Over Extended

Yesterday’s idea on BAC worked out very well even gaping up slightly this morning.  Remember to manage the trades as you see fit.  Some may want to capture the gains of  better than 45% while others may wish to hold for the possibility of more.

Today’s idea is on VZ.  The stock has rocketed up breaking through resistance but seems to have overshot in the short term.  Consider the VZ 15 DEC17 52.5 Put weekly contracts.  Consider this as a very short-term hold as VZ settles back toward price support.

Recently Closed Trades

CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2^nd CSCO Trade 30%

Today’s Market Prep Note

For those of us that watch price action yesterday left us with more questions than answers.  Clearly, bearish candle patterns were left behind, but the majority of the indexes are still in up-trends.  Things that make you say Hmm?  As of now, only the QQQ is showing technical damage.  From the candle patterns, most traders would expect a big increase in fear, but the VIX seemed only to yawn in boredom.  There is an abundance of clues to suggest caution but also a sense that anything is still possible.  With weighty decisions still to be made in Congress this week expect the market to be very sensitive to the news cycle.  Plan your risk carefully and continue to watch for violent price moves in reaction to news events.

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Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.