Congratulations on a great trade. Avoid all or nothing thinking. We should get a strong open in the morning, with a good chance you can get $3 for your calls. You have $800 invested, sell 10 calls early for at least $2,000, probably more and let the rest ride. I would try to sell by end of the day, as there is always a risk of a pullback after a sharp move higher, and holding into Friday with options expiring that same day is risky. The after-hours news about lenders relaxing their terms should move the stock higher. I suggest you stay glued to the screen in the morning and don't sell until you see a hint of momo slowing, then be quick in taking at least some of your profit. Good luck.
but could easily hit $40 this week. The combination of shorts who got greedy and stayed too long now having to cover, and momo buying could send VRX into the $50's next week. Not saying it will, but is definitely possible.
I think you need to wait until the end of the day to crow about technical breakdowns. We shall see.
If you're long, you should consider selling calls for a fat premium or taking some off the table IMO. Looks great now, but the overall global market is weak and will pull everything back down.
I agree. Setting up for a hard fall as they gather a new set of shorts to buy AFTER they drop it enough and turn it higher. As the rest of the market is moving higher, AMZN is creeping lower. This market is ready for a pullback, and when it happens AMZN is at risk of pulling back sharply.
Ouch. Tough to be on the wrong side. I'm hopeful we go much higher, but the reality is that when the market pulls back again (we are getting close IMO) most stocks will pull back. When that happens you should sell some puts against your short position to reduce your losses.
Did it just get too extreme in the move lower, find a bottom, and now in process of working its way higher. I bought a small position today just because I like the way it is looking lately.
Really annoying when that happens the day of earnings release. Almost always means many people already know the earnings and are trading on that info before the public becomes aware. Hopefully we don't tank too badly from here. I sold some Mar $20 calls for $4 recently to protect myself.
Timing was right on. Got a quick $4 bounce. The $550 calls expiring Friday moved up about 50% in a few minutes.
Any slight market improvement will quickly yield a $2-$3 AMZN bounce.
The stock has always been a scam, pushed higher by naive people buying puts, and then the stock being pushed artificially higher so the put sellers can keep the money. When a buy of 1 share can push the price up .20 and often a few more shares can push the price up .40, you have to know something is out of whack. Very dangerous stock to short because of this, although can be very rewarding if you time it right.
They said board and management have taken risks that put the company at a 46% premium to its current price (or something very close to that).
Thanks uncle! You were right about my timing on my recent AAL buy. Hope I become even more wrong to have sold some covered calls on recent buy, so I can get back into selling covered calls in the $40's. Want to take a shot on predicting what the market will do tomorrow. Another day like today would really have shorts running for the hills, but I don't think we will be that lucky, so was selling off some long positions today. I recently bought some cheap out of the money AAL calls expiring this week just in case AAL continues higher.
think in this market we can continue higher from here? Cramer's article was very annoying. Hope it isn't true.