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Stock Advice Thread

Oh, I guess I should also ask, does anyone have an interest in getting a glimpse of what one might look for when Swing Trading off of a stock's chart? Granted, I always find it helpful to record my own thought process on a stock, as I can then review where it went wrong and/or right, but I'm not sure I should take the time to put it out here on this Forum if no one really cares or has an interest in chiming-in.

Thanks for letting me know either way. I won't be offended if no one has an interest.
 
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lz said:
Impressive, Dayton, did you ever mix teaching among your pursuits? You could have.
Click to expand...

Hahaha, thanks. I've been told that within public accounting and thus trained interns and gave internal presentations on new tax laws, presentations on implementing a national tax compliance re-engineering process at the local Deloitte office, and then using a "teaching" manner in front of a judge when giving expert witness testimony on business valuations, etc
 
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In the interim, I share the link to my marked-up Chart on CGC from today. The small amount of options to Swing Trade that I grabbed in haste on Friday were a mistake; fortunately I knew I was doing out of impulse reaction and only picked up an amount that equates to less than 1% of trading portfolio size. Before adding to the position to bring it to a 2-3% position, the correct thing is for me to wait for the stock to break out above the the descending red line (currently ends-up just below 47.5, but will be less if stock continues to drift), while also showing the A/D line and/or even more so the OBV line reverse to trend back upwards. I'll want to see 8-day moving average line (white) to crossover the 13-day MA line as the confirmation signal.

The horizontal line at around 41ish is a support area that I prefer the stock to not breach. If it does, then we could see a test of the 50-day MA (blue) as support. Not what I want, I want the stock to stay above the 41ish horizontal line during this retraction/consolidation, and then break up above that descending red line on better than average volume. If it does, then you can see resistance at around 52ish, with the next area of resistance being 57ish and then just under 60.

You can see from the current upward channel lines, which if the stock continues to follow, show a price target of eventually mid 70's to 80. Yes, I said that.

CGC

http://schrts.co/AqBHeKwU
 
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Okay, to follow-up on STNE. I have found the call option with the right expiration date, strike price and open interest/volume for me to utilize in initiating a Swing Trade with options on Monday - Tuesday, depending on the stock's price/volume action. I don't want to chase it if it opens up moving even higher, i.e., I'm hoping for a little pause/pullback/consolidation so that I can enter at no more the current Theoretical Value at Friday's close. Remember, the correct time for me to initiate was Wed./Thur, so I've missed around $1.50 of the move.

Here's the option I will enter if stock doesn't get away from me on Monday/Tuesday:

Buy STNE July 19th CALLS with a strike price of $30 that currently shows a Theoretical Value of $1.93, i.e., a cost of $193 for each contract that represents the right to buy 100 shares at $30 anytime up to its expiration date of July 19th. I have determined that the correct position size for me will be 4 - 6 contracts.

I do not need to, nor will I research the fundamentals of this company, as it is strictly a Swing Trade with options. Plus, with lz and Warren Buffett already in this name, I can place some confidence in that smarter minds than myself have already done the fundamental due diligence.

Bucket, I will post exactly what I end up doing on the day that I do it. When swing trading with options, one risks 100% for the opportunity of a much larger % return over a few days to few months period of time. I'm willing to accept an $800 - $1200 loss (100%) with a Swing on STNE based on its chart.

I'll also let you know if and when I go a full swing on CGC, but that may be awhile as I have to wait for the technical signals to go green.

Let's see how it plays out. Oh, and I know there's got to be someone out there who is thinking: Stop! Enough of that voodoo, technical analysis nonsense.:smiley:
 
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I might add: there are indicators showing that we are due for an overall pull back on the indices and that there is pretty good resistance just ahead on the SPX and NDX, etc. A pull back here at these levels, which may certainly occur within the next few weeks, will actually be a healthy pause/consolidation. I would not be surprised by a 2 - 5% pull back. That being said, such a pull back hasn't begun yet, so one has to keep with the current trend (up) as there is no predicting the exact timing of when we'll see the pull back (you know it when it market tells you by it actually happening). Utilizing the July options on STNE will allow ample time should that pull back occur soon after I initiate the Swing Trade.
 
