Well ATVI made a new 52 Week High on a Q1 Beat and boosted full-year guidance for the company. I bought the dip with AUG 15 Calls. Looks like it'll work out just fine even though I took a more aggressive entry, since we did form a bullish dragonfly doji / hammer candle showing bids picking up the dip. The previous days selling volume looks to point more towards profit taking by individuals holding long positions prior to the breakout. The stock is roughly up 30% YTD and I'm looking for a push beyond 25.14 taking some profit off at 26.00. A more conservative trade would of been for me to get in on a retracement at the open tomorrow.
Cheers happy trading =)
Comments
damdaman
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Looking good today. :thumbsup:
Daniel.B
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Yea its looking good =) Took a small fraction of profit off and will add some back probably next week hehe
damdaman
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I'm not a fan of today's candle. It's not bad, I haven't sold any of my position, but I've got an itchy trigger finger. Looking for follow-thru on monday. I'm bullish on the general market which could help lift it further, but I'm not going to give too much leeway.
Daniel.B
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Yea friday's closing candle is a bit concerning but the weekly candle is reassuring showing the bids closing the week above the previous weeks close... We can be in for a slow grind up to our targets hehe We can also get into another area of consolidated range between $24 and $26 before the next leg up. =)
damdaman
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Huge open interest at $24 (>7,000) and $25 (>8,000) calls with expiration Friday. If ATVI can climb above $25 by then, there will be a lot of people forced to buy shares.
Daniel.B
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Thanks for the comment and the info =) I was just also combing through the options to see what the open interest is for Friday expiration lol. Hopefully it can get above $25 by then so as you said "people are forced to buy the shares" and we can get a decent pop =D
NoviceTraderForever
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Bear here.
Just a heads up guys, IV for June puts is insanely cheap atm. Considering hedging your long positions while the premium is low if you haven't already.
Daniel.B
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Ahhh the bear! lol Thanks for bringing up the IV for the June puts =) Cheers
Daniel.B
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Update: D1 Price action formed two spinning tops thus forming tweezer tops, which says to me that there is indecision at current levels if we break (close) below the wick lows around 25.14 then its very likely that price will retest the 24.20 support area, potentially setting up for a leg above this years highs or forming another $1-$2 price range in which I will also be swing trading it from support to resistance on & on always taking profit at resistance and leaving 10% of the trade open just in case it makes a new high for the year. So I will be taking the majority of the remaining position off tomorrow and leaving 10% open in the small case that we do make a new high. What ever happens I will be happy to trade another price range or hold on to a break out.. .Either way it'll make for decent relaxed swing trades hehe =) Cheers