I still think its making a run to $35.20 or so before a substantial pullback, or anything close to a lower low, but I opened a position in May $31 calls at 55 cents each down below $30 two weeks ago, and after selling half at $1.05 a mere 2 days later, I sold the remaining half between $2.50 and $2.55 late today. To reiterate, it probably goes higher, but its silly to stay in a trade thats run about 400% above your entry price into earnings, just to try and catch more upside in a stock thats run 14% from its 52 week low in 2 weeks. Plus, earnings aside, GM tapped against the upper bol band today, and for me, thats a strong potential reversal signal. Finally my trade was using options obviously and the implied vol will certainly come out of the options after the open tomorrow, and simply reduces the risk/reward for staying long an options position regardless of the direction the stock moves from here forward. The lower bol band was around $29.50 when I got long just above that price, and the upper bol band was about $33 that same day, and I got a chance to close the long above that price today. So basically I caught a move from lower bol band to upper bol band in 2 weeks.
Good trading to all.
Completely sold GM long position about 30 minutes ago @ $33.20 area
Started by
Jhoe
, May 04 2011 03:18 PM
1 reply to this topic