All day today, the stocks didnt move much in any direction as the consolidation still goes on. Its a good idea to wait out the consolidation period as it can be very frustrating to hold on to positions at this time.
I came into the day with AAPL 505 put and 540 call with AAPL closing yesterday at 523.9. Today it opened right at resistance at 532 area and tested 521 support area once again. Right now, I need a big move in either direction to profit from this strangle. My bet is on the upside if AAPL is able to break the 532 area.
I entered PCLN 670 weekly call when the stock crossed 660.5 alert. However, the stock didn’t do anything all day as it was rangebound between 656 and 660 area. If the market is able to rally any day then, I am looking for this to test atleast 670 area.
One more position I entered was LNKD 110 call when the price was at 110 support area. It immediately bounce off that support level.
Things I learned from today
- Usually the attempt at first breakout fails. Good breakouts usually happen on third or fourth attempt.
- Support and resistance levels play out more often than not.
- If you are patient and wait for a good entry, you will more often than not get one.