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Registered User
Joined: 10/7/2004
Posts: 2,126
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I wonder about the gap. What is your guess on filling that gap. You don't see this large of a gap often in a stock of this price.
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Registered User
Joined: 12/1/2004
Posts: 34
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I think its headed down to the next support level around 4.70. TSV, MS look horrible. May even take it all the way down past the 03 lows.
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Registered User
Joined: 1/3/2005
Posts: 28
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Back in the summer of 2002 I had a dog that was supposed to be putting out a large dividend, but just after I bought it the board of directors cut the dividend by 75% leaving me with my bare face hanging out  and shortly there-after the price dropped from about $15/sh to $5 per share. Just as I was about to sell it the price jumped back to around $13/sh. Then it proceeded to fall off to nothing, but it did close a good part of the down gap. I think that this maty be another such wild one. My indicators show that the stock is in a very definite downtrend and I would expect the stock to continue its downward plunge. However, I think you're dubius about the stock so to enable you to sleep well at night why don't you think up a good stock and option spread of some kind? For instance, you might sell, say, a thousand shares SHORT and buy 10 far out CALL contracts. That way your butt is covered, no matter which way the stock goes, and you stand to make a profit, too. Good Hunting!!
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Registered User
Joined: 10/7/2004
Posts: 2,126
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QUOTE (DETOVREA) Back in the summer of 2002 I had a dog that was supposed to be putting out a large dividend, but just after I bought it the board of directors cut the dividend by 75% leaving me with my bare face hanging out <img src="/training/images/emoticons/smile040.gif"/> and shortly there-after the price dropped from about $15/sh to $5 per share. Just as I was about to sell it the price jumped back to around $13/sh. Then it proceeded to fall off to nothing, but it did close a good part of the down gap. I think that this maty be another such wild one. My indicators show that the stock is in a very definite downtrend and I would expect the stock to continue its downward plunge. However, I think you're dubius about the stock so to enable you to sleep well at night why don't you think up a good stock and option spread of some kind? For instance, you might sell, say, a thousand shares SHORT and buy 10 far out CALL contracts. That way your butt is covered, no matter which way the stock goes, and you stand to make a profit, too. Good Hunting!!
Detovrea,
I have been checking into options as of late, but haven't had all the time i need to check all the ins and outs and to completely understand them. Now let me ask you; for the most part I trade bigblocks of shrs no less than 5000 and on the average 10,000 shrs.
How many contracts of calls will i need to level my trade and how much will that cost me?. Some stocks I trade are going in the $20 range so about $200,000 on the line of fire. Keep in mind that time for me is an issue since I for the most part trade huge percentage of my margin. I am what you call a high risk player. Momentum along with breakouts are my targets - long or short. Most days I am content with taking 0.1 of a point or leaving on the table .05 ( $1000 profit or $500 loss) Since I expose myself big, the only thing I can do to keep playing and to keep my profits is to enforced my stop loss quickly. If the trade goes again me shortly after i am in I get out and wait for another opportunity.
You can consider my technique scalping. Sometimes I ride the stock longer, but only if it jumps enough to get my trailing stop in. Most of the time I close my position or positions by the end of the day. So how can those options help me? Could you explain please?
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Registered User
Joined: 2/15/2005
Posts: 5
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Dear Big Block,
It sounds to me as though you are an extremely short term trader. In which case option strategies to hedge your positions might not be the avenue you are wanting to go, as the trading fees associated with their execution would paralize your profits. I know Interactive Brokers offers contracts at $1 dollar per, but this is the best Ive seen or heard of. Which would represent ten percent of your daily profit per 10000 share trade.However, if u think u have a real winner you may want to hedge yourself and hold the position for a while.
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