I do not trade slams. For some reason SLAMS, for me anyway, do not work as well as PEAKS.
Watching CNBC this morning helped me pick my trades (yes 3 of them) this morning.
I traded TSLA (PUT) and Z (Put).
On TSLA I waited to get in after the stock had a small pull back off the open. I watched my 5 E chart for a directional change from the pull back. I entered the trade after the close of the 9:40 candle. I watched the 5 and the 20 for a signal to buy a PUT. Why there? I knew that my PUT purchase would be cheaper and I was 99.99999% sure TSLA would go down because of
guidance...not earnings. TSLA could become a Dead Cat Bounce (similar to SLAMS). I bought 5 Nov week 2 contracts ($6.40) and sold ($9.75) when the 21 and 34 chart hit the over sold in the stoch RSI. My profit was $1,644.69.
My second trade is Z. Just sold @11:09. I bought 10 Nov week 2 contracts for $2.75 and sold @ $6.10. My profit was $3,319.69
Z was a PEAK play. I noted that it was outside the Bollinger Bands. I left when the stock hit into the Stock RSI over sold area.
I am in another trade but I haven't sold yet. The way it is bouncing I think I will get out of the trade now. It is BIDU. I am up $225.00 on 5 contracts. I think it will bump along here for a while. It is moving really slow and by the looks of the 233 it may stay there for a while.
---------11/7/13
ADD: Traded TSLA again today. TSLA pulled back on my 5 E chart.As soon as the red candle finished @10:05 and I saw the candle on the 5 E chart turning red on its open @ 10:10 I jumped on the trade. I saw where I had more room on the 21 for a down move so I thought I would just get a little $'s while all the talking heads were gabbing about TWTR.
I bought 10 contracts @ 3.25 and sold @ 4.60 making $1,319.80. Why did I watch TSLA again when the 55 was showing over sold? The Daily was giving me a FP, MACD was looking good on the Daily and there was a slight pull back. On top of that yesterday the talking heads were dogging the stock after the close (after Maria). I figured the pressure to sell TSLA stock was greater than the reason to buy on the dip. I had E on the 3,5,10, 13 and 21. I am done for the day. The only thing people seem to be talking about is TWTR. That
IS a stock I am adding to my basket.
Edited 1 time(s). Last edit at 11/07/2013 12:17PM by Darcy2.