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DaytonKat said:
Okay, to follow-up on STNE. I have found the call option with the right expiration date, strike price and open interest/volume for me to utilize in initiating a Swing Trade with options on Monday - Tuesday, depending on the stock's price/volume action. I don't want to chase it if it opens up moving even higher, i.e., I'm hoping for a little pause/pullback/consolidation so that I can enter at no more the current Theoretical Value at Friday's close. Remember, the correct time for me to initiate was Wed./Thur, so I've missed around $1.50 of the move.

Here's the option I will enter if stock doesn't get away from me on Monday/Tuesday:

Buy STNE July 19th CALLS with a strike price of $30 that currently shows a Theoretical Value of $1.93, i.e., a cost of $193 for each contract that represents the right to buy 100 shares at $30 anytime up to its expiration date of July 19th. I have determined that the correct position size for me will be 4 - 6 contracts.

I do not need to, nor will I research the fundamentals of this company, as it is strictly a Swing Trade with options. Plus, with lz and Warren Buffett already in this name, I can place some confidence in that smarter minds than myself have already done the fundamental due diligence.

Bucket, I will post exactly what I end up doing on the day that I do it. When swing trading with options, one risks 100% for the opportunity of a much larger % return over a few days to few months period of time. I'm willing to accept an $800 - $1200 loss (100%) with a Swing on STNE based on its chart.

I'll also let you know if and when I go a full swing on CGC, but that may be awhile as I have to wait for the technical signals to go green.

Let's see how it plays out. Oh, and I know there's got to be someone out there who is thinking: Stop! Enough of that voodoo, technical analysis nonsense.:smiley:
Click to expand...
Just think, we’re all probably outperforming Buffet % wise the last week or two!
 
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DaytonKat said:
I might add: there are indicators showing that we are due for an overall pull back on the indices and that there is pretty good resistance just ahead on the SPX and NDX, etc. A pull back here at these levels, which may certainly occur within the next few weeks, will actually be a healthy pause/consolidation. I would not be surprised by a 2 - 5% pull back. That being said, such a pull back hasn't begun yet, so one has to keep with the current trend (up) as there is no predicting the exact timing of when we'll see the pull back (you know it when it market tells you by it actually happening). Utilizing the July options on STNE will allow ample time should that pull back occur soon after I initiate the Swing Trade.
Click to expand...

:joy::joy:

Good lord, you are full of shit.
 
Thanks, BlueRaider. That knowledge, while I have studied and put in the work, could never have been acquired without the other people sharing their knowledge and experience with the rest of us. I give you the Top 10 in my library:

1.Robert Edwards and John Magee in "Technical Analysis of Stock Trends" (if interested, stick with the 5th, 6th or 7th edition, not later)

2 Edwin Lefevre's biography of Jesse Livermore in "Reminiscences of a Stock Operator"

3. William J. O'Neil in "How to Make Money in Stocks"

4. Gerald Loeb in "The Battle for Investment Survival"

5. Humphrey Neill in "Tape Reading and Market Tactics"

6. Teresa Aligood and Jesse Livermore in "How to Trade in Stocks: The Livermore Formula for Combining Time Element and Price"

7. Jesse Livermore and Richard Wyckoff in "Jesse Livermore's Methods of Trading Stocks"

8. Richard Wyckoff's work in "Stock Market Technique, No. 1", Stock Market Technique, No. 2" and "Studies in Tape Reading"

9. Nicolas Darvas in "How I made $2,000,000 in the Stock Market"

10. Jack Schwager in "Market Wizards; Interviews with Top Traders"
 
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STNE has several positive momentum indicators so I would only imagine calls have gotten more expensive as well. That said, I have ZERO idea as to the option strategy to choose which is why I don't play options.

Seeing that you are calling it a trade, I expect you'll be selling these calls before expiration with no intention of owning shares. In that aspect, it seems to be a plausible trade although one indicator, RSI, shows it in overbought territory. Maybe why you're looking for a pullback. Is this as desirable as if wanting an entry point to own it outright? I certainly don't want to pay up for anything.
 
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jameslee32 said:
STNE has several positive momentum indicators so I would only imagine calls have gotten more expensive as well. That said, I have ZERO idea as to the option strategy to choose which is why I don't play options.

Seeing that you are calling it a trade, I expect you'll be selling these calls before expiration with no intention of owning shares. In that aspect, it seems to be a plausible trade although one indicator, RSI, shows it in overbought territory. Maybe why you're looking for a pullback. Is this as desirable as if wanting an entry point to own it outright? I certainly don't want to pay up for anything.
Click to expand...

