Another Day Another Dollar

Happy Thursday...I think.

Thanks for your participation in the activity on exits, and for creating a profile on mybloglog. I will have a post later this afternoon with four different charts to discuss exit strategies. For those who sent them, you efforst are appreciated.

I also want to give a shout out to Sarah. I know the IPS trade really sucked, but in a takeover or acquisition, the outstanding options are settled for nearly parity. Since any expectation of this stock increasing or decreasing beyond the takpeover price is crushed, the options lose all implied volatility(expectation). If you are like me and trade out the money options, you actually lose big, even though the price moved big. What a trade off for being right, huh?

Sarah, try not to let it get you down. We'll hunt for the next big winner. You'll recover from this and become a better trader now that you've gone through the experience.

Recommendation: Leave a comment for Sarah, give her a reason not to quit.

Long: MLM, AH...whoa!

Short: Casinos???

Sarah's not quitting. She's going to go get a White Mocha and tap into the power of the strong rebound.

Then she's going to take a look at CME for a flag break. The bottom to fall out on BBY. NVT to break higher. CNS to rocket to the stars. It's a wide world of opportunity and Sarah's an option addict. No one's worried about her quitting.

Everyone should be watching AKAM for a flag. I handed you the head and shoulders break. Now i'm giving you a second chance.

Keep an eye on GVA had bad earnings good forecast and if it brakes 63 ish with volume should move up 8 points.

Who would like to volunteer to help me post my picture on my profile, got it far enough to my blog but can't get it to move from there. I tried several times to fail, it is frustrating me.
I thank you in advance

David S

On CME doesn't 510 look like pretty strong support?

Is it my imagination or are people removing themselves for "addict" list?

Sarah here's what you need to do. Go for a run, or walk, or climb everest, or something.

Next take a deep breath and feel the love. EVERYBODY on this site has been through what you've gone through and we know exactly how you feel. But we keep coming back because we KNOW the winning trades are sitting there staring us in the face... we just need to acknowledge them.

Then you need to go out and find a radioactive spider and piss it off enough to make it bite you. Then use your spidey senses for the betterment of humanity (aka: Option Addicts.) Remember, we're doing this because we like it. The thrill of the hunt.

Brett, TSO looks determined to make your $112 target in one day. Watch for it, buddy. I see your BBY and raise you an ISRG. LCC keeps on plummeting.

ICE ICE BABY- As I right this the price is 134.50 up $7 plus.

My stangle looked like death yesterday. I sold the PUTS about a half hour into the open for a .10 cent loss EVEN though the price had dropped $5 from when I bought them.
My calls had so much IV sucked out of them that they were worth 1.30 and I had paid 3.40 for them.

So I went from being up 200 before earnings to down 1000 plus at market open.

Right this minute I am up about 150 on the whole trade and would like to heare what the group thinks I should do.

What is the target or sell price on ICE?

I originally said I needed a 10 point move for this to work and it has went from 123 to 134.50.


Thank you for your comments on the conviction to let trades see their targets and beyond rather than taking small profits along the way. Although, I feel I adhere to the principle, I am going to print out the comment to read often and especially when times get a little tough.

Thank you everyone! Oh, you too Jeff.

Support is meant to be broken.

Just kidding. Yes, $510 is strong support, but all that means to me is it may take more than one ramming to get through it. My target is $470, so until my ATR is hit on a closing basis, i don't mind these little bounces.

Chris, keep flying the friendly skies. This LCC is incredible.

Hey Jeff, is someone taking over AH? I got in 4 days ago thinking i was too late on the cup and handle breakout. Wow.

D'OH!!! I looked at AH 3 days ago and it sat at the perfect entry point. I said "This is perfect. I must buy this." I did not.

Catherine, go get the car.

I've GT in my 401k and it just pulled back to a very nice entry point for some options. They are relatively cheap and Mr Scholes tells me a July $30 should double in value by the end of June. My target is $40 on the stock.

Hey is anyone else excited about the fact that we no longer have to put in the secret agent code to post? This is almost as exciting as MLM.


