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

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

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.