The points you make are quite valid. As mentioned, the correct time to initiate the Swing Trade was on Wed/Thur. Why didn't I? STNE was not on my watch list; don't recall ever seeing it pop-up on any my screens. Why am I looking at it now? lz mentioned it and after looking at the chart I decided I could use it to show others here what I saw from the chart. Depending on what Monday's action shows, I'll ultimately decide whether to initiate or not, but I am now prepared to initiate given that it doesn't get away from me. As I've mentioned, I missed the first $1.50 from my proper entry and that has made those calls more expensive, just as you point out.

You are correct, I have no intention of owning shares in STNE at this time. I own shares of companies over in my "investment" account, I think I have shared all 20 or so names. All of the companies in my investment account I purchased "after" doing hours upon hours of research of the fundamentals (I read 10-Q's, 10-K's, and other SEC filings, listen to conference calls, review the history and backgrounds of the top executives, try to gain an understanding of potential for growth over next 3 - 5 years, etc., etc.) I have not performed any research of STNE's fundamentals. Here's what I do know from the chart and from lz's post: Recent IPO; Brazilian company; is in a currently desirable/hot space/sector---"payments"; Berkshire Hathaway and lz, who are both known to do their homework before making a purchase, have purchased shares; Brazilians recently elected a conservative, pro-business president; the market is in an uptrend; the stock is in an uptrend.

Correct, I have no intention of exercising the call options----correct, I am utilizing options to swing trade, i.e., I will sell the calls and is why I mentioned that I look at the activity and open interest of the various options available on a stock. The one I ultimately selected in order to be prepared in advance should I decide to initiate based on Monday's action, had a volume of 76 on Friday, and an open interest of 417.

I spend hours of preparation each weekend and most every late night just to get something on or to update my watch list, doesn't mean I'll automatically initiate a trade, but I'll be prepared to at any moment, i.e., I won't need to spend the time finding the right expiration, strike price, position size, etc., during trading hours.

In re to RSI indicator (momentum oscillator) showing overbought. Using Wilder's default provisions of a 14-day look back period and using over 70 as overbought and under 30 as oversold, that is correct.....by Wilder's textbook definition. That being said, momentum oscillators can become overbought (oversold) and remain so in a strong up (down) trend. Also, when applying to Swing Trades (which for me can be 2-days to 6 weeks or so), many traders (including myself) use above 80 as overbought and 20 as oversold.

I'm going to repeat something that is very important that is often overlooked/forgotten by many: Momentum oscillators can become overbought (oversold) and remain so in a strong up (down) trend.

I'll use a chart of a stock I purchased at $71.04 in late January that is now sitting at $82.46 as an example of what I'm referring to in re to RSI over 70:

KEYS

http://schrts.co/YIGIyBRm

I own the stock in my investment account, purchased at 71.04 at a time when RSI had just crossed over 70. I also subsequently purchased Call Options (all purchased after RSI was clearly above 70) as a Swing Trade in my trading account and then sold off a part on Thursday prior to the release of ER after-the-close, and then another part on Friday on its stalled surge after the stellar report. I have a 1/4 of my options swing left and may exit those as soon as tomorrow. These option trades on KEYS have generated 400+% gain. I will keep the shares in my investment account as I own the company over there for fundamental reasons (see 2nd quote from Jesse Livermore below).

Can you see that there are so many things (variables) that go into the trading decisions I make and there is no one size fits all? What's the key? To play off that old adage from real estate investors: Preparation, preparation, preparation.

“BUY RISING STOCKS AND SELL FALLING STOCKS” Jesse Livermore

Now, when it comes to those shares over in my investment account, I like to remember another quote from Jesse Livermore:

“Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money.”
 
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First post here but have been trading for about 20 years....bought some RKDA last week at 5.33....looking for 8 first...then 10ish....mental stop just under 5

We'll see...
 
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catrecruit said:
First post here but have been trading for about 20 years....bought some RKDA last week at 5.33....looking for 8 first...then 10ish....mental stop just under 5

We'll see...
Click to expand...

Nice pop recently from $4 to 5.50. I looked at the Chart, I like it. I see that's it's at a key resistance this morning. I drew another resistance around $7 and then just above $8.

