OptionsRising
Long

Beautiful place to buy calls - have exit plans ready

NYSE:DIS   WALT DISNEY COMPANY (THE)
Monthly 100-day SMA is at 95.38, yellow circle.
On weekly chart you will see support area , green dashed line.
Swing trade or day trade.
Mar 12
Trade active: I bought weekly 100 calls at $1.00, when stock was below $94 after trading halt. When option volume is low (only a few hundred for this strike) and bid/ask prices are wide spread, I prefer to use a conditional exit order to control my loss. If stock trades below 95, sell to close at limit of 1.10
Mar 12
Comment: IV staying high so changed conditional price to "94". I adjust exits based on my charts, and I saw this 11:15 drop as a possible retest of morning lows. Also you see long bottom wicks on 30m candles, meaning that buyers stepped in.
Mar 12
Comment: cancelled conditional order, watching chart for retest of morning lows and bounce. hourly indicators (like previous post on divergence) take time to play out, and my risk is very low.
Mar 12
Trade closed manually: I added more calls at $0.80 and close all at $2.10.

Comments

dis has streaming... could this save them?
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this is jumpy. today bounced on 92. day trads r great but im looking 4 2pm speaker talks 3pm trump talks today. r u thinkn its good news 4 stocks??
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RobFlorio RobFlorio
@RobFlorio, i exited now lookn 4 back in. carefully
Reply
OptionsRising RobFlorio
@RobFlorio, I have learned from many bad trading mistakes that I should not think about news being good or bad for a stock. The chart will show you. Sorry I cannot give you an answer. Speaking of the weekly chart, stock bounced off 92 area, low support, ans 30m chart might show signs of upsise if RSI gets back over 50. Today's open was a bullish reversal also. If you buy calls be willing to hold through price fluctuations, so use little capital.
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