Friday, November 17, 2006

Call option trades for today

What a difference a day makes! I ended this week with a couple of good trades.
First, I daytraded some ICE calls:

Like I previously said, I generally try to avoid daytrading American stocks, but in this case, the daytrade in ICE was very low risk and high probability. Basically an explosion-type of surge in buying volume. That was just too good to pass up.
Next, I bought some BIDU calls (but probably not enough in retrospect, oh well):
BIDU is a good example of what leaders do: they lead. On a day when the rest of the Naz was sold off and down, BIDU did NOT fill the gap from yesterday. Of course, that doesn't mean that the gap won't be filled. But one characteristic of these leaders is that they attract buyers. Call it the hot money rotating into the hot sector, or some momo with some mojo, but BIDU has what it takes to be a leader. BIDU will be the leader at least until it shows us that it is no longer a leader. Innocent until proven guilty.


Cal said...

Nice Trade on ICE!

Phileo said...

I've learned to recognize this pattern - it's what the HighChartPattern guys call "base and explode"

I don't come across it too often, so I had to take advantage of it when it happened right before my eyes!