9/25/12 - Taking a wee bit of a bath on these today, but I have until December so I will stick with it and trade around the position with weekly options. I will be looking for a snap back play off $315.
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9/17/12 - Here is my trade:
Now I will watch if for weekly scalp opportunities!
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9/16/12 - I am really bummed out I missed this $50 reversal rally when I was stopped out of my puts. I was so busy with AAPL and FB I just did not have the ability to take on another trade. I do wish I had just bought 1 call and forgot about it though. No biggie, I will be focusing on it now and looking for my next entries to profit from!
In the meantime, I will just pick up 1 December call tomorrow if the stock holds $340. The upside resistance is at the 200MA or $370-$374, so there is still plenty of room to capture some profits from this stock. The biggest challenge to trading options here is they are extremely expensive so you need to look for a better entry point before you pull the trigger. At this point, if you jump on, you are basically jumping on the caboose of this speeding train, so just buy a small ITM position.
Let's look over the charts for clues:
There was strong volume today on these weekly options
There was NO follow through on October options volume.
A pull back to $320 would be a much better entry point and I am thinking we could get that by the end of the week if the stock fails to take out $350.00.
Next earnings release is 10/18/12 so this stock could certainly hold price and keep on moving. Since I have missed so much of this rally, I have to be very cautious now.
Profits Up!
The donFranko