My Options Play

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Quote from mhashe:

imo AAPL will hit $65 before pulling back. At the moment the path of least resistance is up.
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Do you care to elaborate why you're thinking so? What is your time frame for $65? AAPL looks so overbought ...
 
Quote from cnms2:

Do you care to elaborate why you're thinking so? What is your time frame for $65? AAPL looks so overbought ...
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AAPL is at all time high, there is no resistance levels on a company that is a leader in its field. With only 5% of the computer market and the christmas season on the way sales could be through the roof.

Earnings sometime in January.
 
OVTI is a sell into the gap. Bullish technicals? OVTI is doing what the rest of the market is doing and that is showing you a BLATANT price pattern that you should've booked already. Think like a trader, not an investor--you want to buy paper or sell it after such a price pattern trading into a known resistance area? Think big.
 
Quote from Cluseau:

OVTI is a sell into the gap. Bullish technicals? OVTI is doing what the rest of the market is doing and that is showing you a BLATANT price pattern that you should've booked already. Think like a trader, not an investor--you want to buy paper or sell it after such a price pattern trading into a known resistance area? Think big.
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You're right: it's risky to buy now. It's always risky to guess reversals. There is a clear bullish divergence from June's low, as well as it is a clear downtrend started end of 2003.

Depending on the time frame you like to trade you could see a different picture. I remember an author writing that it's great to trade weeklies, but you have to do it without watching the dailies. Dr. Elder was writing something similar: if you're trading daily charts, you have to resist the temptation to exit based on the intraday charts.
 
Quote from uninvited_guest:

AAPL is at all time high, there is no resistance levels on a company that is a leader in its field. With only 5% of the computer market and the christmas season on the way sales could be through the roof.

Earnings sometime in January.
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:) Joke: There is no resistance above me, but still I can't fly ... Another one: Newton discovered his law of gravity being hit by a falling AAPL ...

I like AAPL for all what it brought to us and to its industry, and I have a lot of respect for Woz and Jobs for bringing it to us.
 
Quote from cnms2:

You're right: it's risky to buy now. It's always risky to guess reversals. There is a clear bullish divergence from June's low, as well as it is a clear downtrend started end of 2003.

Depending on the time frame you like to trade you could see a different picture. I remember an author writing that it's great to trade weeklies, but you have to do it without watching the dailies. Dr. Elder was writing something similar: if you're trading daily charts, you have to resist the temptation to exit based on the intraday charts.
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Following up: it's widely accepted that when looking at multiple time frames you should use a factor of about five: monthly, weekly, daily, 60 min, 10 min, ... It's also noticeable that the shorter the time frame the tighter are the envelopes, maybe by a factor of 2-3. This makes option trading more suited for longer time frames so that slippage is less of a portion of the thrust, and delta is still large enough without going too deep in the money.
 
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