goodguy

HEXO: F/U taking partial profits

NYSE:HEXO   HEXO Corp
F/U from posting from June 2020 when price was $1. (link below) We may be close to a correction or top. I'm taking partial profits today. We may see further up action to the channel top. Process your way.
Trade closed: target reached: It did go up to up channel line where I closed out

Comments

I sold covered calls above 11 yesterday and closed them around 8 today. missed some delta but post market yesterday had me frustrated and if I had after market access I probably would have closed in anticipation of another gap up.
anyway, do you think we will see a nice cup and handle on the daily\weekly to fill the daily gap up to around 14?
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goodguy Franknewman
@Franknewman,

I think this up action since mid March is a corrective A -B-C wave. I favor we will likely now have bearish A-B-C down over the next few months. Then it could continue to go down or start another A-B-C up. Corrective waves have a lot of different forms and are hard to predict. Hope this is helpful . Here is a chart of what I'm guessing.

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@goodguy, thanks. I am long hexo but I wouldn't be surprised at all to see your weekly scenario here. It would exhaust many weak hands in a market with "high" expectations surrounding the Biden presidency / legalization and would yield a giant wedge to break out of in late 2022 or 2023. I could sell covered calls the whole way down to a dollar and buy more.
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goodguy Franknewman
@Franknewman, when I was much younger I lost a fairly large amount of money with options. So I have not used them since. The timing must be so accurate. If you follow what I’m doing it is longer term often correct recently but not so great in the short term. So please don’t make your option calls based on my best guess opinions. I don’t want you to lose sleep. You can make a lot of money just trading stocks. I apologize f you already do that. Best to you. Goodguy
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@goodguy, I appreciate the concern. Covered calls are the safest for me. And I take full responsibility for my trades. With a covered call I will not lose money; worst case scenario I will miss out on some gains but I will not lose money. There are some weird cases where I could see an unrealized loss but at expiry I won't be negative, only neutral in the worst cases.
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