Wednesday, August 19, 2009 5:54:47 PM
POT CHART:
I was able to grab some POT SEP $95/CALLS @ $4.68. This was just before noon. We then had the whole market explode to the upside and I locked in my protection by selling POT SEP $100/CALLS @ $3.60.
Buy POT SEP $95/CALLS @ $4.68
Sell POT SEP $100/CALLS @ 3.60
LONG CALL SPREAD = $1.08
This limits my upside to $5.00 or he difference between the two strike prices. but also reduces my risk all the way down to a buck. Looking at the chart we can clearly see that after we gaped down, our current resistance was set just above $100. So I feel we have a real good shot at getting there again.
This position give me a reward/risk factor of 5:1. Anything above a 3:1 is a very favorable move, IMO. But with the market swinging like it has over the past week, it's been hard to gauge direction so we will just need to sit and see what happens here.
This not the best set up and I'm just trying to squeeze a winner from a market that seems to have no direction at the current moment. I'm looking forward to after expiration on Friday for things to become more clear.
I was able to grab some POT SEP $95/CALLS @ $4.68. This was just before noon. We then had the whole market explode to the upside and I locked in my protection by selling POT SEP $100/CALLS @ $3.60.
Buy POT SEP $95/CALLS @ $4.68
Sell POT SEP $100/CALLS @ 3.60
LONG CALL SPREAD = $1.08
This limits my upside to $5.00 or he difference between the two strike prices. but also reduces my risk all the way down to a buck. Looking at the chart we can clearly see that after we gaped down, our current resistance was set just above $100. So I feel we have a real good shot at getting there again.
This position give me a reward/risk factor of 5:1. Anything above a 3:1 is a very favorable move, IMO. But with the market swinging like it has over the past week, it's been hard to gauge direction so we will just need to sit and see what happens here.
This not the best set up and I'm just trying to squeeze a winner from a market that seems to have no direction at the current moment. I'm looking forward to after expiration on Friday for things to become more clear.
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