This time it's a long call on LDK. Here's the chart:
A couple of weeks ago LDK broke above a level of resistance. It then went on to some nice recent highs before it pulled back, retested the old resistance/new support and now it's ready to bounce back up to those recent new highs.
It's a cheap stock and the move will only be about $1.50 or so, however that roughly a 12% move for the stock. So, it's a good move, and it should happen fairly quickly.
I've tweaked my long options just a bit by making sure I'm close to 90 days (or more) until expiration. This market isn't moving really well and I need plenty of time to hit targets. Even though this trade should only be a week or so, you just never know, better more time than less.
So, I bought the January 10 Call Option for $2.35. I'm looking to hit the recent highs, and if it goes against me, then I'm looking for it to break 2 levels of support: the first is the purple line on the chart, the second is just below that where the bulls were keeping the stock price from going lower before the breakout.
Another good thing for LDK is news - because we ALREADY KNOW what the news is: solar stocks overall are heating up and getting good reviews. LDK is a solar stock so this positive news should help us as well.
For now, we remove all emotion, we follow our trading plan above and I'm looking to hit our target in plenty of time before the option
No comments:
Post a Comment