This stock is in consolidation, this pattern is a daily pattern triangle. It is building energy and will breakout...which way? I think it will go higher due to earnings/revenue momentum. This always depends on the market in general..but a break above the triangle or the 34.66 mark is a buy...I would look for volume and close above then enter with good risk management of stop below major low or apex area.. ensure risk is only about 3% of portfolio...options can be considered
NOTE: There are no options on this stock so stock only purchase
A-shot
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How does this fact affect the stock trading while no options are there? And when options appear as well? Please share your experiences
Vince
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The stock moves regardless of options...options are a derivative based on the stock and its movement. There is no real effect. They can give you ideas on how the stock will move based on certain events....sentiment
A-shot
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Well people cant buy options, and left with stocks. once options appear wont some stop buying the stock and buy options instead ? i.e. decrease the volume?
Vince
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Yes true but I don't think there is a way to determine what that means, honestly most people don't know how to trade, much less options so they will gamble...stock is better for most who don't do the work
Vince
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Often people use both stocks and options to hedge so volume will not drop
A-shot
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Also a good point. Really? Experienced % vs Inexperienced % - what do you think the ratio is?
Vince
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90% of traders are inexperienced and gamble....in options even more so
A-shot
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Im assuming the rest are brokers making money of the 90% :)
Vince
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No brokers make money either way the other side of the trade is making money usually sellers of options