OPEN: VIP Long Call JUL08 40
Market Trend: Long term bullish. Short term bearish. Deep correction finding support. Market forecast has a bullish cluster. Sentiment is still heading down (fear is still ruling the market.
Stock Trend: Bullish with a pull back to support.
Fundamentals: 1 green arrow.
Industry: Bullishly Neutral.
Support: $40.20 (MA & recent bounce) & 35.20 (next former resistance turned support)
Resistance: $45 (2 yr and all time high) & minor resistance at 43.00 (top of pull back channel)
Recently split 5 for 1 on 8/22/07
MACD and STOCH turned and gaining strength.
Plan:
Buy long call @ 8.50
On continued Strength: Sell the 45 front month Calls after a rally and weakening MACD and STOCH.
On Weakness: Sell the 40 front month Calls.
Exits:
(up) Follow option with mental stop loss If in June the stock is still showing strength then Roll to DEC or JAN09.
(Sideways) Stock price rallies to resistance and shows pulls back on weakening MACD & STOCH
(down) Stock price closes below 38.50 (~3% below support) Trade is dead – Exit.
(Down) Option closes at a 40% loss.
Filled at $8.20
About Tryumph Trader
I was born in the Catskill mountains of NY. The product of an Organic Produce Farmer and a Musician, you can bet that I had a very colorful and interesting upbringing. I became a student of Investools in April 2004. The spark of active Investing was ignited and I have been fanning the fire ever since. I was one of several students/group leaders who were instrumental in promoting the value of students getting together as a group for support. I am now the User Group Administrator for Investools [SWIM]. My husband is a CCIE (cisco geek). We have 4 amazing boys, 8yrs, 6.5 yrs, 4.5 yrs and 1.5yrs old. The older two are already learning how to trade ETFs. We currently live in Northern VA.
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