I then went to see its options chain, but doesn't trade options. I was looking to swing if it clears on thru $5.70 - $5.75 with a target of $7, then 8.15, but I swing with options.

Thanks for the post, and welcome....post often!
 
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DaytonKat said:
The points you make are quite valid. As mentioned, the correct time to initiate the Swing Trade was on Wed/Thur. Why didn't I? STNE was not on my watch list; don't recall ever seeing it pop-up on any my screens. Why am I looking at it now? lz mentioned it and after looking at the chart I decided I could use it to show others here what I saw from the chart. Depending on what Monday's action shows, I'll ultimately decide whether to initiate or not, but I am now prepared to initiate given that it doesn't get away from me. As I've mentioned, I missed the first $1.50 from my proper entry and that has made those calls more expensive, just as you point out.

You are correct, I have no intention of owning shares in STNE at this time. I own shares of companies over in my "investment" account, I think I have shared all 20 or so names. All of the companies in my investment account I purchased "after" doing hours upon hours of research of the fundamentals (I read 10-Q's, 10-K's, and other SEC filings, listen to conference calls, review the history and backgrounds of the top executives, try to gain an understanding of potential for growth over next 3 - 5 years, etc., etc.) I have not performed any research of STNE's fundamentals. Here's what I do know from the chart and from lz's post: Recent IPO; Brazilian company; is in a currently desirable/hot space/sector---"payments"; Berkshire Hathaway and lz, who are both known to do their homework before making a purchase, have purchased shares; Brazilians recently elected a conservative, pro-business president; the market is in an uptrend; the stock is in an uptrend.

Correct, I have no intention of exercising the call options----correct, I am utilizing options to swing trade, i.e., I will sell the calls and is why I mentioned that I look at the activity and open interest of the various options available on a stock. The one I ultimately selected in order to be prepared in advance should I decide to initiate based on Monday's action, had a volume of 76 on Friday, and an open interest of 417.

I spend hours of preparation each weekend and most every late night just to get something on or to update my watch list, doesn't mean I'll automatically initiate a trade, but I'll be prepared to at any moment, i.e., I won't need to spend the time finding the right expiration, strike price, position size, etc., during trading hours.

In re to RSI indicator (momentum oscillator) showing overbought. Using Wilder's default provisions of a 14-day look back period and using over 70 as overbought and under 30 as oversold, that is correct.....by Wilder's textbook definition. That being said, momentum oscillators can become overbought (oversold) and remain so in a strong up (down) trend. Also, when applying to Swing Trades (which for me can be 2-days to 6 weeks or so), many traders (including myself) use above 80 as overbought and 20 as oversold.

I'm going to repeat something that is very important that is often overlooked/forgotten by many: Momentum oscillators can become overbought (oversold) and remain so in a strong up (down) trend.

I'll use a chart of a stock I purchased at $71.04 in late January that is now sitting at $82.46 as an example of what I'm referring to in re to RSI over 70:

KEYS

http://schrts.co/YIGIyBRm

I own the stock in my investment account, purchased at 71.04 at a time when RSI had just crossed over 70. I also subsequently purchased Call Options (all purchased after RSI was clearly above 70) as a Swing Trade in my trading account and then sold off a part on Thursday prior to the release of ER after-the-close, and then another part on Friday on its stalled surge after the stellar report. I have a 1/4 of my options swing left and may exit those as soon as tomorrow. These option trades on KEYS have generated 400+% gain. I will keep the shares in my investment account as I own the company over there for fundamental reasons (see 2nd quote from Jesse Livermore below).

Can you see that there are so many things (variables) that go into the trading decisions I make and there is no one size fits all? What's the key? To play off that old adage from real estate investors: Preparation, preparation, preparation.

“BUY RISING STOCKS AND SELL FALLING STOCKS” Jesse Livermore

Now, when it comes to those shares over in my investment account, I like to remember another quote from Jesse Livermore:

“Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money.”
Click to expand...
Wow!! Congrats on Keys! I get excited over a 30% gain.
 
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catrecruit said:
First post here but have been trading for about 20 years....bought some RKDA last week at 5.33....looking for 8 first...then 10ish....mental stop just under 5

We'll see...
Click to expand...
Welcome aboard, cat!
 
