The market is telling me it is reluctant to advance this week. When I tried to ask questions, it just ignored me. Since the market is not returning my calls I am leaning a little bearish this week. Here are a few starters for this weeks lineup...(BTW- I used "Anticipating the Bounce II, Downtrending Stocks With a High MACD, and Screening for Potential Put Plays" as means to find bearish stocks. If you didn't know already, these are the only means I use to find bearish stocks...besides "DeltaTraders" Bullish Watchlist)

1. ASTE- Downtrend, rolling down from MA, good R/R*.
2. STN- Downtrend, rolling over from MA, filled last months gap, good R/R*. WEAK stock
3. RATE- Hitting resistance in a downward channel. Rolling down nicely today.
4. PNRA- Looks like it might be turning down from last months gap. Good R/R*
5. USPI- Watching this one closely. It is turning down from a $28 resistance, but mid-gap! Good R/R*
6. WFMI- Filled gap beautifully, rolling over, good downtrend, good R/R*

*(R/R= risk/reward)

I had a huge response to my casual mentioning of vega vs. delta. I also just realized a vast majority of our blog public might not have heard about this subject. I am trying to dig up an old article I wrote about this over a year ago to post on the blog. I think it might provide insight to traders about alternate factors of an option premium. I made a few calls, and hopefully I will have it available by the end of the day.

PS- FOR THOSE WHO HAVE ACCESS TO ADV. OPTIONS TRADING ROOMS, I LOADED A RECORDING OF THE PRICING & VOLATILITY SESSION. FEEDBACK IS NEEDED!!! GO CHECK IT OUT!!!

Posted by Option Addict on 8/21/2006 at 11:24 AM | Permalink