End of Month PDUFA date coming up. The chart itself is shaping up nicely. The drug is a very promising cancer treatment! Today (2/23) is a very red day, after half hour of trading, the low has retraced back up into the triangle. I'm thinking if I had money from other trades, I would have moved in today or tomorrow (seeing how this week pans out). Buy along the green line.
Looks great! Did you end up buying along the green line?
gruenberger
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@tjbeatty, I learned a great lesson in trading psychology. I bought a call on March 3 (April $9). As the trend progressed, we had that "week" where we saw a lot of selling all around, and if you look at XBI, it was in pretty steep correction. This is the kicker of course--> I decided to deviate from my plan (which was to wait for PDUFA (FDA approval)) and take the 15%. The reasoning was that I was not wanting to risk the option decay for another two weeks (PDUFA was a "no later than" Mar 31). On March 9, I closed out my position for a small profit. I planned to open a new position next week for the rest of the run up.
haha-- that was a mistake. But, as you know, hindsight is 20/20. Maybe a stock position and not an options position is better for some of this.
Further, AVEO started form more of a downward wedge as it fell a bit out of pattern. Either way, it was bullish with a massive catalyst (the PDUFA approval date). Good news--> my ENTX position worked out. What did I learn? stick to your plan, manage your appetite for risk appropriately (stocks vs options). Look for a good technical entry and let your plan play out. We all know this already, but easier said than done, eh?