trhanson 590 Report post Posted October 18, 2012 Right now I'm waffling on trying for the nov $13 calls for around .50-.60, but the OI on that is too low. I think the DEC 12.5 at $1-1.05 may be what I am going to look at. Share this post Link to post Share on other sites
trhanson 590 Report post Posted October 18, 2012 I want to get in on this one, but right now I don't have enough free capital in the account that I make these trades in (I hold stock in that account and usually only trade 10% or so of it in options. Long story short, no capital). This looks like another golden opportunity though. I'd buy the DEC 12.5 at $1.05 if possible. I MAY go as high as 1.10. If I were doing this trade, I'd only put half my max in to see if it drops tomorrow to pick up more again. There is quite a bit of support at 12.30. I'm not wild about the price action today. Yesterday and the day before were both hammers which shows the bulls attempting to gain control. Still early in the day, may get price recovery. As I said, If I had the capital free, I would be in, but I would have to sell a stock position, which takes 3 days to clear and the option only takes 1. I've already gotten a warning about doing that, so I don't think I want to press my luck and only be able to trade with settled funds for 30 days. Share this post Link to post Share on other sites
EricSimpson1 5 Report post Posted October 18, 2012 If it's still down in the 12's or low 13's two weeks from now I might pick up some calls to hold through earnings. I rarely go directional on earnings because usually it's not worth it but in this case I think a lot of negativity is already priced in. Short float and short ratio are still insanely high and it's not too horrible of a company. Share this post Link to post Share on other sites
Guest listolyman Report post Posted October 18, 2012 Skul is down to 12.30 now. Share this post Link to post Share on other sites
trhanson 590 Report post Posted October 18, 2012 At these prices, I've deiced to pull some money from another account to try to get in with half my position. I'm thinking I'm going to try for the NOV 12 calls. Share this post Link to post Share on other sites
JerryJet7 27 Report post Posted October 18, 2012 picked up DEC 12.5 at $.95 Share this post Link to post Share on other sites
EricSimpson1 5 Report post Posted October 18, 2012 Well now it looks very tempting, I'm still going to wait a couple weeks. Many good pre-earnings trades are coming up and I need to focus on those. Good luck to you guys who just bought and don't be surprised to see some manipulation of the stock and a small jump in price at the end of the day today. Share this post Link to post Share on other sites
trhanson 590 Report post Posted October 18, 2012 Same here. Couldn't get action on the NOV calls (just not enough OI. In for half my max at 95 on the DEC 12.5 calls. Gives lots of time for movement I suppose. If SKUL goes to 12 I'll have to reevaluate. Share this post Link to post Share on other sites
EricSimpson1 5 Report post Posted October 18, 2012 Actually nevermind what I just said. I'm going to break all the common trading rules again and chase this stock. This is too good to pass up. Bought some Nov 12 calls at 0.95. Share this post Link to post Share on other sites
jr1221 12 Report post Posted October 19, 2012 Been watching your trade on this. It's in an interesting spot, having dropped a lot today on fairly low volume and hitting an area of strong support. If that support holds, you may get that major short rally you've been waiting for. Do they have upcoming earnings announcement? Share this post Link to post Share on other sites
EricSimpson1 5 Report post Posted October 19, 2012 Been watching your trade on this. It's in an interesting spot, having dropped a lot today on fairly low volume and hitting an area of strong support. If that support holds, you may get that major short rally you've been waiting for. Do they have upcoming earnings announcement? Earnings are 11/1 after close. I'm going to hold through and sell on 11/2, unless it gets above 14 before then. I don't have much money in it so I can take a 100% loss. SODA is another stock that repeatedly bounces off of strong support, but the time frame is a bit shorter and the support changes every few months. Like SKUL it has an extremely high short float(>50%) and short ratio(>10). It also has positive earnings(so the fundamentals aren't completely broken, otherwise it would drop steadily like RSH). Market cap is also at least in the hundreds of millions. If anyone finds more companies with those characteristics let me know. If the chart shows similar behavior to SODA and SKUL, that might be the formula for a great "trading stock." Share this post Link to post Share on other sites
Thaze 4 Report post Posted October 23, 2012 (edited) I trade SODA already and have a pretty decent track record. Buy under 36 and sell for 37-38... Stock seems to have good support around those levels. Edit: Herbalife may be worth looking into for this strategy (needs reviewing). Edited October 23, 2012 by Thaze Share this post Link to post Share on other sites
trhanson 590 Report post Posted October 23, 2012 I actually just sold a position out from HLF. I bought after the Einhorn debacle and thought it would go back to around 60 fairly quickly. Always got to around 52.5-53 and then would head back down to 48. If it goes back down to 48, I'm going to buy again and ride it up to 52-53. Share this post Link to post Share on other sites
EricSimpson1 5 Report post Posted November 2, 2012 Looks like guidance was below expectations. Oh well, out at 0.10. About 90% loss. Share this post Link to post Share on other sites