DaytonKat said:
I did put a limit order in @ $2.15 to buy 4 of the July 19th $30 calls, but with the stock trading up this morning, the ask has moved up to $3.25. I don't want to chase. I'll sit tight for the time being.
Click to expand...

STNE closes strong @ 29.35. I raised my bid once this morning up to $2.25. No chance of getting filled. It would take a bid of $3.35 now to get filled. So Theoretical Value at the close on Friday was $1.93, now at the end of today it's $3.35.

Looks like this one has gotten away from me, for now. I'll keep on my watch list. Nice action on STNE there, lz. Thanks for putting it out there as something you bought.
 
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DaytonKat said:
STNE closes strong @ 29.35. I raised my bid once this morning up to $2.25. No chance of getting filled. It would take a bid of $3.35 now to get filled. So Theoretical Value at the close on Friday was $1.93, now at the end of today it's $3.35.

Looks like this one has gotten away from me, for now. I'll keep on my watch list. Nice action on STNE there, lz. Thanks for putting it out there as something you bought.
Click to expand...
The eps report for STNE is due perhaps today after hours, never know when that might be on foreign stocks. I bought a bit of IAC today, would not recommend as it’s probably close to fully priced and needs to digest a bunch of iteractive companies it has gobbled the past year. Either they are going to be the AMZN of online interactive services or a company that has di-worsified (Peter Lynch word I love) into too many areas.
 
Initiated a swing trade on AERI on Feb 12th and added on Feb 20th with both the APR and MAY 45 CALLS. With today's post-ER pop, sold off a tranche

Holding balance with Targets of 51, 57 and 60
 
DaytonKat said:
Looking to add 3 more companies and cap at 10 individual stocks. Typically try to find a company who will benefit from being in the early stage of adoption of some innovation and/or trend, so themes like Big Data, IoT, Advances in Medicine/Healthcare, Self-driving cars, AI, Cloud, Millennium consumerism/housing and......the acceptance/adoption of medical and even recreational marijuana.

1 of my last 3 picks may be a bundle of 3 or 4 smaller marijuana company names that when added together equal a full position. I'm currently reading and learning more about the following 3 marijuana stocks:

HEXO Corp ((HYYDF)
Innovative Industrial Properties (IIPR) - a REIT that that buys then leases back industrial property to the producer
CannTrust Holdings (CNNT)

Oh, I bought each of these with the objective of finding a company or two that will be a multi-bagger over the next 3 - 8 years. While the mult-baggers can typically take years, especially if we're talking generational wealth producing gains, I'm not adverse to trading around a core position, using LEAPs, strategically adding to a position, using mental stops (including trailing), etc.

For example, given the current volatility in the Marijuana/Cannabis Sector, I will have no problem selling some or all of the CGC I bought a few days ago ($30.35) if it quickly runs toward $50 this coming week and pushes up against overhead resistance while technicals reflect overbought. If and when situations like that present themselves, one of course hopes to fully re-stock his position upon a healthy pullback, but as we all know, there's often just no telling whether we end up getting cute thinking we'll buy back in lower, only to watch the stock make another 30% mover upward, lol.

Let's make 2019 a year to remember----on the upside!
Click to expand...

I'm not the only who had mentioned CannTrust; there was someone else who was buying? James Lee, Blue Raider?
 
DaytonKat said:
I'm not the only who had mentioned CannTrust; there was someone else who was buying? James Lee, Blue Raider?
Click to expand...


I haven't yet. It might be a good buy. I knew it was coming.....just didn't know when. A month ago I heard rumors of Hexo and CannTrust going NYSE. Hexo announced a release date amount a month or so ago, but at that time CannTrust was only a rumor. So, I jumped on Hexo......especially due to the Quebec contract with Molson backing them up.

Kind of bad timing right now because we have a few other family obligations we have to take care of, but if I had a few hundred right now I'd give em a shot (I think Jefferies just listed them as a buy).......but I wouldn't divert too much into them.
 
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Fellers, quick note----I said I'd note it, so here it is----I did add to my option swing on CGC today. I'll follow-up with a look at the chart later when I get a break.
 
DaytonKat said:
Fellers, quick note----I said I'd note it, so here it is----I did add to my option swing on CGC today. I'll follow-up with a look at the chart later when I get a break.
Click to expand...

Okay, if you recall the chart I provided over the weekend for CGC, well I saved that chart and I'm going to link it here again this evening to show where I have extended the lower trend channel line (overall uptrend), as well as the descending flag/pennant top line. You'll see them where they almost come together around the the 45.50ish to 46.60ish area, respectively.

