It almost sounds like you don't agree with my expectation of solid strong rotation into the drug sector, relating to this bill.. In light of the outrageous level of most other sectors, it is long overdue for some serious appreciation and this should provide the fuel. It looks like a 3-6 month rally from where I sit...But Whatdoiknow? I missed by 8.5% today...However, something tells me that if it hits it on Tuesday. You will consider the call, close enough. I see several issues related to this bill up 5-8% today!
Relative to keeping money and technical analysis, ABC is finding resistance at the 90-week moving average as it works off an oversold oscillator on the weekly. The 30-week just crossed over the 60-week moving average confirming a long term bullish trend change in ABC. In fact, it appears very likely that ABC has confirmed a head and shoulders bottom on the weekly chart. On the daily chart, ABC is working off oversold conditions on rsi and oscillators. Based on the on balance volume, ABC is setting up with a handle for a swing trade higher. Writing a covered call at $65 which i suggested in a previous post was a good idea if the short-term volatility was an issue so I do not quibble with you buying back the calls and booking a profit. Nice trade. Having naked puts on this stock show you are adventuresome and really have no clue what the upside could be. Sounds like you are a Las Vegas type of guy.
I have no disagreement with your rotation thesis nor the fact that there are plenty of over priced stocks out there. I just think your expectations are way too optimistic for the time frames you are imposing. I have been at this game for many years so my outlook is tempered with experience. ABC is my largest holding so I am not going to argue with your enthusiasm.
Did you check out post 3266 yet? I figured Putnam was partly to blame.. With that almost over, I expect to see a solid rising 20,50 and 100 DMA...But Whatdoiknow? I just passed 7 years at this. With little to nothing to talk about on this board.. why not just chew some short ass? After all, I think the longs are due after the last 3 years! WDIK