No more word verification???


I felt like such a dumbass when I looked at my settings and saw there was an "off" button.

Go AH and MLM.

Jeff, come on, is that the only reason???

Wow, no word verification? That was like a speedbump for my posting. I feel like a new man.

I'll say it again: CNS TRADE OF THE YEAR.

Wow, go AH and MUR.

My account is actually in the Green (First time in a while, up 14% overall for current holdings).

Brett -- by selling off 2/3 of a winning position, I may be missing big upsides, but I have funds to trade another day. And I leave behind 1/3 to ride higher (so as to not to miss the wave altogether).

It's a bit conservative, but I'm following my rules and still recovering (mentally and account balance wise) from Feb...

Jeff, I had to try a post to see if it was true that I did not have to type in that those crazy letters that half the time I do wrong and my post does not go through. I am with you Chris and Brett on this one...Excellent Jeff.
How if I can just figure out how to add myself to the blog community. Tim had to help me to get our picture up ...and I used to be good with technology.

Now if only you were good with a zoom...


Why do think CNS and AKAM are so good? Is it because of the flags? I'm new at this. I understood we were to ignore flags formed by earnings. Do you know different? Please tell me what's what.


Who told you to ignore flags formed by earnings? You need to do your own analysis on CNS, though i personally see a cup-and-handle half full of gold.

As for AKAM, i see a great flagpole and a nice bounce here before a potential leg down.

Trade what you're comfortable with, not what some ranting idiot on this blog (read: me) tells you to.

(Mental note to self... Jeff Kohler... Giraffe.... Jeff Kohler.... GIraffe Now where's the quicksand?)

Brett, what is it with your zoom fetish. The girls I go with don't need no stinkin' zoom. Actually I thank you for your comment on our photo... I feel the world is a better place now that you can actually see us.

Hey Brett,
I'm pretty sure superman doesn't care if the bullet coming at him is a .22 or a .45 .... but are you not concerned about how thinly trade CNS options are? I was looking at the Sep 50 and it has open interest of 60 with no trades today. The spread's not too bad but still, I don't want to see Catherine coming at me with the car again.

PLCE seems like a real low risk entry since it virtually bounced off the apex of the triangle and now sits below the triangle break from a few weeks ago. The bounce also forms a lower high. The only reservation I have is that today’s volume is a little lighter than it was on the upside. I’m thinking that I shouldn’t be overly concerned with the bounce volume.

Any thoughts?

no, i'm not concerned.

When it's the trade of the year, and you spot it early, others will join in later.

I don't like PLCE. Mind you I don't like artichokes either, but that doesn't mean YOU can't eat them. If you look at it, the triangle already met it's destiny when it dropped below $50. If you look at the volume since then, the black lines are ALL longer than the red lines. In my tiny little mind, this smells more like a reversal than a re-trace.

But I bought TSO over earnings.

I will probabably short PLCE by the end of the day (see my earlier post). I see it as bouncing down off diagnal resistance.

Also looking at BYD for a put. IT is rolling over and LVS and Wynn are getting smushed.



I thought I heard that about earnings flags from one of the dynamic duo on the market cast. I don't mind being wrong if it helps me be right in the future.
Thanks for the answer.



Can I settle the score?

Since the outcome of a flag is supposed to repeat the preceeding move, if you take one after an earnings explosion, you have minimal chance of repeating this move. However, if the earnings bump was a normal move relative to recent activity, it has a higher likelihood of repeating this move in the future.

Does that help?

Well, I finally figured out how to get my picture on blogger but for some reason my name does not appear next to the picture. Can anyone help. Mine is the picture with the BIG fish!

Sean M.


Yes that helps, though there is still a lot of room for interpretation there. Thanks,


Remember this is not a science, it's more of an art. Sort of like interperative dance with money.

Thanks for the support and laughs(c&c). I'm not quitting, just mad as hell. But I'm fighting and on to my next trade,just got filled on ERSX. Let's see how this one goes,bought ITM this time.

Thanks again,hopefully everyone can learn from my pain.

