http://mytradersjournal.com/stock-options/2007/11/13/dead-cat-bounce-wall-street/ Investing in Stocks Through Options Wed, 08 Oct 2008 11:20:21 +0000 http://wordpress.org/?v=2.6 http://mytradersjournal.com/stock-options/2007/11/13/dead-cat-bounce-wall-street/#comment-1876 Know your Options when Selling Options Sat, 26 Jan 2008 14:34:04 +0000 http://mytradersjournal.com/stock-options/2007/11/13/dead-cat-bounce-wall-street/#comment-1876 [...] That’s when AA extended it’s upswing.  I knew it would be short lived and waited.  On Friday, the day after I thought the rally (aka dead cat bounce) would end, AA started up again and was now over $31.00.  I gave in and sold four new Feb 32.50 naked puts (AANZ) in the money and received $747.00 after commissions.  That raised my ceiling to 32.50 where I could break even.  AA rose throughout the morning and I was psyched to have played this one relatively safely.  If it got above 33.00 I’d consider selling more puts.  [...] [...] That’s when AA extended it’s upswing.  I knew it would be short lived and waited.  On Friday, the day after I thought the rally (aka dead cat bounce) would end, AA started up again and was now over $31.00.  I gave in and sold four new Feb 32.50 naked puts (AANZ) in the money and received $747.00 after commissions.  That raised my ceiling to 32.50 where I could break even.  AA rose throughout the morning and I was psyched to have played this one relatively safely.  If it got above 33.00 I’d consider selling more puts.  [...]

]]> http://mytradersjournal.com/stock-options/2007/11/13/dead-cat-bounce-wall-street/#comment-1253 Dow Jones ($INDU) Chart - November 23, 2007 Sun, 25 Nov 2007 20:18:36 +0000 http://mytradersjournal.com/stock-options/2007/11/13/dead-cat-bounce-wall-street/#comment-1253 [...] Just a few trading days ago I wrote about the upcoming 10% correction for the DJIA.  We got that this week and then a few extra points past it to solidify the point and rebounded as I said we would.  The remaining question is if the bounce was only a dead cat bounce.  That’s the second correction we’ve had in the past few months.  That illustrates the insanity with the quick run back up the second time.  We have to wonder if this time will be calmer on the DJIA’s return to the bullish side or if we are actually headed farther to the south east area of the chart. [...] [...] Just a few trading days ago I wrote about the upcoming 10% correction for the DJIA.  We got that this week and then a few extra points past it to solidify the point and rebounded as I said we would.  The remaining question is if the bounce was only a dead cat bounce.  That’s the second correction we’ve had in the past few months.  That illustrates the insanity with the quick run back up the second time.  We have to wonder if this time will be calmer on the DJIA’s return to the bullish side or if we are actually headed farther to the south east area of the chart. [...]

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