Possible Support
GRPN has been in a nice trend and looks to have a possible support. On a low cost stock like GRPN I will normally just by the stock but if your looking for an option trade check out the JAN 2018 5 Calls. The Jan series has a lot of open interest and the 5 strike has more then 21,000 of open interest.
Consider a stop around $5.45. The options are inexpensive but be careful not to over trade sizing this trade to large. Keep in mind GRPN is a rather volatile stock.
P.S. Yesterday’s trade idea opened with a one day gain of more than 8%.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
With the last 3-days of selling, traders are starting to wonder, Where is Santa? Gloom and doomers have been predicting the demise of the 2017 bull run all year. Now having strung together the first 3-day selling streak since August they are out in force predicting the market top has happened. Could they be right? Of course, even a broken watch is right twice a day. Before diving headlong into a pit of despair take a minute to examine the charts. The DIA and the SPY are still trending up! The QQQ’s are suggesting caution, and the IWM is holding a significant support. Also, take notice that there has been no panic selling and the VIX is not registering fear. Historically the so-called Santa Rally appears 7 to 10 days after the beginning of December. Stay focused on price it will provide us the answers.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
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.
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% • 2nd 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.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
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.
Bullish Breakout
Last week BAC produced and very nice bullish breakout showing significant strength. BAC has now pulled back leaving a hammer pattern at price support. Should price follow-though showing buyers stepping in at support BAC would be a buying opportunity.
Banks typically do well in a rising interest rate environment. Next week is the FOMC meeting and the market believe there is more than a 90% chance they will raise the rate. The overall market is trending up is currently looking a bit stretched so consider that if you decide to act on this trade idea.
Consider the BAC JAN 28 Calls. Consider scaling out with first target area between $29 an $30. Plan your trade carefully as there will not be follow up management instructions on this free trade idea.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
With the futures pointing to a 200 point gap up in the Dow on the back of the Tax Reform bill passage, it would seem the market is bulletproof. Even the threat of nuclear war seem to be nothing more than an annoying mosquito easily shooed away. Now the Dow has 25,000 in its cross-hairs and seems to have all the money and energy necessary to drive for that goal. However, I doubt the ascension to this plateau will be a smooth one. Friday’s full reversal intra-day whipsaw may be a clue to fast and whippy price action ahead. Big price action swings could be possible as we move forward making it very challenging for swing traders. The bulls are obviously in control, but Friday’s price actions should serve as a reminder that the bears are still here and they have been waiting to eat for a long time. Plan your risk carefully.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
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.
Consistency is Key
No matter if the market up-trending, down-trending or moving sideways to achieve lasting success consistency is key. I trade stock options because no matter the condition of the market there is opportunity to make a profit. Most options services like to hype the big percentage returns that options can provide but I prefer to focus on the consistency of my win/loss ratio. To prove that point Right Way Options has traded an account “live” in full view of the membership. Starting with $10,000 on Jan. 1, 2017 and trading small one, two or three contract positions. The win/loss ratio ranged between 65% and 75% winners holding only 5 to 7 trades at a time. Focus on consistency and money will take care of itself. Currently up more than 90% this year.
I’m not telling you its easy. Trading consistently requires hard work, determination, planning and discipline. The good news is that anyone can learn trade consistently. Trust me if an old carpenter can support his family for more than 12 years from trading profits, any one can!
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Yesterday the Tax Reform bill appeared to be a slam dunk and a vote to was expected to happen at any time. I mentioned yesterday the next couple weeks could be bumpy as all the political drama unfolds. Last night’s delay has the Washington spin machine at high speed with both sides churning out more and more dramatic rhetoric. Listen closely, and you can hear the dramatic music reaching a crescendo. One side vows to save the day while the other promises to fight to the death because of horror this bill will bring. Blah, Blah Blah! Unfortunately, the stock market is directly in the line of fire. Traders should be very cautious. Violent price shifts are possible in either direction so plan your risk accordingly.
Become a Member Today!
30 Day Trial Monthly Semi-Annual Annual
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.