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Blog Archive

Sunday, July 23, 2006

DISH and BAX - The breakout strategy

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How to view the entire chart:


1. Try clicking on the name of the most recent article in the column on the right. This will remove the "Archives" list.
2. Try right click on the chart itself and open it on a separate window.


I am sorry that I cannot always make the chart small enough to fit neatly on the left column. I want you to be able to see the details I want to point out.


I Hope this helps,


Juan

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The versatility of the PCCRC allows us to trade Vega and Theta for gains but also we can take advantage of strong breakout moves while being fully hedged.

I have entered 2 trades in my Shared Folder on stocks that recently broke out to new highs in spite fo the negative mood of the market. I have analysed these stocks using the RET software and they show potential for strong movement up. WIth the negative sentiment in the market, it is nto a bad idea to pay for some down side protection. Take a look at my analysis by visiting my SOTD site:

http://www.pathometrix.com/SOTD.html, or just click on the top link in the column to the right here.
For instructions in accessing my Shared Folder, click on the second link in the column to the right here.

For those of you who do not have Platinum, here are the suggested trades:






Here is the OX confirmation on my BAX trade. As you can see in here, I tried in vain to get a better price than the market. I think that the bid/asks were quite tight anyway. Although I am not sure why.



I am taking my time with the DISH trade, because I think that the IV is too high right now. In the days ahead, as the stock moves sideways, I might get a better price.

2 comments:

Anonymous said...

Juan,

Is DISH's IV a little bit of a concern? Although it is below 40, it is quite high relative to it's past IV. I guess with this trade you're looking to gain from Delta more so than Vega.

Thanks Juan.

Juan Sarmiento said...

Bryan, this is another modality of the trade. The idea is to make Delta profits. Today the IV was on the increase, but if the stock begins to go sideways, IV will decline and I can find a better entry point.

Note that that the Elliott wave is quite bullish.

I did enter the BAX today.

EWI