Market Curiosity: Exploring Markets And Systems

January 25, 2011

Sold SJT Feb puts on triangle backtest -35%

Filed under: -25 to -49%, Short Puts — Tags: , — Jeff Fitzmyers @ 10:00 am

Sold Feb 22.5 puts for $0.25.

+ Triangle backtest.
+ Natural gas prices are rising.
+ 34 and 170 EMA’s rising and providing support.
+ Today’s drop almost closed the gap on January 11th.
+/- Daily CCI a bit high, but many times the backtest is too fast for the CCI to bottom.
+ Price seems to be bumping up to the underside of a bigger triangle.
+ Weekly CCI just crossed over the monthly CCI.
– Quite a few distribution days in the past few weeks.

Jan 25: Covered at $0.65 -35%. SJT is associated with natural gas. And since price held up ok yesterday, I did not cover the options. After all there were quite a few levels of support present. Although the lack of volume was a big caution. But I did not notice that, until today and covered asap. The move today is likely just flushing out weak longs. Or it could be some fundamental news item that could send the stock much lower. I don’t know and did not want to find out the hard way. It will be interesting to check back in a month and see what has happened with the options.

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