Friday, July 9, 2010


well..lots of action on DCTH today.

Enough to drive me out of the trade. The 4hr chart was my guide here and the 13 EMA was violated in a violent manner...volume was also high. Lately there had been a massive gap that occured in the MACD divergence...meaning that there was a big divergence on the MACD vs. the chart. Also recently this thing flattened out a bit. There is now a DMI cross that occured. While %R is only now retesting....this is just one indicator...

I had already taken profits along the way on DCTH and due to its low dollar nature now is a good a time as any to exit the trade entirely...any profitable trade is a good one and this was a really good one for me.

Here are the details of this trade (this includes the vigs):

06/14/2010 Bought 5 DCTH Jul 17 2010 14.0 Put @ 4.4      -$2,213.74
06/24/2010 Sold 2 DCTH Jul 17 2010 14.0 Put @ 6.4          $1,268.48
06/30/2010 Sold 1 DCTH Jul 17 2010 14.0 Put @ 7.5          $739.24
07/09/2010 Sold 2 DCTH Jul 17 2010 14.0 Put @ 7.1          $1,408.48

Total Profit: $1202.46  or 54% of original investment

Daily chart

4hr Chart

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