My Options Play

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Quote from pattersb:

Maybe Stupid. It fallls in line with my thinking. Stocks fall as quickly as they rise. (Especially, if they already are bottom feeding)

CECO is up 30% for March... 30%! People have to take profits, they have to ... If it gives back 30% of that 30%, 900 will turn into 3000, the most I'll lost is 500. I like my odds, considering i've seen some after-hours trading for under 41 already.
The only thing that concerns me is the volume ... HUGE volume today on this one.
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keep thinking that way and buying front month OTMs options when you do-- and then see how it goes for the next 6 months. :confused:

IF you really have conviction about CECO "having to" retrace based upon "profit taking" why not buy some deep ITM puts - only in smaller size? At least if you are 'correct' about "profit taking" you will realize some profit!
 
well, I'll be the first to admit, I have some distance to travel before I arrive at a profitable strategy that works consistently over time. In time, I'll need to adopt more of a long term approach like the one your suggesting. So I appreciate the suggestion.

At the moment, I'm simply trying to find low-risk trades that I can watch which will allow me to continue to feel-out the markets.

I thought I'd risk $500 dollars to make $2100, not particularly intersted in watching this company for more than 5 days...

The SEC dropped an investigation (the instigation barely caused a ripple in the price) and it was upgraded to Mkt Perform from Under Perform. It ran up 15% today, I think that was excessive. Look at a 3 year chart on this sucker, it's a bit of a laggard. 42 seems to be its resistance to boot...

So my thinking goes anyway ,...
 
Quote from pattersb:

well, I'll be the first to admit, I have some distance to travel before I arrive at a profitable strategy that works consistently over time. At the moment, I'm simply trying to find low-risk trades that I can watch which will allow me to continue to feel-out the markets. I'm risking $500 dollars to make $2100, and not particularly interested in watching this company for more than 5 days...

The SEC dropped an investigation (the instigation barely caused a ripple in the price) and it was upgraded to Mkt Perform from Under Perform. It ran up 15% today, I think that was excessive. Look at a 3 year chart on this sucker, it's a bit of a laggard.

So my thinking goes anyway ,...
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I think it could trade back down to gap support - maybe - but that may not be enough bang for the buck on front month OTM puts. IMHO. So unless you think it will "fill" the gap - i.e. that it is not a breakaway that preages higher levels first--- ITM puts is the way best way to trade your premise as stated in your first post!

b.t.w why do you view OTM front month puts as "low risk" -- if I get your drift correctly as stated above? Do you actually mean "low cost"?!
 
Quote from pattersb:

well, I'll be the first to admit, I have some distance to travel before I arrive at a profitable strategy that works consistently over time. At the moment, I'm simply trying to find low-risk trades that I can watch which will allow me to continue to feel-out the markets. I'm risking $500 dollars to make $2100, and not particularly intersted in watching this company for more than 5 days...

The SEC dropped an investigation (the instigation barely caused a ripple in the price) and it was upgraded to Mkt Perform from Under Perform. It ran up 15% today, I think that was excessive. Look at a 3 year chart on this sucker, it's a bit of a laggard.

So my thinking goes anyway ,...
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Unfortunately, profit potential is directly proportional to risk in this business. You could buy OTM options but make sure you allow the underlying enough time to move, so '60-90 days' out is recommended.
 
Quote from iceman1:

I think it could trade back down to gap support - maybe - but that may not be enough bang for the buck on front month OTM puts. IMHO. So unless you think it will "fill" the gap - i.e. that it is not a breakaway that preages higher levels first--- ITM puts is the way best way to trade your premise as stated in your first post!

b.t.w why do you view OTM front month puts as "low risk" -- if I get your drift correctly as stated above? Do you actually mean "low cost"?!
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Thanks for correcting me... LOW-COST, not low risk. 15 contracts, for $900 bucks is bargain-basement... $500 is not much to lose.


Well, I'll show my inexperience by admitting that I am not familiar with "Gap Support". My thinking was/is far less abstract. The news was not good enough to justifya 15% gain. Although half of the 8million exchanged shares today probably disagree.

If it gives back 1/3 of that gain, I make 3x the money. The most I can lose is $500.:)
 
Quote from pattersb:

Thanks for correcting me... LOW-COST, not low risk. 15 contracts, for $900 bucks is bargain-basement... $500 is not much to lose.


Well, I'll show my inexperience by admitting that I am not familiar with "Gap Support". My thinking was/is far less abstract. The news was not good enough to justify 15% gain. Although half of the 8million exchanged shares today probably disagree.

If it gives back 1/3 of that gain, I make 3x the money. The most I can lose is $500.:)
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taking a quick glance at the chart it looks like CECO broke out of a large triangle that has been forming since '04. It could indeed sell-off in order to re-test <40, or keep going and re-test at a later date. The "gap " today is not that large, and CECO is a volatile stock; but it looks like a breakaway/pattern gap for sure - so read up on whether those are likely to 'fill" forthwith.

sounds to me like you have a clear plan and a basis therefor; thus you should not let anyone influence your decision to execute it.

bonne chance
 
Quote from big_jdez:

Nice day for SNDK as well as all the semi's.

How are you're options Multi?
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SNDK and LCAV positions are likely to be closed this week. Will love to see LCAV back to 50 or 51 today for 4K+ profits....will update!
 
Update:

BTO: 3 SNDK May 62.50 Call @ $2.65 each

STC: 3 SNDK May 62.50 Call @ $5.70 each

Profit: $915.00

BTO: 8 contracts of April SNDK 55 Call @ $5.80 each

STC: 8 SNDK April 55 Call @ $9.50 each

Profit: $2,960.00


I'm holding 25 LCAV June 50 Call bought @ 2.55
 
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