The first major support level could be 83.85
This would be a 50% retracement from the high. Although the IPO price of 68 was never reached, this could play out as a psychological low for the analysis by traders.
Jon Najarian said he sold his BABA shares near the open. He probably got in at the IPO price of 68 and sold close to 99. Nice profit if you are part of the inner circle. With all of this extra money going into the market, is there any money left for buyers to continue buying stocks at higher prices?
It does look like a double bottom. However, another way to look at this would be a descending triangle having a flat bottom and a downwardly sloping resistance line formed by lower highs. The price would have to rise above the resistance line to remain bullish.
I am expecting some longs will be selling into any YHOO rally tomorrow to raise cash to buy Alibaba thinking it will be a better long term investment.
If on Friday morning the share price were to spike up to 50, it may be difficult to get a good price to sell your long calls since they will be deep in the money. One thing I sometimes do to lock in my profit would be to sell short a higher strike call. In this case, you could maybe sell short a Sept 45-48 call and create a spread against your long call. Then you are able to close it out as a spread and get a better price. Instead of selling your calls in 0.10 increments, you can close out your spread in 0.01 increments. Of course you would have to close out the spread before the end of the trading day if they are Sept options.
Take a look at the history of DNDN. There is no real bottom for this type of stock.
Consider an option strategy instead of owning shares. This would limit your downside risk.
For example, with MNKD at 6.19, you could acquire the Jan16, 5.00/10.00 call spread for around 1.40
The amount paid for time premium would be relatively small, only around 0.20
Max profit would be 257%
Even though YHOO is in QQQ, it is just under 1%. The money to buy BABA is going to have to come from somewhere. Today's decline was probably predictable since the sold stocks will have to be settled before Friday's IPO.
What about the Panasonic HX-A500H. This is a wearable 4K camcorder which is waterproof.
There are numerous other wearable waterproof cams available.
I noticed that USO and FCX appear to be on similar paths. Both went from around 39 now down to around 34.
Does it look like this: http://www.kiowaok.com/cheap-replica-patek-philippe-grand-complications-watch-pat327-tourbillon-windows-rose-gold-case-hollowed-dial-moon-phase-brown-leather-strap
Yours is probably the real thing. I was thinking of getting one of these replicas as a novelty.
I just sold half of my calls I had bought yesterday near the close.
With yesterday's volume being around 11 times normal, I find it surprising that the drop was only around 6%.
Capitulation? A lot of buyers did come in at around 45 which appears to be a major support area. Today's price action looks good, especially with oil being down. Maybe a good chance for a 50% retracement.
If someone was bullish on HLF, selling these puts short for 8 would actually be a good trade. A good plan would be to roll down to lower strikes in case the price declines. It would not surprise me if someone like Icahn is already doing this trade.
If the share price were to drop to 40 within the next few months, he would make around 40% profit on his Jan 2016 put options. He could then start scaling out of his position. Another strategy would be for him to start selling short lower strike puts as the share price declines to create put spreads. But most likely, he is not planning to do any of these strategies. I agree that he is paying a huge time premium for these options. One of the most difficult decisions is when to take your profit. If he is determined to prove a point, he may end up holding these puts for too long and lose all of the premium.