Tuesday, October 12, 2010

Trade: Long CHKP...winner

Get out of CHKP calls at a price of $3.50...it continues to rally but I employed the discipline of getting out at at least 30% gain...I need to do this more often.

Since I picked these up for $2.35 each and we had 22 accross the accounts..that's a cool $2,530 in profits.

Today I am looking at TSL and it is rallying hard and I would have once more been green on that trade...but the key is that I was already green on that trade and I didn't do what I did today with CHKP...just get out...move onto another opportunity...There is no shortage of opportunities...and that's the key to the trader's mindset.

Get out when the going is good.

Then find another party to join.

Here is hoping that CHKP is the first in a long string of a new mindset for me.

First off...Got orders to enter FCX today from Headley in the Sniper service.

BOT 9 contracts of OCT $85 calls for $6.65 each..this was a good entry point as it was retesting.

Some would say going long today would be a silly thing to do...with NFP coming out tomorrow and all that risk out there...and all the overbought conditions and resistance overhead etc.

Speaking of which...After NFP comes out tomorrow morning...I will have my own persepective on the jobs situation and I can truly say that it is unique in that nobody else talks about jobs like I will tomorrow.

I said fuck you there are really strong trends out there and many of them are worth a few points and that's all I am looking for now.

New philosophy is that I want only about 30% gains on these options...most of the time that is a very small move in the stocks like 3% or maybe 5%...depending on delta etc.

Anyway last night I was back onto the scans (hadn't done that in a while)...so in scanning I now go over a few scans...I still go over the daily scans for breakout and retest candidates based on accel bands and %R...then I do a few high volume scans as well.

Anyway, in digging I then look at things that are jiving on daily and hourly time horizons.

Enter CHKP...I liked the chart in that it had broken out was in a strong uptrend...and had a decent retest on the hourly chart already...(DMI kiss was in effect).

So this Am I waited to see the action on the 15 minute chart and my final arbiter is the 13 EMA...I like to see a close over the EMA then a confirmation close above that bar's high. We sort of got that with the last bar of yesterday closing right on the EMA...then confirmation this morning at the open. I waited for that fat green bar to pull the trigger.

BOT 22 contracts of NOV $36 Calls for $2.35...looking to exit at $3.05 ish



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