Here's what I did today and why: This morning we saw that we opened lower than yesterday's close, and only went .09 lower before showing a reversal upward. As the day went on, it became apparent that the bulls were in control, as pretty much each little flag/pennant/wedge on the intraday was a bullish one that resulted in a move higher.
Based on what the action was showing on the intraday, as well as already knowing how that in turn shaped-up on the daily, I picked-up a relatively small amount of the following call options as more of a 2 - 14 day day mini swing trade:

March 17th, $52.50 @ 0.26. i.e, $26 for each contract.

As I mentioned in the post above from over the weekend, what I am really wanting to see is a break on thru and above that descending upward pennant line on a nice surge in volume. Again, from looking at what I've drawn, that would be on thru and above the $46.60 - $46.70. If we do get that tomorrow, again want to see volume push on up thru and above, then the right thing for me to do is go with a full swing trade.

Let see what happens tomorrow. Here's the CGC chart from over the weekend with the lines extended and 3 more arrows drawn. Left everything else the same. Also note, that I drew an arrow close the left margin to show where the 8-day moving average is slightly above the 13-day (recall that I use such a crossover as a signal, be it as an early indicator or as a clear confirmation; too soon/early here to go with any size, so that's part of why I didn't go with a bigger position.....yet).

http://schrts.co/edeHxHku
 
jameslee32 said:
Not me. I bought some ACB at $7. Taking off after the Jefferies recommendation. [thumb2]
Click to expand...

I went to initiate a small swing with options on ACB this afternoon, but had to take a conference call at 2:30 that lasted past 4 p.m. Why did I go to initiate? Because today's action appeared to confirm a breakout yesterday from a wedge. Now looking for it to move upward toward resistance in the $8.50 - $8.60 area. If it can get thru that resistance area conclusively, I can see it going on without much resistance to mid $10ish. (Not a bad move from today"s open at $7.39)

In addition to what I did with CGC as noted in preceding post, I did initiate a part position swing on APHA. As with CGC, if I see what I'm looking for tomorrow (first needs to take out $10.60ish (top line of the wedge), but more importantly needs to clear the $10.95 - $11.00 resistance area with volume, then I will complete the swing position on APHA with a target of $13.75 to $14 initially.
 
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STNE - I tried again today on those options when stock traded down to $27.60's. They were not lowering the ask enough. Still no STNE for me.

I did get a nice pop today on the AERI options I bought recently. I wasn't expecting it to run up as much as it did---caught me off guard and wasn't sure how much to sell, if any. Tomorrow I have exposure to 2 ER from after today's close, and one that releases in in the morning before the open. VEEV, PLNT and AMRN. Earnings season gets the blood flow going! Honey I'm home!!!! :cool2:
 
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STNE: @ $32.20. Hits what I had drawn as the upper resistance on the chart I shared over the past weekend (see below link where I have not re-drawn any or extended any of my red lines or arrows, only the subsequent days price/volume action appears, etc., i.e., Mon - Wed).

Unfortunately, I never got the entry that I wanted and I was not able to participate in the classic example of the exact type of set-up/trade that I like. Great teaching example though.

To update those options that I had identified over the weekend:

STNE July 19th CALLS $30.00 are now worth $530 a contract. If you recall from my post over the past weekend, those same calls closed the day on Friday, the 22nd) at $193 per contract. On Monday's open, the stock gapped-up on the open, I placed a bid of $215 per contract, and then raised to $225 per contract. I was trying to buy 4 contracts, i.e., I was hoping to risk $860 to $900 on the trade. Simple math tells us that those same 4 contracts would now go for $2,120.

Also, if you recall, the proper entry point on the trade (entirely based on the chart) was on last Wed. afternoon/Thur. morning. At that time those July 30's were going for around $95 contract. Unfortunately, I did not have STNE on my watch list until lz subsequently mentioned it in a list of names he was on.

You can do the math on what the return has been on those contracts based on buying correctly last Wed/Thur.

If I had been on the trade from either the correct entry, or from a late entry on Monday morning, I would have sold 1/2 the position yesterday when the stock hit the $32.00 target to take down a very nice quick profit, and then left the other 1/2 position open for the potential of additional profit (remember, the expiration date on the targeted options isn't until July 19th).

