|
OK, SOLF closed at $37.64 +$0.69 with my 4 SOLF Jan. 35 calls now at $4.30.
FDX closed at $84.10 -$3.21 with my 10 FDX Jan. 85 puts now at $2.40.
My total account isn't too bad as it currently stands at $8,490.01. Again, the key here is to allow the account to grow one day at a time. I have set up stop losses for both trades with FDX put stops in at $1.00 and SOLF call stops in at $2.75.
Reasons for buying FDX puts and SOLF calls:
FDX: Fed Ex has clearly been poor and I made some money on FDX puts back in November. Here it is again. After some research, it's clear that FDX broke support at $90, but I also noticed a potential flag formation at $85 and this bear flag comes with an $80 target. I will give FDX 2 weeks to complete the target as the flag formation only took a few days. If the target is hit, my put options should give me a nice return, and I'm willing to risk $1 for a potential $2.50 back.
SOLF: Solarfun Power holdings has been on a tear in the past 1-2 months only. I should have bought it on the breakout back at $17, but volume was too light then. SOLF then went into another 2-3 week correction in December before breaking higher in the past 2 weeks. Well, the chart shows a bull flag with a target of about $42-$43. The bull flag took about a week, so 2 weeks time to reach its target should be plenty of time. Volume to the upside has been very strong, especially when compared to the downside over the past few days. Even better is the fact that short interest stands at 3.26M shares shorted, and that's an increase of 400% since last April. Ouch to those short sellers. There are only 4 analyst with all rating this stock a hold. Any upgrade will bring in new buyers that will only help my cause. The upside pressure is so much greater that even I noticed SOLF couldn't finish the day lower.
Well too much details, hope that helped. Here's another stock I like: HOLX (Hologics, Inc.)
|