My gift to everyone today... after a rather weak week... go grab yourself some POT. Took the diagonal bounce yesterday, confirmed today on strong volume both days. I own this stock in my 401k and it is a top performer.

Brett, I could not agree with you more about AKAM. I'd like to see that mother retrace to about 46.60.

Also, it looks as though AKS is broke out today. Last 2 flag moves average $5.20 and take about 4 days to reach the target.


where in the hades is my picture?

This is the first time I have been able to post to the blog.
MLM - great pick. Took my profits and ran today. It seems to pop up and then go flat. Still in AH. WOW !! RS looks good too. Been flagging and now legging up just like it has in the past. Been trading it for the last month.
Stopped out of TSO today for a small loss, but looks like a good entry point if it heads up tomorrow.

Thanks again for all the time you put into helping all of us. I read this blog every day along with listening to Market Cast.

GS, X, GLDN looking pretty good too.
You have awesome picks. Also thanks for the videos. I am learning a lot.

Michelle and Randall

Wish I could accomplish what The Master does and post a youtube video here but this will have to do

Sarah... I found a video that matches your epic battle with IPS today. Go to Youtube and search for "McCain I love you." I can just pictuer you arm wrestling with IPS and thinking you're victorious, only to have your prize snatched away.


Chris, I noticed you said STOCK on POT with the ATR so high it is difficult to make the R/R work with an option. I will have to view that McCain video.

Bob (....and Pam),
You are quite correct. I have POT in my 401k so it's an investment and I haven't really looked at the options. I know they're expensive, but this stock moves in big numbers.


Thanks for the McCain tip that sums it sum exactly. Very funny,with a big laugh. Just what I neded.


CNS: I see the pattern well enough, although I'm trying to figure out what you see that will make this a "TRADE OF THE YEAR". I'm not disagreeing, I'm trying to learn what you are seeing that I can't/don't/won't let get the picture. Thanks for helping us learn from you being "brilliant"!

Brilliant! Always reminds me of those Guinness commercials!

I am somewhat kidding with the 'trade of the year', but i think it's going to be a huge winner nonetheless. The lack of volume today worries me, but i LOVE theses cup and handle breakouts and i have been extremely successful with them this year.

What's so interesting is how these patterns work in the market. First I was seeing triangles everywhere...then i was seeing flags everywhere...then head and cup and handles. It's amazing how you find them in bunches, and it's really great practice to trade them in bunches. The only way to master these patterns is to trade them, and it seems you get to practice lots of similar patterns at the same time.

Chip, you look a little like Brian Urlacher. I'm a huge Bears fan.

Guinness? Did you say Guinness? Yum Yum!

Thanks for the perspective on CNS and the cup and handle formations, etc, that helps, at least now I know I wasn't missing something really obvious...that is except for the cup and handle formation itself! :-0

I did get in with a small position (read as: all the money I had available) near the close.

I guess I'll take the Brian Urlacher comment as a!

Jeff et al,
I had so much trouble posting with that word verification thingie that I finally gave up. Thank you for fixing it! 'Fonely I can fix my trading this easily!

I'm sitting here reading how all of you (okay, most of you)are making boatloads of money on all these tremendously popping stocks most of which are from earnings. I see you taking entries which look so high to me yet they manage to go higher.

So then I pick a couple and what happens? I have now just bought at or near the highs and I watch as the positions erode a little bit each day until I ultimately bail out.

What is wrong with this picture??
Obviously I need help on entries (and maybe exits too).

Thanks, Jeff, for all you do. I look forward to seeing you in Utah when I come out there in a couple of weeks.


I know I am a little late on the post, but I don't have the luxery of hanging by the computer all day.

Sarah....I just want to give you a big hug and tell you everything will be okay. Your analysis was on target and you are good at what you do. Consider it part of the did learn something, right? are awesome !!! Even though I don't get to post during the day like some of the others, i do look forward to reading your posts. It is nice to know that hard work will pay are proof !!! So thanks.

Sarah, Glad to see you still have that fire in the belly! You can do it! Have a good weekend!

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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.
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