Sunday, June 6, 2010

2 new positions entered on Wednesday

No time to post any charts because I am still not proficient enough and I am too tired to put in the effort. On Wednesday I did enter 2 positions though.

bought 1 MCO Jun 20 Put for .97
MCO broke through resistance @ 20.39 on what looked to me like a bear flag. I entered on a retrace of the half way point of the BRC (big red candle from Tuesday). I will raise my stop tomorrow to lock in some profits but I am projecting a possible move down to 17.72 so I will try and leave the stop wide enough to give it space to get there. Then again, if it makes a parabolic move on Monday, I will get out and look for a bounce to re-enter possibly with a July option.

bought 1 MGM July 12 Put for 1.00
both trades had a risk around $25 and a target of 4 x risk ($100). MGM was butting up against resistance at 12.80. I could have placed an order to buy the put at market when it hit the resistance, which it did the next day, but in cases it was a bear flag and was going to drop from there the risk was still small enough to enter when I did. My target for MGM is as low as $9.00. I still don't have a trailing stop system but I am researching a few possibilities. Until then I will update my stops nightly before the next day's trading.

The futures are down slightly tonight. A gao down and drop just enough to trigger the buy back of my spreads at .02 a piece would be a nice way to start the week.

0 comments:

Post a Comment