I tried posting my thoughts on DIS.
As I completed that and posted it, all hell broke loose. And when the smoke cleared there were no message remnants at all as my post just seemed to disappear into j-space because iHub has no provisions to post into the shadow of what was once your message. All I saw was a raised flag with a message announcing that I can’t post to a message that doesn’t exist. Okay, I accept that, but the least they could do would be to preserve my message in the editor box. DIS at that time (which I think was late morning) was still all green but had a fairly large upper shadow, meaning it was very reluctant to go any higher. I anticipated the whole pattern to go flat going into earnings -- i.e. consolidate in some sort of flag or pennant. My plan if it should produce a healthy consolidation, which I suspect it will, is to buy Calls either prior or after breakout depending on how it looks. I guess a true pattern trader would wait till after it breaks out, but I am impressed with its orderly and linear climb through a very dense 8-point range of resistance during a much more hesitant market as depicted by $SPX.
Disney hasn’t broken through resistance. It could tomorrow, but my thoughts were that I don’t think it will. It’s earnings are due Nov 5 (a couple weeks away) and normally that nearness is sufficient to cause a stock to hesitate. I expected that early this morning, and I still do. Just have to wait and see. If it does, then it forms a flag or pennant pattern.
My impression is that price will continue to rise, and the rate will depend on earnings. My inclination would be to buy Nov 27, $110 Calls with no spread. That expiration would be 22 calendar days after earnings release. Depending on earnings, that’s sufficient for another 10-point rise which could happen as quickly as the last 10 points. Sometime during that time might be a good time to sell Nov $120 Calls (making it a belated spread), and use some of those proceeds to buy farther out Calls if it appears it could have legs, or to buy some Puts if it appears that it could fall back a little after having gone up 20% over a relatively short period.
Or, sometimes I think I don’t have a clue.
As I completed that and posted it, all hell broke loose. And when the smoke cleared there were no message remnants at all as my post just seemed to disappear into j-space because iHub has no provisions to post into the shadow of what was once your message. All I saw was a raised flag with a message announcing that I can’t post to a message that doesn’t exist. Okay, I accept that, but the least they could do would be to preserve my message in the editor box. DIS at that time (which I think was late morning) was still all green but had a fairly large upper shadow, meaning it was very reluctant to go any higher. I anticipated the whole pattern to go flat going into earnings -- i.e. consolidate in some sort of flag or pennant. My plan if it should produce a healthy consolidation, which I suspect it will, is to buy Calls either prior or after breakout depending on how it looks. I guess a true pattern trader would wait till after it breaks out, but I am impressed with its orderly and linear climb through a very dense 8-point range of resistance during a much more hesitant market as depicted by $SPX.
Disney hasn’t broken through resistance. It could tomorrow, but my thoughts were that I don’t think it will. It’s earnings are due Nov 5 (a couple weeks away) and normally that nearness is sufficient to cause a stock to hesitate. I expected that early this morning, and I still do. Just have to wait and see. If it does, then it forms a flag or pennant pattern.
My impression is that price will continue to rise, and the rate will depend on earnings. My inclination would be to buy Nov 27, $110 Calls with no spread. That expiration would be 22 calendar days after earnings release. Depending on earnings, that’s sufficient for another 10-point rise which could happen as quickly as the last 10 points. Sometime during that time might be a good time to sell Nov $120 Calls (making it a belated spread), and use some of those proceeds to buy farther out Calls if it appears it could have legs, or to buy some Puts if it appears that it could fall back a little after having gone up 20% over a relatively short period.
Or, sometimes I think I don’t have a clue.
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