Any significant pullback seems likely to be met with buying, as we are already inexpensive. If you bought in this range or lower, consider selling the Aug $42 calls for $1.60 or more. If you don't get called away, repeat the same the next month and the following month for an even greater premium.
I think you're right and keep my core position for better days. In the meantime, I am making money on my trading shares.
Looking back on great moves by other stocks for comparison is irrelevant unless you know how to repeat these gains. Tell us your picks to do what AMZN has done this year. With less shares out there and continued low oil prices, earnings may well be even better next quarter. In the meantime, I will probably sell my trading shares and hang onto my core position. Sadly, good chance we will see lower stock prices in the near future.
Also expecting some buyers to come in after lunch and take us back up near our highs for the day.
the chains are being whipped around taking out all nearby shorts. Once Kraken's legs are loose, he will be running over all shorts within miles. Nice to be on the right side of things. My GPRO and CYBR also doing very well lately. I'm taking some off the table there. My best to fellow longs. Hopefully we can move into the high $40's tomorrow.
Hopefully we can move back into $43-$44 range before earnings.
Not guiding higher is a killer, and it is overdone. Buyers walk away and without them the stock sinks lower and lower. I think some shorts have taken advantage of this weakness and exaggerated the plunge. The potential good news about lackluster guidance is that if the quarter and guidance is good, we could have a nice move higher.
Yesterday I sold July 31 $43 calls against some of my shares for $1.34. Today you can sell the Jul 31 $40 puts for around $1, meaning your cost basis if you get put the stock is only $39. Keep some stock for a probable long term move higher, but the premiums on options here are good. I'm expecting now that on July 31 my calls will expire worthless and I will be able to repeat the process.
Totally agree. And then the story will be that AAL sold off on the downgrade, when the truth is the downgrade will be used to provide a story to explain any pullback, rather than acknowledging shorting by a hedge fund. Hopefully at some point soon these same crooks decide to go the other way and put out a few bullish stories.
You can still make money on a stock like this, even if it goes sideways or slightly lower. I bought during the hype at around $51, and became concerned about a pullback very quickly, selling the July $50 calls (in the money) for $3.50 and buying back yesterday for .40. Today I sold the Aug $50 calls for $3.30, so my cost basis is now under $45. Unless the stock tanks, this is a decent way to play a volatile stock. Bad news is that my gains are capped if it takes off. Either way, good luck to longs.
It is weak, but at least looked a little better today on what was a huge day in the overall market. Sometimes these low expectation stocks perform very well going into earnings (still a ways off). I bought some additional shares too soon at $20.92 and sold the June $21 calls for .70, and now the August $20 calls for $1.00. If it is called away at $20, I'll make a small amount. If not, I'll repeat the process and keep lowering my cost basis (in a retirement account so no tax issues). My original shares were bought around $25, so I'm stuck like many here. Just trying not to lose more lately.
Right about now I am remembering the iconic Steve Martin quote from "The Jerk"--"It's the cans, they hate the cans." Substitute "stock" for "cans".
finishes up close to a $2 gain. I may be foolish for expecting anything great here, but I think we have turned a corner.
Do others see the same heading when first signing onto this message board? I also see it on PANW, FEYE, ALDR (not cyber security), and not on AAL.