Breakouts

Is this stock on anyones radar? If not I am using this on my credit spreads class tonight. I see a breakout today on strong volume (obviously)...did anyone catch this? Leave me a comment or two about what you see and whether or not you would consider trading this. Who knows...could be the next big winner!



Saw NTAP early today. Waited till late in the day to make the trade and bought the Jan $40 call. Set an 52 week high on triple normal volume. Will listen to your class by recording in the morning.

I have trouble posting, but I'll try this again.

Gray

This is a trade that I would take and am considering the Dec 40 calls. This looks like there could be a good risk reward ratio in that if the price drops below resistance (the highest high since 2001)get out and if it goes up, let it run by increasing stops.

Danny K

I had it on a watch list I hadn't looked at yet tonight. I think that shows what I feel is one of my weaknesses as a new trader - too many stocks to watch, although I am getting better at scanning quickly for the things that are important.

John M.

CTSH breakout on crazy volume right at/after market close...will "be added to the S&P 500 Index, effective after the close of trading on Thursday, November 16, 2006."
- Honu Mike

An uptrending stock with high volume....I see a triple top pattern formed since July, which would be cause to be cautious on jumping into a trade.
I would need confirmation of solid break through resistance above 39.80 before considering entering a trade. If the stock breaks through with high volume, then I would be in...probably a Dec 40 call since past uptrends have taken about 4 weeks...with a target price of 46...an exit of about 36.50....
If the stocks continues it's uptrend...then moving up stop losses with the stock's move up would be my strategy.

Danuta

I've watched this all day. I Like the breakout on volume. Sometimes I get leery when I see alot of volume on the ATM that is expiring. Can't figure out if the market maker is keeping the price pinned up against $40 to pick up all the nickels on the BTC orders.
On entering this trade I'll use the entire premium as my stop loss when I calculate how many contracts to buy. Rules are rules and price is king.
Jamie

Wow, on Friday moring I placed a Jan $40 call on NTAP. Then I read this blog. Hmm, looks like I've tuned my skills into your world. That's a good thing!! Let's see if this one takes off.
Chad

I see a cup and handle formation with the cup forming early may to mid October. Very high volume to shakeout weak ones in mid July at bottom of cup. Handle formed mid October at a high of 39.73 so breakout happened Thursday on high vol. Held new support on Friday. Target is 14 points higher over the next 6 months. Since it is highly doubtful it would be staright up, I would buy 4 of the the Jan 45's(assuming $25,000 acct). If in one month the price goes to 45 or 1/3 of the expected move, the option price should move to about where the December 40's are today or 1.30 since volatility has already been sucked out with Thursday's earnings release. That is 160% profit and still a month left to run. No stop since options are OTM.

Post a Comment
...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT... ...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...

About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
My profile

Prescriptions Here!

Other stuff

Blogarama - 
The Blog Directory
Directory of 
Finance/Business Blogs Finance 
blogs Top Blogs Finance Blogs - BlogCatalog Blog Directory