My Options Play
- Thread starter Multioption
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LYO as a short candidate:
Defensive stop zone $27.80-$28.30
Target zone $24
Underlying price $27.19
This trade is not for the risk averse.
EDIT: As you may have already realized LYO cannot make it in this world netting $10 million per quarter--hurricane or not. However, lining up the trade one should place more emphasis on technical readings then fundamental analysis at this juncture in time and price. Also a word of caution if you like them deep and tight b/c LYO does not offer this to the trader. It will end up being more of a position trade for you. A good thing to watch is the spread at extreme price levels according to their timeframe--10min, 60 min. etc. I'd want to pay close attention to the 1200-02 level in S&P index monday before adding to or reversing this trade.
Defensive stop zone $27.80-$28.30
Target zone $24
Underlying price $27.19
This trade is not for the risk averse.
EDIT: As you may have already realized LYO cannot make it in this world netting $10 million per quarter--hurricane or not. However, lining up the trade one should place more emphasis on technical readings then fundamental analysis at this juncture in time and price. Also a word of caution if you like them deep and tight b/c LYO does not offer this to the trader. It will end up being more of a position trade for you. A good thing to watch is the spread at extreme price levels according to their timeframe--10min, 60 min. etc. I'd want to pay close attention to the 1200-02 level in S&P index monday before adding to or reversing this trade.
Good thing that you're not recommending options play on LYO. This stock is range bound with no end in sight!
Here is my thought about LYO options: they are very tradeable and someone is probably eyeing up the march 30 calls for a sale but i don't have the skill level to trade LYO options. This is why i stick to the underlying. It was brought to my attention some time ago by a friend and i have been studying and trading it. I would like to see LYO move down from this price level and avoid trading back into the $29-$30 range. But life does not work this way and neither does the market as we all have come to realize.
This is an end of day update. Like in yesterday's example, again a MACD-H bearish divergence was confirmed. Depending on how you manage your trades (stop loss, target exit, time frame) this could've been a profitable trade or a breakeven one by the end of the day.
I'm with the crowd that thinks that MACD divergences are very strong signals in all time frames.
Do you have Futures trading video and manual by Larry Williams on how he made $1M from 10K, and within 12 months? He stated some probability of occurences in SP500. I want to take a cue from that...MACD is a good indicator and its divergences are more reliable than Stochastic. However, MACD is best used in gauging the market. That is, if MACD is pointing down; traders should beware of going long lest they jump infront of a crashing airplane. MACD should not be used for entry/exit point as the trader may get burnt more times than s/he could imagine!
my feeling exactly- the stock hasn't been near 22 since May 2005. IF we have limited amounts to position in the markets it behooves us to deploy same in the direction of the biggest bang for the buck within the framework of our own risk quotients and the like.
I write this because that is something I DID NOT do in the past and would tie up funds in positions with limited rewards while watching much sweeter opportunities go by the wayside!
Ice
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