Jeff,
On NUVA, I was waiting until it hit $43 because there seemed to be a lack of volume. I was thinking that taking it before seeing all of today's price action would be too aggressive.

I took ZUMZ too soon and the first $90 was getting back to zero. Now I am way past $90 but I hate doing that.

Joel,
I see PCZ a little differently. Even though I'll grant you the triangle... I also see it as a trend trade... in which case there's a 10 pt move but it started back at $54. I got in today but am just anticipating another $5 on it and a much shorter time frame. So I bought super cheap (like me) Dec 60 calls. With looking for a smaller move in a shorter timeframe I'm thinking I probably should have gone with ITM calls but I didn't. Some days it sucks to be me.

But hey, I'm a cheap bugger. All I need is a $2.30 move ($4.60 in the stock with a .5 delta) and I've doubled my money. I sized my position on the small side as I'm feeling a little conservative on this one.

Jeff,
Thanks for bringing up GES. It's on my multi billion stock watchlist but I thought it'd take longer to re-test.

I will hover over my laptop at close... poised to strike.

Jeff,
Could you explain why you would buy puts on GES if it's up strongly on good news. Wouldn't that be stronger than
resistance?
(Not questioning you, just want to understand your thinking.)

Jeff you are the man. Thank you for sharing your knowledge. The reco's are great but what you teach is priceless

Jeff, in a situation like BIDU, or GOOG where they seem to relentlessly move up without much retracement, but you still want to get in, would it be smart or at least smarter, if you got in at a fairly "significant" number like a 100 mark, or in BIDU's case 400, or 700 for GOOG assuming that would be a new support level.

Or would it just be better to let it run or at least let it test those numbers a couple times. In BIDU it looks like the only support in sight besides those possible psychological levels(400 was touched today) is diagonal support at what looks to be about 350.

I don't want to chase, but I also don't want to let some of the biggest moves of the year potentially get away after missing an initial entry.

thanks

Ben

Jeff,

Make more videos!!! (there, how's that for encouragement!).

Can't wait for the video on futures. Is there a futuresaddict.net in the future?

SausalitoMike

HEY! Stop asking Jeff so many questions! I asked first.

Of course, I am kidding. :-)

****************** A LESSON FOR YOU ALL ****************

I'm not a happy camper. That, in and of itself, is neither news, nor a lesson. It's the reason that will cause you all to shed a tear, gnash your teeth, and chug a gallon of wine in sympathy to my lesson.

UA.

Have a look. I got in right at the peak and had set $50 as my target. Yesterday it closed at $51.30 which was "pretty close" as my deficient brain interpreted it. This morning UA opened up about .50 and I thought "well here we go. It didn't quite hit my target so I'll get out with my fairly substantial profits." I sold my Jan 55 puts for $6.60 and a 60% gain. Reckognizing that it's trap had been baited and sprung... UA then proceeded to plummet. Those same options are trading at $8.00 now. Thus my tale of woe.

My exits are my weakness. Waiting for day's end sometimes kills me and sometimes helps me. I throw myself at the mercy of the court. Whichever way I choose always seems to be wrong.

I call for a market cast video. Didn't Eric claim to not trade options or was he joking, I know he said he liked futures, he could get in on the futures video.

We could see the dynamics in action, at least I'd find it funny.

Ben

Chris,

I am sorry that you are watching my trades. Please don't do what I do as it is too much work to make it up again. Maybe I will watch your trades and do the opposite and you can watch mine and do the opposite and we'll both be happy. Of course an anti-anti makes a positive. Blew it again.

Jim

Jym.
With GES Jeff said that if it closes below 45 he'll consider taking it. Right now it's at 46 on the news. If it can't hold that... and it closes below support/resistance at 45 then it shows that the support at 45 is stronger than even this news. If it closes above the 45 mark then the news wins, and the pattern could be broken.

C&C, I follow your logic. I think it will make the target much sooner, but given the choice between the Dec or Mar contract, you get almost 5 months of time for $2. Given the trend, the stock could go much higher by then. Oil that doesn't go down and a US dollar that doesn't go up helps this trade quite bit.

Jeff - anything you want to throw out there on futures would be great and a video would be ... Now I'm getting a little verklempt. Talk amongst yourselves. I'll give you a topic: a Thighmaster is neither a thigh nor a master. Discuss! .. There I feel better. A video on futures would make my day.

