I sold 10 put contracts at the $50 strike for Jun 09 expiry @0.28 and 10 put contracts at $49 for Jun 09 expiry @$0.21. Looking at the 20 day chart 2 hour periods: It crossed its 50 day moving average with a significant up move. It really hasn't looked back since besides normal retracements for each move higher. What was really crucial is when it came down with light volume and bounced off of the 50 day moving average to continue higher. See the chart below:
There are only 11 days until expiration and I fill comfortable with this position. I will re-evaluate if FCX breaches its 50 day moving average.
Copper and gold play still looks hot. I remember owning this stock around $17 and selling around $27...
ReplyDeleteI remember when I was play this at levels 2x where it is now.
ReplyDeleteFor not being a technician, I sure do look at the charts a lot.
ReplyDeleteFCX gaping up to $60.75 on the open. This stock was on a lot of peoples radars and looks like it is back in play. Looks like there isn't any resistance to the upside until $62 ish and then $64.
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