Im thinking about going short on INTC ...
- Thread starter Jumpshot
- Start date
And if you put your money where your mouth is, you got rolled today.
It would be far easier to put in a sell-stop under today's low at 17.94 and patiently wait for the upside momentum to subside.
Did that ever occur to you, or do you base all of your trading methodology off of the Encyclopedia, Page 852
It's not a terrible idea Jumpshot, so don't be dissuaded if your so inclined, but do wait for the upside momentum to subside, and signs of weakness to appear. Closed sort of non-committal today (Monday, Aug 20). Let's see how it trades overnight and opens in the morning. One thing in your favor is we are bumping up against resistance in the S&P. (Kind of a resistance zone really between 940 and 1000. There is some fairly strong resistance in the 970 area and of course 950 is sub-magical and 1000 is magical!).
Maybe consider an Aug/Oct bear put diagonal. (Simulate short stock with a fairly deep in the money 3 or 4 months out long put and sell an atm or slightly otm put in the front month. Then even if the stock does nothing you won't lose much and could even make a little by the front month expiration.
Anyway, i don't think your idea is a terribly crazy one, but i'd wait and watch for signs that it and the market have decided to return home to Momma at 880. At present they are both on tour with the Earnings Circus.
Maybe consider an Aug/Oct bear put diagonal. (Simulate short stock with a fairly deep in the money 3 or 4 months out long put and sell an atm or slightly otm put in the front month. Then even if the stock does nothing you won't lose much and could even make a little by the front month expiration.
Anyway, i don't think your idea is a terribly crazy one, but i'd wait and watch for signs that it and the market have decided to return home to Momma at 880. At present they are both on tour with the Earnings Circus.