C&C,
Thanks

Chris,
I have no pearls of wisdom, however, it does seem to be overextended to the downside. I probably would ahve done the same thing because that $50-51 area has some pretty strong support and the market, overall, feels like it wants to go higher.

I don't know if that's right or wrong but, you know.

UNP - Flag pattern. $125 has held support for the last 3 days and today we have our first slight move to the upside. Could set a pretty tight stop. The pole is an earnings spike, so it must be discounted somewhat. Any thoughts?

Chris, Joel, you guys are really making me laugh today!

Oh, and Joel, I just couldn't resist: verklempt - (adj) overcome with emotion; clenched

Chris, I'll join you in the dunce corner for my premature exit on AMX yesterday. (There. I threw in a ticker symbol, so that makes this a legitimate post, right?) :)

Joel,
I absolutely see your logic on PCZ. I still reserve my right to be a cheap bugger. I've put my target at $64 but I will let it run if it seems so inclined. Thanks for your input. By the way my thoughts on clingwrap vs. teflon pots in the ChitChat section could make a good video Jeff, if you're really on your game.

First let me apologize for a stupid simple question (or not) but I can't recall, or maybe missed it, what the Mark value represents on an option trade. I'm using PaperMoney and in the Acct Staement screen from my options it has Trade Price then Mark? Unfortunatly any search I try with Google nets me all sorts of trade marks :(

Jeff, love the video watch list. The production quality/content is great ... keep up the good work. On a positive note I got stopped out of BIDU this AM with a 30% gain (on the stock). I bought it on the pull back to $305 a few weeks ago.

Jay

EDU - I have been stalking this for a while and today I was looking to get in BUT - the options are crazy high imo,. So then I thought I'd sell a vertical put spread since I am bullish. Well, those spreads are even more ridiculous.

I'd like to know, if any of you are in this or getting into this, what are you buying?

Jay,

"Mark" in TOS terms represents the theoretical mid-point between the bid and the ask of the option. Market makers are usually trying to get their orders filled at this number. It represents a good starting point for placing orders, unless the stock is really moving, in which case, its usually better to just go with the ask.

Jay C,

I believe that the mark is in between the bid and the ask, just the average of what the stock is going for.

Jim

When a chart is as beautiful as PCZ, do you bend your rules a little bit, and let average volume slide? C2 and Joel do, I think I will too, but just curious about this subject.

PS: I'm back on the stops. Can't seem to quit, but ever honing the craft. I'll let you know when I find the perfect formula :-D

Okay, CNX was on the watchlist. I'm thinking about playing it, but this'll be my first flag. Can someone help me calculate the target?... Pretty please?...

DG, I bought Jan 85's yesterday on EDU. I went out of the money because it pulled back 12 points and I am expecting it to at least reach those old highs again

Others on my list to buy today are: PBR, NOV,MEE, AEM, SA and off course the wonderful picks of the master OA. Thanks Jeff

Jamie

Krystal,
Measure the height of the flagpole and that should be your target.

DG, thanks.

Krystal,
My target is $63. That's probably conservative but I have giving back profit and I'd rather take what I have.

CNX should go up to a Target around $66 - $67

BOT the Dec 55's on 11/2 - Up 27% so far.

David in NH

Just bought --

RIMM Stock. Can no longer ignore the trend.
VMW went long, again can no longer avoid the trend.

Peter,
Joel and I are in fisticuffs over this one. Because I'm playing it as a trend, volume means nothing. If you're playing it as a breakout you want volume... although that being said... a breakout to the upside doesn't require the same volume that one to the downside does. Because I see it as a trend half way complete (cup is half empty) I went with a smaller position than normal. Because Joel is a "Cup half full" kind of guy, he probably went with a more standard size position.

If this doesn't make sense... join the club. So far I'm up a hundred bucks on it today. Wooo hooo!!

