One or our friends "huat" has send me an Advanced Get chart on MRVL. In this clip I share this clip with you and compare it with my analysis using RET, then I describe my current position on MRVL: a PCCRC.
Copy this URL and paste it into the address field of your browser.
http://www.pathometrix.com/Movies/MRVL.mov
This is s quicktime movie, so if you don't have quicktime you will have to downloaded from Apple.com. If you have an iPod, you probably have quicktime already. if not, here is where you can get it:
http://www.apple.com/quicktime/mac.html
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3 comments:
Nice blog, Juan Sarmiento. There's an interesting site about day trade future at day trade future.
Juan,
AMLN's IV is near two years low. It may break out of its 52weeks high anytime. It looks to me like a good candidate for a PCCRC. However, its IV/SV is above 2.
According to your rule, you would wait till the IV/SV falls below one before entering a trade. How important is this requirement here. It appears to me that there is little risk of a volatility crush if entered at this time. I may have missed something. Would you pls. care to explain.
HK
AMLN is NOT a good candidate by my system. I know that it is tempting to enter a PCCRC on it instead of a CRC because you feel somewhat protected by the PCCRC, should the stock go down.
The reality is different. The IV is actually in the $40's. Eventhough historically IV is low, it can go lower, thus you would have to rely on Delta to make you money. IV?SV is still high. You'd need to wait until it falls below 1 and the begins to rise. If you follow this guidelines you will avoid surprises.
I suggest that you enter a CRC is AMLN breaks to new highs.
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