it has to be keeping them short term cause even though the underlying going your way, you losing out on the premium.
The GE trade I took was based strictly on what I call "Crowd" signal. Besides it paying 3% div, I went in based on trend line by a free service. http://finviz.com/ I have found through the years that free services are great to use for initial entry as may others will be doing as well, plus when you select large companies that have many products, they usually not going to drop like a rock. Plus, on 1-2 days after it has hit trendline, keep eye for increased volume, want it over the average by healthy amount. Volume is like interest, more volume, more people want in it, when volume decreases, people shopping elsewhere and if already in a trade.
Am keeping protective stops at 29.95 after fifteen minutes.
Have great weekend all.
For long term stocks, I want to stay in long term, so I been using Monthly, Weekly charts, deep retracements, trend is sloping of sma, now if you are bold, when price comes down to sma, BUY IT and do Put Debit spread for hedge, risk going to be tightest as you buying low, but many prefer to switch to daily and do breakouts and risk is more. I very seldom ever go long just Buying options, and when I do it has to be keeping them short term cause even though the underlying going your way, you losing out on the premium.
The GE trade I took was based strictly on what I call "Crowd" signal. Besides it paying 3% div, I went in based on trend line by a free service. http://finviz.com/ I have found through the years that free services are great to use for initial entry as may others will be doing as well, plus when you select large companies that have many products, they usually not going to drop like a rock. Plus, on 1-2 days after it has hit trendline, keep eye for increased volume, want it over the average by healthy amount. Volume is like interest, more volume, more people want in it, when volume decreases, people shopping elsewhere and if already in a trade.
Am keeping protective stops at 29.95 after fifteen minutes.
Have great weekend all.
HPT, guessing that this stock will punch through Monday, so I be a buying at 27 limit and they pay very nice dividends 7.56%, it looks tough to be able to do much as far as options, wide spreads, but if can, Long puts instead of spreads. Hoping it gaps then retraces. I like the higher recent bottoms
Am keeping protective stops at 29.95 after fifteen minutes with GE.
Am keeping protective stops at 29.95 after fifteen minutes with GE.
number of outstanding GE shares now 9,195.655 million shares looks like they bought back another ~134.945 million shares in few months