Post feedLooking to take a stance on the market? Me neither.
I must say I do not trade the market (typically). There are times when it is a no-brainer to buy calls or puts on a trend, but how often do you see a no brainer trend? As I fell out of bed this morning to turn on CNBC, the awakening results made me laugh. What a nice follow up to what could have been a nice reversal in the market. I must admit, the double bottom formation blinded me from the reality of my surroundings. We are still in earnings season! So this is a great example of why it is so rare to find index positions in my account. Is there any rationale to the way the market moves? Like I mentioned earlier, this is why I wait for the no-brainers.I mentioned yesterday that I was watching a few stocks that came out of my search. All of them bullish. So I added a few trades...
Symbol: LVS
Trend: Uptrend, Bull Flag Pattern
Target: $77
Trade: Bought Aug $75's @ $2.10
Why: Earnings on the 31st, IV increasing, anticipating a break of this flag. I doubt this one hits my target by the 31st, but a good surge of Implied Volatility and a decent move upward ought to yield a decent profit.
Symbol: LRCX
Trend: H&S Reversal Pattern
Target: $32ish
Trade: Aug 40's @ $1.60
Why?: Enormous volume confirmation on todays support break.
I also closed out of my position in GOOG today. I was riding the volatility wave up to earnings. My wave ended up being less than a ripple. However, my Sept 450's closed out at $8.80, when I purchased them at $8.20 about three weeks ago. What is even more interesting is that the stock has dropped about $12 from when I purchased these calls. This is why I love options!
