This is a new one and a good one and we will look at it in the context of a stock that has made the move we wanted and is pulling back. There are quite a few report plays in that position right now. The primary consideration on a pullback from a good move is […]
Yes it would be good for any non-tax account, and that is just one reason we like the idea of the tax-free investment accounts also proposed by Bush in addition to the elimination of the dividend double tax.
There is a 3-day float with a stock transaction. Option transactions clear in a day, stock transactions in 3 days. Thus you can use the ‘float’ to buy a stock that is going to pay a dividend three sessions ahead of the record date, sell it the next session, be locked in for the dividend […]
Much depends on the type of market we are in as well as the strength of the stock. While some stocks have continued to move higher after brief respites, the majority of stocks continue to struggle in the ongoing bear market. When they get to the target we tend to take the gain and then […]
We always like to see strong volume on any move as that shows there is a lot of support for it. That gives it more likelihood it will hold. As you have pointed out, what happens if the price is hit and the volume is not there? Extrapolating is necessary. If it is a strong […]
We use them, we just don’t apply them in a vacuum. We debated and debated putting in stops in the reports because each person’s investment goals are different. For example, on a stock play in a stock that is performing solidly over a period of time but then suffers some selling pressure we might be […]
Good questions. The strike price determines if you make money or lose money at expiration. If the strike is $12.50 on a call, if the stock price is greater than 12.50 on expiration the option’s value will roughly be the difference between the stock price and the strike price. For example, if the stock is […]
We look at several factors going into a play to determine the target price. Primary are support and resistance levels if any, but we also look at the type of pattern and the type of market we are in. We always like to have a play that we can enter (upside or downside) and be […]
A continuing downtrend is one where a stock has broken an upward or lateral move, tested that breach, and is typically moving down the short term MVA (10 and 18 day MVA). Remember how stocks that breakout and move up in an uptrend tend to use the 10 and 18 day MVA as near support? […]
We usually are buying puts when we play the downside as we like to trade options on many plays as our total risk is defined going into the trade. Thus on a downside play that has a ‘buy point’ that is referring to buying the put option. We have looked at changing the ‘buy’ point […]
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