Hi, today we are going to talk about SUPN
We observe a D1, some important points. The details are highlighted above.
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Looks like a bull flag and possible gap fill. If earnings are decent, it should have no problems filling it since >100% of float is owned by institutional holders. It's trading on borrowed shares.
Small play using my WP profits. March 37 calls. Remember, earnings are always a crap shoot.
This is a trade continuation from 8/2.
8/2 Initial trade:
Sold 8/17 $55 Call @ 1.94
Sold 8/17 $50/45 Put Spread @ .56
Total Credit 2.50 (Net 243.50 per contract)
8/9 Rolled Put spread to September:
Rolled 8/17 $50/45 Put spread to 9/21 $50/45 Put Spread for no cost
8/17 $55 Call expired OTM
9/18 Rolled Put Spread to October:
Bought SUPN at $5.65 as an investment, not a trade. In the past I have used collars to provide downside protection. Last collar expired last December. Collars should only be used in limited situation and timing them correctly is very important. It's only truly in hindsight that you can determine if the collar was a good decision. Last two collars worked out...
SUPN seems breaking down from a long upward channel. Money-flow is showing strong divergence. If it breaks down it has huge downward potential. However before we get into the position we like to see a confirmed breakdown.
You can check our detailed analysis on SUPN in the trading room/ Executive summery link here-
LH/LL since peaking at 23.30. From the chart, I don't see any evidence indicating this pattern has changed. There is convergence on the RSI. For now, I expect this pattern to continue.
I have been long since 3/21/2013. My average share price is $5.65. Hindsight...it would have been wise to have sold 1/2 of my position when price was over $20 at 300%...