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One year later....
Well that would be a 100% gain from here. 
Wow people here again?!? OK not really with 10 total posts in 2021 but....I expect a global settlement in 2022 will liven this place up. 
With the beating the market took after FED I'm shocked we didn't break back down to 8. Was hoping we could BUST through that 8.5 and stay above but...at least it got above 8.60 for a little bit today. Looks like a range and had we won in court the ceiling would be 10.20's instead of 8.60....Settlement if favorable which I expect, should create a lot of POPS and DROPS but doubt we go back under 10 whenever that happens. Could see us touch 5's if overall market forces some others to have to sell to cover other stuff but should recover. I don't think were going to BK but I wouldn't doubt some 'rumors' spread to force a fire sale for a few days before an actual settlement.
TEVA, a little closer look:
Already have recent shares and sold CCs multiple times, so just sitting on shares as of last Friday -- reconning day. That was a profitable week. Going to see if this one is.
It's sort of like fishing for crappies -- I've got a baited hook on bobber and waiting for a little surface activity off the bottom line then I'll huck all-in: hook, line, and sinker by selling CCs against my shares in two accounts and see what I catch by the end of the week.
Usually I get something for the pan and I can keep on fishing week after week. Adds up pretty quick. Get to use that to buy more shares next time. I've heard that's called compounding.
Well, I wouldn't call it a channel.
Channels have parallel lines. These two blue lines are converging and ultimately touch, forcing price to break upward or lower.
The pattern is a horizontal triangle. Those two lines are clearly not parallel.
If the history of the last few months repeat, price bounces off the lower blue line (which is actually floating above, and sometimes touching, SMA(100)) then goes higher until price reaches the upper blue line.
Teva is being held down by a "price fixing" law suit. Other companies (identified within that same law suit) have settled (AKA bought their way out by forking over money without admitting fault), but TEVA refuses to do that (and probably for good reason as they were just following the pricing of the other companies they were competing with).
TEVA trading at bottom of pattern.
Most likely will trade higher next week (assuming pattern continues). However, the pattern says it won't trade much higher than $12.50 (extrapolating the upper blue line).
I initiated trades on this stock near the end of July. I'm currently on my third trade for this cycle. The method I follow all the time is to buy a stock; sell weekly CCs against it; then repurchase the stock if assigned then write more Calls. Without reinvesting earnings, the volatility of this stock suggests an annual return of about 80% while using this CC method.
But I reinvest earnings when the income allows buying an additional 100 shares (which is needed if I want to sell an additional Call option). That expansion of holdings (AKA compounding) makes this CC method capable of annual gains much higher than 80%.
Qualification: this only works for stocks with predictable behavior.
Resistance they say.
And gaps to fill.
Better off going to the beach, but stay out of the water. There are sharks lurking there.
On a daily basis, the trend is still down.
SPX Resistance.
Alternative way of looking at it.
The fun and games can continue if $SPX doesn't break below that bottom tine. There was a similar scare two weeks into May. There were two red candles heading into the bottom tine then also, but there was a green candle that tagged the bottom tine, so the fun and games continued.
But there's a difference this time. There was no gap down into those red candles in May, but there was a gap down into yesterday's red candle.
Closed this trade for a loss.
Both accounts, IND and SEP. Debated with myself about that as TEVA started trading below the daily S1 Pivot, and below SMA(50).
The last time I did this was when I got out of the market back in late February. There's been a string of Fridays wherein they've all closed green (indicating no fear of the weekend) -- but that could easily be history as of today.
SnP is red today (a Friday), for the first time in several weeks.
Also, Thursday's trade for all the major indices (and TEVA) were not just red candles but also a full gap down from Wednesday's trade.
Therefore, it's a good time to get out. And I'm not letting the door hit me in the ass on the way out, so I'm running out. Hate to do it but gotta do it.
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