Related Article: Part 1 | Part 3 | Part 4 | Part 5 | Part 6
Our Holdings (Daily-Charts)
Above chart featured on the previous article on 1/11/15
Earlier this morning, we’ve decided to close most of our call-positions to lock-in profit (still holding marginal positions on it though). We held our positions over three-months and we are very satisfied with the gain. I didn’t think we are going to get to $18-area this quickly, but it did and you have to take whatever the market gives you. I think we can probably grind higher, possibly, for the remainder of this week but I do think we are getting into an “extended” area.
Weekly Notes (Weekly-Chart)
This weekly-chart with oscillators getting into that “overbought” territory (see arrows) along with the price-action which is indicating that the resistance from the early-2007 might be the level to watch; we thought this was a good level to take profits, and wait for a pullback to possibly add more. Just because oscillators at a “overbought” territory does not mean the stock must roll-over, but it does mean we may start to see some weakness or slowdown at this level. Roll-over is also possible, but we can not conclude (as of today) that’s is what is likely to come imminently.
Historical Perspective (Monthly-Chart)
Above chart featured on the previous article on 1/11/15
As you can see on the charts above, Boston Scientific (BSX) had phenomenal run last three months, however I cannot say that because we’ve had three-months of bullish run that it must roll-over. We may even have another month of bullish run if we can break well above the resistance-level on the weekly-chart I’ve depicted on this post; but as you saw on that weekly-chart, buyers are maybe starting to get diminished at this level going forward. Obviously, chart looks healthy and still looks strong, but I am wondering though if we are going to have shake-out before another run. We still think Boston Scientific can have another monstrous run, but we thought it was a prudent thing to do by closing most of our positions and take profit and wait for a pullback to possibly add more.
8 thoughts on “BSX Calls – PART 2”
Hey Kay not sure if you ever mentioned it but do you roll your options on a monthly or quarterly basis or simply buy 3, 6, 9 etc… months away and hold until your target is reached?
Dorahc22 yes i have cuz i get this question alot… i always buy deep In The Money LEAPS (expiration 1 year out). These are very expensive options
2kaykim Yea I thought you may have, thanks for answering again and yea i’m sure they are expensive that far out i always worry about time decay i had a target on $GPRO to $37 bucks months ago but I did not know how to play it long term
2kaykim Does the Delta on those options fluctuate up and down when you go that far out, i would think if it goes against you time is on your side but premium is getting sucked out bringing your position lower
Dorahc22 2kaykim yea i wouldn’t recommend buying cheap OTM options for trend trading. Most traders get sucked into buying cheap OTM options to get HUGE ROI but its worse than gambling…
Dorahc22 2kaykim no these options are very stable. I don’t pay too much attention to it on a daily basis but basically I can risk 20-30% for 100% gain.
2kaykim Nice keep up the great work man, anyone who laughs at tech analysis needs to check out your site, i think you are the best
Dorahc22 2kaykim hey thank you for saying that~~