- This topic has 0 replies, 1 voice, and was last updated 12 years, 6 months ago by
.
Viewing 1 post (of 1 total)
-
Posts
-
This pattern can be classified as a “base on base” pattern, where we see a double bottom breakout above the resistance level at 13.75, then a secondary base forms above it. The fact that it can’t break back below that previous pivot level indicates buying interest. and it has just broken a minor downtrend line.
The play here is to get long provided it stays above those recent lows.
I like buying the Dec 15 call for 2.00 or lower with a stop under 13.49. That puts your risk at about 80 per contract, and there’s not much theta risk as these calls have a longer expiration date.
Close 1/2 of your position at 16.40, then maybe hold the rest for a longer term move up to 19 or 20.
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.