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Registered User
Joined: 6/15/2008
Posts: 1,356
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breaking out,
large call volume.
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 Gold Customer
Joined: 4/20/2009
Posts: 51
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Thanks for that- I got a little piece...
Have you got a target in mind, or wait & see?
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Registered User
Joined: 6/15/2008
Posts: 1,356
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After I get a buy on the Dailay graph, I switch to hourly and even lower time frames and monitor for sell signals.
I search for stocks that have a quick increase in momentum, upon which I trade naked calls or puts. I usually don't hold longer then a day or two.
I got the VLO August 18 calls, yesterday at $0.33, now trading at around $0.47. following VLO on hourly see below, shows me it has broken resistance at 17.85. I will let it ride until the price gets back into the green Bollinger bands, or start breaking below it. I want to gte out as soon as the upward momentum decreases, because that will eat into the call option pricing. Most likely I will exit today. having a nice profit, and if it drops tomorrow a bit, my profit will be gone. Doesn't mean that VLO won't continue moving up, but I don't want to sit around for any pullback.
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Registered User
Joined: 6/15/2008
Posts: 1,356
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That's it, I'm out VLO.
broke the TDST-resistance at 17.84 came back, tested it, at 2PM. I stayed in the trade, cause I got a snap back up signal on the 30min chart see below.
Decided to bail at 3:35, looking like a faile new high setup, while the SP500 5min chart already made a new high. solde the calls at $0.46 about 40% profit.
30 min chart :
5min chart :
SP500 5min chart :
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Registered User
Joined: 2/1/2010
Posts: 37
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I had a limit order to buy at 16.5 area, but couldn't resist myself and got in on August 2nd around 17. Look at the weekly chart, it has a very nice trend line support going back to late 2002. So far so good. If it drops below 16 area, will bail out.
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