Here's the chart of GLW:
After we got in, the stock pulled back and put in a higher low - which is great! I don't mind pullbacks, you gotta expect them, but after they put in a higher low, then that's a good indication that the bulls are going to keep pushing things up.
We had earnings come out today in this stock. I don't know if the earnings were "good" or "bad", all I know is that the reaction to the earnings was positive. The lesson in the last sentence - you DON'T CARE what the earnings are, all you care is how the market REACTED to those earnings.
Anyway, the market reacted quite positively to the earnings and popping the price right up to our target of the $20.90 zone. This was a little under my line - but my line is just an AREA, and once you get a nice pop like this and you get that close to the area that quickly, then take your profits and run.
I sold the long May 18 Call for $3.30, which gave me a NET profit of $0.74 in 9 trading days for an ROI of 28%.
That's what I call a nice gift!! Now, I enter the information into my trading log and I look for the next set up - it's one big merry-go-round, keep taking profits and keep getting into new trades - over and over and over....
No comments:
Post a Comment