I added to the short position. Looking for a breakdown and the 77's to trade.
Hopefully this week.
LetsBeMillionaire
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what do u think of SPLS calls? its down a lot and saw huge call volume for Jan 2015 2-3 days back for strike 12 and 13
Barker
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SPLS looks good. Calls are the only way to go with SPLS.
LetsBeMillionaire
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Hi Barker, Trend is up side, Market is bullish, healthcare stock so what makes you think to short this one? If you see the graph, its continuously up side only.
LetsBeMillionaire
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also if you think this is Short then UNH is also a short candidate....
Barker
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I'll be the 1st to admit that shorts are tough in this market. If you look at my history, I've only really stepped up my short positions over the past few weeks.
As to the trade. Take a look at the weekly chart. Note the volume spike and the move down in the stock price starting 3 weeks prior to earnings. I may be a few days early but realize that I only took a 1/2 position. A 1/3 position might even have been a better plan.
Also, It is quite rare to see stochastics embed to the upside for 3 months straight. Stochastics have now been embedded for most of May and all of June. I believe that we will see a retracement back to the March highs by the end of July. Earnings are July 29 so I expect to see profit taking as we approach mid July.
Keep in mind that my idea to short AET is not really confirmed until I see a close below 81.40. Also realize that I'm not looking for a failure of the channel. I'm simply looking for a pull back to the lower end of this upward channel.
timwest
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Great comments Barker. A new quarter is always a good time to get some volatility as portfolio managers swap out of the winners and look to find laggards or other names with better risk/reward valuations.
I added to the short position. Looking for a breakdown and the 77's to trade.
Hopefully this week.