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Seagate Technology Public Limited Company Message Board

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  • disk_investor2 disk_investor2 Jan 22, 2009 11:50 AM Flag

    Technicals

    Putz, I know you are slow, so just for you I will go over this strategy again:

    1. From yesterday's report, this stock is going nowhere for the next three months.
    2. As has been the case over the last 4 months, despite all the bad news the stock continues to trade between its 20 day bollinger bands.
    3. With today's action, the bollinger bands are now between 3.35 and 5.83, see www.askresearch.com.
    4. So if the stock continues to trade between these bands, the next move is up to the $5.83 level. If the stock hits that level, I would then write the covered calls five to 10 weeks out. Two weeks ago, when STX hit $5.60, the March $5 calls were priced at $1.20-$1.30.

    SO I AM SAYING WRITE THE COVERED $5 CALLS, 5-10 weeks out, THE NEXT TIME THE STOCK HITS $5.60 (or near where ever the top Bollinger band is) not today Pee Wee!

    Your strategy:

    "I said sell the 2.50 puts, not buy"

    Gee, Pee Wee there are no February Put options listed, see link below, and despite the major sell off today the March $2.50 puts are now selling for 20 cents.

    http://finance.yahoo.com/q/op?s=STX&m=2009-03

    I thought you said 20 cents was chump change, chump?

    PS-Did you see the buying come in this morning when STX hit the lower Bollinger band????

 
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