Cycle Trading

[Duma]

Starting to refine my process of looking for stocks that look like they are about ready to pop. By Fri I had positions in 6 of my finds.

One of those is HTZ which I went long with on Thur at 24.33. It popped this morning almost 6% and is sitting at 25.81.

I was kicking myself this morning for not using options to really goose the gain, but when I looked at the options I was somewhat shocked at what I saw.

With IV (implied volatility) at 81.4% (one of the highest I have ever seen), the options were way to expensive to be used for a long call. But not for a CC play.

So I just put on this trade for a little extra play.

Bought 100 shares HTZ 25.8998

Sold 1 Nov17 22.5 call for 4.20

Downside protection is -16.2%. Recent low is 23.25 but BE is 21.70.

If HTZ stays above 22.5 profit will be $80.02, 3.69%

For 18 days this is 74.8% annualized.

I sure like this trade. As you can see from the graph, this is a typical strong w3.