Two men whipsawing lumber in British Columbia circa 1898 h/t Eric A. Hegg
“Consolidations are traders’ markets, in both directions.”
— Steve Rhodes
Markets move between areas of support (demand) and resistance (supply). In a large market consolidation, whipsaw action is not unusual. It provides opportunity for nimble traders to profit from moves up and down.
Option buyers are the only ones who possess the Superleverage power of unlimited profit potential with an always known and strictly limited risk.
Good luck in your trading!
Erasmus Hall High School, Brooklyn, NY h/t Jim Henderson
“If you want to teach someone a real skill, teach him how to fail. He will never learn it in school.”
— Nassim Nicholas Taleb, @nntaleb
h/t The Weather Channel
“The difference between the right word and the almost right word is the difference between lightning and a lightning bug.”
— Mark Twain
“I’ve failed over and over and over again in my life and that is why I succeed.”
— Michael Jordan
Options Hotline Update, FYI: +140% in 2 months on Micron puts
This morning, financial news was blaring about continued US/China trade tensions pressing Tech stocks to the downside. The move lower in Micron reached our $33 price target (see 03-24-19 Options Hotline) and our readers received an email Profit Alert that we would consider the position closed.
The Micron July $40 put, triggered 03-25-19 at $3.00, traded 05-23-19 at $7.20, +140% in just under 2 months, with an always known and strictly limited risk!
That’s the Superleverage power of our method on display.
You can see on my daily candlestick chart of Micron (MU) above, subsequent to our recommendation MU had a quick decline and rebound. Shares then settled into a consolidation, before breaking down, over the past few weeks, to our objective.
Over the years I’ve found that patience tends to pay. If this type of options action is for you, subscribe to Options Hotline today.
Let me know if you have any questions. My email never sleeps.
“If your position sizing is too big, it is a certainty that the account will blow up; not if, just when.”
— Joo Beng
Evel Knievel 1967 h/t Las Vegas News Bureau
“Risk is good. Not properly managing your risk is a dangerous leap.”
— Evel Knievel
“You can’t go back and change the beginning, but you can start where you are and change the ending.”
— C.S. Lewis
Nadal winning in Rome h/t Matteo Ciambelli, Reuters
“You work mentally when you go on the court every day. You don’t complain when you play bad, when you have problems, when you have pains. You put the right attitude, the right face. You are not negative about all the issues that happened…You go on court every day with the passion to keep practicing. That’s the mental work, no?
That’s something that I did during all my career, not being frustrating (sic) when things are not going well, not being too negative. That’s why I was able to always have the chance to be back.
Here we are, important title, important moment. Now is the moment to keep going.”
— Rafael Nadal
Chaos, h/t thenewstack.io
“Our soul is a vast panorama. There is room for so much in us at the same time: Love and treachery, faith and faithlessness, adoration of one person and longing for another, or for several others. We try to bring order into ourselves as best we can, but this order is, after all, something artificial. Our natural state is chaos.”
— Arthur Schnitzler
This quote can be descriptive of economic data and markets. Grasping their chaotic nature can help in wading through information overflow to get to the heart of the matter.
Enjoy the rest of your weekend!