Saturday, July 26, 2014

Winner - Stretch Plays

I am not sure, if you guys noticed AAPL chart in the last post (Birth Of New Indicator).

AAPL had the Stretch Oversold, The Cloud was strong, within the zero zone. Guess what happened? Bounce and infact a new 52 week high.

Like I always do, the post contain the live charts at that momentum of time.

I do want to point out a couple of other options trades I picked last two weeks, based on this indicator, and the reason why I chose to play them.

1. BIIB calls- held it through earning (full risk trade) Was looking for a retest of previous high

Setup - Dark Cloud was BULLISH (down arrow), Pulled back on histogram. [DAILY CHART]
Trade signal - Reversal (eject), Histogram getting inside the Cloud. Signals a reversal on that time frame.
and provided a nice basing consolidation breakout.

Target was - Retest of the trendline.
Out - Over the target. HUGE WINNER.

2. Z calls- got stopped out once on the first Pullback, Did take the next Pullback trade.

3. WFC calls (not a huge trade yet profitable) - Same setup.

4. REGN calls (not a huge trade yet profitable) - Same setup on different time frame. REGN and BIIB happened on the same day.

Apart from the high volume optionable stock and etf list, I love these high priced extended weekly option tickers, with considerable ATR (average true range) compared to the closing price, and monitor the list daily for a good size drop and a setup.

Last week was amazing, HOPE for another amazing week.

There are more setups to come.

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