After the price of BABA plunged on Wednesday, you could have bought the May 26 $77.50 calls for about .20, then sold two days later for around $3.00.
It looked like someone wrote a rough draft of the article at some previous time and then forgot to fill in the current numbers before putting it up on the net. I bought some shares at around $34 for a bounce, and plan to start another round of selling covered calls. Has been a good money maker so far. Maybe someday I'll make enough with this strategy to offset my shares bought in mid $40s.
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.