Ideally consolidation would be perfect for those who bought the breakout.
But considering two facts here :
- PFE is at or close to its all time high of 45-47 (close enough)
- As always in the markets, what goes up much correct and come down.
To avoid a hear breaking downside and see earnt profits vanish, specially if you have a big position and are in profit currently I propose a strategy of using options to hedge the profits.
Buy puts at a a lower strike price with a close date expiry. This will protect you from sudden drops and keep your profits intact. Worst case you lose the premium which is not a big deal if you are still " riding the uptrend " with your big position.
My " two cents " on this..
Any ideas from your end will be highly appreciated.
Take Care
ChartMeNot
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@atulgupta330, I am not currently long, just considering it. Certainly going long now is high risk, it's right in the "liquidity zone" so it will take some effort to break through to ATH's IMO.
Most likely it'll drop to 40-41 and form a base there, IF it's going to go up. Remember it's the 24th largest holding in SPY so it's at the mercy of the market.
drharrison1
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I say 100$ in one month
FoxxInvest
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@drharrison1, Apologies, I didnt understand. Did u mean a stock target of $100 ?