Thursday, September 30, 2010

Trade: Long F...winner

I put in a trade trigger during my time in Paris for this to get out at $1.70...this was because these were weeklies and I didn't want to be in them for a long time and the market has been choppy.

Across all the accounts this was about $1,000 winner as the trigger was fired on the 21st of September...not bad for 5 days.

Not much per account but overall it was a good trade.


In my scans today I picked up a high volume rise in F...The uniqueness of this move is seen on the hourly (and even the daily) chart. The volume was big today in Ford and the bollingers on the hourly chart had gotten really tight and in sinc with the accel bands I watched the 15 minute chart after the breakout to see if I could get a retest to get in. I watched it come towards the 13 EMA and bounce and while there wasn't a true retest at that stage, I figured it was decent enough to get in at that point.

So I played the weekly options expiring next week (issued today). Picked up the Sep 24th $11 calls for $1.50 each.

Unfortunately I had a meeting and couldn't wait for a true retest...which did happen just after I left my desk...(of course) so I probably missed out on a dime here...but that's the breaks when you have a stupid day job.

A decent target for this is the 80 period daily upper bollinger band...if it is launching it could hit that by next week...that stands at 13.40...So from my purchase price it will probably net me $1 per contract...66% winner wouldn't be bad at all.





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