Pcln Rolling Over

Quote from Whistlingleaf:

Yes, I really have a 100 point spread - is that really any different from a 10$ spread (65-55) on a 70$ stock ?

450 doesn't even break support or go below the last 12 month lows.

In (last 12 months) 2011 PCLN was 450-ish in late June, Late August, end of September, and in December.

Is PCLN a company you see doing the same growth and having the same margins 3 years from now ? Momentum stocks work until they don't ... and then they really don't work.
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What kind of premium did you get on that spread that far out it must of been healthy
 
Quote from Whistlingleaf:

Yes, I really have a 100 point spread - is that really any different from a 10$ spread (65-55) on a 70$ stock ?

450 doesn't even break support or go below the last 12 month lows.

In (last 12 months) 2011 PCLN was 450-ish in late June, Late August, end of September, and in December.

Is PCLN a company you see doing the same growth and having the same margins 3 years from now ? Momentum stocks work until they don't ... and then they really don't work.
More...

I don't know your purchase price or when you'll be selling of course, but my rough calculations say you'll make a nice net profit on your Spread if PCLN ends up between 620-ish and 550.
That's almost exactly the range in which I'd be going Long, via Selling an October Bull Put Spread!
That's what makes a Market....
:cool:
 

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Quote from Alcibiades:

Watch out BELOW !!!!
Long term chart shows
double top with a break to
$600
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I thank all for posting and giving their views... as you can
see this was first posted May 9th and PCLN was at $720
... It seems to me selling the rallies may be a better strategy
than buying the pullbacks considering the Facebook debacle
as well as ALL the uncertainty in the markets having to do with
Europe and insider trading within our borders .
 
The 650-550 put spread cost me ~25$ so my max risk is 2500 and max gain is 7500. Right now I'm up about 9-10$ on the spread (900-1000$ profit.)

I'd probably would have closed if I was closer to 2k profit as I'm pretty bear-ish right now, but I'd take the profit and run. (I'm long alot of other put spreads and long puts.)

Unless we get QE here or in Europe I don't see the market doing well this summer.

PCLN will probably run up now as hedge funds have to shove their money somewhere ... we'll see.

Oh and I always try to get out at least 1-2 months before expiration.
 
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