RENN-these Chinese plays I’ve been wrong so far and I missed the opportunity to change that Friday morning with the RENN panic at the open. I was short overnight and the plan was to close out into a panic but I was busy watching GS and the panic on RENN was short lived that I missed it. Turned into a r/g play and instead of risking it running to 10 I decided to cut my losses as it crossed 9. Traded with calls: in at 6.30 out at 6.
GS-this was the money play right here. Bought calls on a r/g play on Thu at 14.60 with the idea that it was beat chart, target was 135 and, well 135 came a lot quicker than I expected. Sold half my position a little after the open on Fri at 16.25 when it started its morning run and was inching higher. Closed out the second half at 16.55 when the underlying was trying to cross 135 again—my thoughts were that it may not make it, be a double top and therefore come back down…also it hit my target to exit already so time to play by the rules and be disciplined. It actually had more and I think I left another $1 per contract on the table, but I’ve trying to pull away from that mentality of missed potential—at the end of the day the only thing that matters is real profit, not potential. And I banked some real profits on this one.
WLT-yet another nice tip from the chat at www.investorsunderground.com. Came out early in the morning when WLT was actually red on the day. I hesitated in buying at first because I was trying to see if the underlying was putting in a double bottom or dead cat bounce…then on the second bottom (114) it bounced hard and went r/g. I waited for the underlying to give a pullback (support at 117) then I got calls at 22.85. After that it was off to the races with this thing. Interesting to note, if you played the news on this one you would be hurting—the day before the CEO resigned and I’d assume a few folks were shorting this pretty hard, thus the short squeeze after the morning weakness. When the underlying hit the high for the morning at 120 it pulled back down to 118 and I certainly felt the move in my option profits. I set a limit order well above the spread with the thoughts that the underlying price would head back up towards the 120 area. Sure enough it came back and I was out 25.85, about 90 mins after opening the position. I actually wanted to only sell half the position but I forgot to edit my original limit order before I went back to work, so I was a little surprised when I got a confirmation email showing I closed out the position. A little disappointed to see that I missed out…oh well. Both GS and WLT look like more to come, probably look for another entry opportunity for either a daytrade or overnight this week.
COH-This was actually one I was looking at Thu night as a potential r/g play for Fri. I missed it with RENN WLT and GS keeping my busy but towards the end of the day it was looking like it might be a good candidate for an overnight hold (looking back WLT had the same set up, didn’t take it because I basically stopped looking at it after the morning). COH ran up all day, from under 64 to just under 66 when I saw it in the afternoon. Then it pulled back and started inching toward the high of the day. I bought calls at 11.30 anticipating a move through the day’s high and a cross of 66, which it did about 30 minutes before the close. I’m a little nervous on this one since its an overnight over a long weekend after the market’s been up big for 5 days straight…basically hoping the profit taking/pull back on in the market doesn’t happen till after I close this position. Thoughts are the same as usual…sell into strength, possibly wait out weakness if it looks like it finds support…since this isn’t a penny I’ll need to watch the market futures as well as premarket COH before the open to get an idea of what I’ll do. Best case is that this gaps up a little, comes back to previous day’s close then squeeze.
Follow the rules: Cut losses quickly; Don't overtrade; Take profits/sell into strength; Don't chase, watch for the pullback; Have a plan and stick to it
View my other posts/give me some advice at http://part-timepennystocktrader.blogspot.com/. Follow me on twitter @BNGESG.
GS-this was the money play right here. Bought calls on a r/g play on Thu at 14.60 with the idea that it was beat chart, target was 135 and, well 135 came a lot quicker than I expected. Sold half my position a little after the open on Fri at 16.25 when it started its morning run and was inching higher. Closed out the second half at 16.55 when the underlying was trying to cross 135 again—my thoughts were that it may not make it, be a double top and therefore come back down…also it hit my target to exit already so time to play by the rules and be disciplined. It actually had more and I think I left another $1 per contract on the table, but I’ve trying to pull away from that mentality of missed potential—at the end of the day the only thing that matters is real profit, not potential. And I banked some real profits on this one.
WLT-yet another nice tip from the chat at www.investorsunderground.com. Came out early in the morning when WLT was actually red on the day. I hesitated in buying at first because I was trying to see if the underlying was putting in a double bottom or dead cat bounce…then on the second bottom (114) it bounced hard and went r/g. I waited for the underlying to give a pullback (support at 117) then I got calls at 22.85. After that it was off to the races with this thing. Interesting to note, if you played the news on this one you would be hurting—the day before the CEO resigned and I’d assume a few folks were shorting this pretty hard, thus the short squeeze after the morning weakness. When the underlying hit the high for the morning at 120 it pulled back down to 118 and I certainly felt the move in my option profits. I set a limit order well above the spread with the thoughts that the underlying price would head back up towards the 120 area. Sure enough it came back and I was out 25.85, about 90 mins after opening the position. I actually wanted to only sell half the position but I forgot to edit my original limit order before I went back to work, so I was a little surprised when I got a confirmation email showing I closed out the position. A little disappointed to see that I missed out…oh well. Both GS and WLT look like more to come, probably look for another entry opportunity for either a daytrade or overnight this week.
COH-This was actually one I was looking at Thu night as a potential r/g play for Fri. I missed it with RENN WLT and GS keeping my busy but towards the end of the day it was looking like it might be a good candidate for an overnight hold (looking back WLT had the same set up, didn’t take it because I basically stopped looking at it after the morning). COH ran up all day, from under 64 to just under 66 when I saw it in the afternoon. Then it pulled back and started inching toward the high of the day. I bought calls at 11.30 anticipating a move through the day’s high and a cross of 66, which it did about 30 minutes before the close. I’m a little nervous on this one since its an overnight over a long weekend after the market’s been up big for 5 days straight…basically hoping the profit taking/pull back on in the market doesn’t happen till after I close this position. Thoughts are the same as usual…sell into strength, possibly wait out weakness if it looks like it finds support…since this isn’t a penny I’ll need to watch the market futures as well as premarket COH before the open to get an idea of what I’ll do. Best case is that this gaps up a little, comes back to previous day’s close then squeeze.
Follow the rules: Cut losses quickly; Don't overtrade; Take profits/sell into strength; Don't chase, watch for the pullback; Have a plan and stick to it
View my other posts/give me some advice at http://part-timepennystocktrader.blogspot.com/. Follow me on twitter @BNGESG.