Jeff, would love to see something on futures! However you want to do it! Your watchlist is making me money as usual! Thanks! Helps me spot trends and entries on the stocks that I find on my own! That makes me feel good too!!
A question out there for everyone: On stocks with high priced options, should I be doing a bull put spread(vertical)? Buy the put spread? I know it has been discussed, I'm slow some times and new to advanced options.
Have a great day trading!
Scott L

CME starting to make a good move on decent volume this afternoon - nice bull flag setup. Could be 50+ Points

David in NH

Krystal,
Be careful on CNX. This is a breakout but the volume is 25% below average. I smell fakeout. If you buy now be prepared for a pull back. I'd wait for volume.

David, Laney, thanks!

Chris, I'm actually taking down some NUVA instead. Although, the volume there is not so impressive either. Jeff, can you intervene? I know volume to the upside is important. Should we be concerned about the volume on these flag breakouts if it's not as high as what we'd like to see?...

David,
I agree on the flag, although volume is only 5% above average. Also Jan calls are $40 which doesn't make a 50 pt move very attractive from a risk/reward standpoint.

So far I'm sounding like the king of negativity. Perhaps a word from the Phoenix... Master of Flag Trading would be in order.

Laney,

When it comes to flags, my volume requirement is not very strict. Flags come with the highest probability of success when it comes to patterns.

Ben,

When you have stocks like BIDU, and you missed a good entry, convert to intra day charts. Start with a 20, and look for entry points there. You'll see much beter entry points from a day trading perspective. Just make sure you plan your exits at the time of entry.

David$,

I meant to e-mail you earlier and feel like a jackass. The fish was amazing!!! Thank you so much for sending it!

Everyone else,

My comment about "arrogance" on today's post was directed solely at my attitude today. It was not pointed at anyone other than myself. My wife said I was a little "too arrogant" for her taste.

I banned her from the blog.

Jeff no worries next fish we will catch together.

You forgot to mention HRS as one of your great picks

Lis,

On MON or other high IV stocks. You can try a debit or credit spread. Personally, I prefer a debit spread because there is no margin requirement.

For a bullish stock, you will get into a bull call debit spread. You buy a call at a lower strike price and sell a call at a higher strike of the same month, usually within 20-40 days of expiration. The upside is, you make money as long as the stock closes above your higher strike at expiration. The downside is, your profit is capped.

I bought Nov bull call on MON and FSLR at their support because IV was high and I was a bit nervous on where the market is going. With FSLR's gap up today, I wish I had just suck it up with the IV and bought a straight call. I also got a credit spread on CME because buying a straight call with their high premium would have blown out my risk per trade rule.

JEFF,

Perhaps you can talk more about when and how to use spread? You mentioned on the Advanced Options open house about getting into a spread with earnings announcement. Can you elaborate on that?

Thanks so much for the watch list.

Grace

David$,
Speaking of HRS, whats your target on it?

C & C

Yes I would like to hear from the Phoenix. I BOT the Dec 660's for $31.00 on 11/2 so maybe I am in better shape than the Jan 670's you were referring.

But would like some feedback (Jimi Hendrix)

David in NH

I'm in CME already and added today.

Jeff, John Murphy says the same thing about flags having a high probability of success. He also stresses volume, though, so that's why I asked. I just took down some NUVA... congratulate me...it's my first flag play! (cue applause...)

ZUMZ

I thought it was stalling around the 37-ish area where there is some past support. Anyone else see a descending triangle on the 10 day?

Since this new website I have such a hard time keeping an eye on all these posts... Before I used RSS and it would download each message into my feed. Now it downloads the whole page each time and I have to scroll thru them. Not very convenient... anyone else has the same problem?

-steven

THE PHOENIX

CME - Did you add to some call options you already had in storage ?

David in NH

Jeff,

I love a woman who can put her man back a step. GO AMBER. Not that I thought you were arrogant, I just like Amber's style :)
Don't ban her.....you're lucky she keeps you humble.

GME - This stock was my biggest loser of several months which I had to cut loose on Friday. It basically went nowhere for the past 4 weeks or so and after 3 weeks of sideways and a vol crush last week, I was down more than I had anticipated I would be so I closed the trade. They were Nov calls anyway. So now I'd love to get back in but would hate to throw more money at this stock if it doesn't do something soon.

This is where a good trading shrink would come in handy.

Heads up. APPL is trying to sustain a break above $190.

DG,

GME needs to breakout out of this consolidation. A strong close above 60-60.50 could single a continuation to the upside. Otherwise, there is no telling how long it could stay in this sideways action.
Just me .02.