What will I do now? I'll keep STNE on my watch list to see if it consolidates for a bit and provides an opportunity for another early break-out type entry. Look at the chart, the stock is now back to where it traded last year when it was brought to market. There is no more overhead resistance once it firmly establishes itself above that threshold. In other words, lz could be holding a stock that doubles this year. Let's see what happens.

Keep posting what you find out there guys. lz, thanks for sharing your list so that the rest of us could take a look to see if anything interested us.

Link for current chart of STNE:

http://schrts.co/nCrtxAcy
 
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CGC: @ $45.75. To update: I did not do anything new with CGC yesterday; it's still on watch for a break out move with good volume. I currently have the small amount of options I bought late last week and added to on Tuesday. Those two buys, while they may turn out, were not correct. Why were they not correct? Because I breached waiting until the buy on break out signal was triggered. Why did I do make the mistake? Human weakness, not sufficient discipline. Will it cost me? Very may well cost me. How much? I currently have a relatively smaller position with a cost of around $530 (20 contracts of the Mar 15th $52.50's).

I'm going to provide a link to CGC chart as I'd like to point something out to anyone who has been following along. When you pull-up the CGC chart below, you will notice that I've added one new indicator at the bottom. The new indicator I've added is to show the Bollinger Band Width. The general rule-of-thumb for this indicator is that when the width of the Bollinger Band gets relatively narrow (relative for the particular stock in question), then a sharp price break in either direction is near.

To provide further information on BB Width Indicator: Bollinger Band Width is best known for identifying The Squeeze. This occurs when volatility falls to a very low level, as evidenced by the narrowing bands. The upper and lower bands are based on the standard deviation, which is a measure of volatility. The bands narrow as price flattens or moves within a relatively narrow range. The theory is that periods of low volatility are followed by periods of high volatility. Relatively narrow Band Width (a.k.a. the Squeeze) can foreshadow a significant advance or decline. After a Squeeze, a price surge and subsequent band break signal the start of a new move.

I have drawn downward pointing arrows to show where the Band Width has reached its narrowest points during the last 8 months. Now look up to see what happened subsequent to those preceding low points, i.e., was there a sharp movement in the stock's price? The direction of either up or down is not predicted by the BB Width Squeeze; only that is predicts increased volatility (sharp price movement). It doesn't predict the "when" either, i.e., CGC could continue with low price volatility for quite some time. Look back to the low volatility from Oct. 01 to around Oct. 22nd; the BB Width line shows that it stayed relatively narrow for around 3 weeks, and then on the 21st - 22nd the line turns sharply upward; then look upward at price movement---high 40's to 32ish in a week!

Right now the BB Width measurement line still shows a downward direction, i.e., narrowing. While I did not plot the upper and lower Band Width lines on the price chart, I can tell you that they are 49.99 and 42.79, respectively. The Band Width indicator can be used to identify the Bollinger Band Squeeze. This alerts you to prepare for a move, but direction depends on the subsequent band break. A squeeze followed by a break above the upper band is bullish, while a squeeze followed by a break below the lower band is bearish. Be careful of head-fakes however. Sometimes the first break fails to hold as prices reverse the other way. Strong breaks hold and seldom look back. An upside breakout followed by an immediate pullback should serve as a warning.

What do I hope to see? I want to see price with volume push convincingly thru that descending red line just above current price, i.e., the line now reflects around $46.40 - $46.50. What will I do if it does? I will add another 10 - 20 of those same March 15th $52.50 calls. But price hasn't broken the upper BB Width line of $49.99? Correct, I am willing to take the calculated risk in losing 100% of what $ I put into the position. What happens if the early price break up is a head fake and it then falls to break down thru the lower BB Width line of $42.79? Katy, bar the door!!!

Let's see what happens.......

Link to Chart for CGC

http://schrts.co/ysIrKuyK
 
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Added 10 more of the same CGC Mar 15 $52.50's.....paid more $44 a contract, versus $26 a contract on Tuesday.

Did I do so on Blue Raider and Marth Stewart? jajajaja
 
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Out RKDA at 8.03 from 5.33 x 1500....still in a little STMP at 98.30 unfortunately....but looks like it's trying to turn

AYTU watching....didn't do what the chart looked like it would so held off for now

Eye on CLVS
 
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