This is not a bad trade! It is the best Bio-tech stock I have ever come across. In 3 years time this has the potential to be $200+ dollars...
The short term trends are nothing but entertaining to discuss. Right or not it matters nothing... You hold your shares and in a few years you are very wealthy.
Look its simple... You look at Fridays option chain price. Bid was $.15 and Ask was $.25. A retail trader always has to buy at the ask and sell to the bid. Rarely he can buy at the mark and it's almost impossible to sell at the mark.
The options were purchased at $.25. This means a retailer bought the options at the ask, vs selling the options he owned or wrote contracts at the bid of $.15
No need to get wild here.
Your break even calculation is off however... Take the strike + the price he paid and vuala. (This is assuming the stock doesn't move until expiration and there is no hidden time value left in the options)
FINALLY - Nobody is thinking news... He is simply playing the technicals which state a run to $3.50+ before the 19th which I've been telling everybody forever. But nobody has the brains to understand how to read a technical chart.
Anothing thing you don't get. You have to adjust technicals for Bio-tech manipulation. They are a great tool used by Market Makers to justify there price decisions. If a MM decides to pump a stock to 8 dollars and the previous 6 months technicals support that move, outside investors will jump on board and take on the bulk of the load.
They will initially scratch there head "Why is this stock moving in such a way"? They'll then realize it was supported by technicals and a valid move so they'll jump on bored.
When the fact of the matter is mr MM decided to make some profits between him and his buddy.
I said you can't sell to the ask and buy at the bid. The fact you got that backwards shows you really have no Idea how the option chain really works..
Lol. We are breaking out, what have I said that was wrong?
also a 100+ dollar stock in 3 years.
2.50 is dead. $2.85 is the new bottom but the only time we will touch it again is tomorrow briefly (If we do at all) Next tuesday we will break through $3.00 and be on track for $4.50 by Sep 19th.
Tomorrow we will close above $3.00 with more then 2 Million in volume.
As it stands I would say we close around $3.25 tomorrow with 2.5 Million in volume.
Because its entertaining. There is no basis for this to close at $2.97. I'm creating a random number to see your reactions.
I don't have to prove myself to anybody, I've made 1,250% in the last 2 years and I know my #$%$. I make money, thats all that counts. I attempted to help others with some technicals (When I say technicals I'm not talking about text book, you learn in school, blue chip technicals. I'm referring to sound Theories I have created myself with regards to how small cap bio-tech trades as well as the manipulation.
But I was gunned down, nobody wanted to listen so I stopped. Now I'm back to just using this board for straight up entertainment.
PS you are a deuche
Not even close... You do realize I'm a technician right? I know a thing or two about technical analysis, as well as fundamental analysis.
Have you gone through your CFA? You are a tool.
If you look at the 3 month chart. You can form a defending wedge from $3.50 - todays price. The down trend line intersects with the base of $2.50 on Sep 19th. (Figures so you can draw it yourself)
It looks like on August 8th we broke out of the previous Wedge (was forming an intersect point to the 15th) Only to come back down and extend the wedge.
So we need to hope that between now and September 19th we break through this new wedge and run to new highs.
If we don't break above $3.50 a few days after the break out, we'll be destined to trade sideways for quite sometime. (Until news)