Skiracer's stock slopes

[New-born baby]

Smh

I have a feeling that SMH did a double-top today with a "fake" breakout.
Seems to me like its due for a correction.

Any comments?

P.S. I am hooding June $35 puts as of todays close

Well, you'll know more tomorrow. The chart says that it needs to move higher tomorrow in order to confirm the $39 target. The chart has been real nice up to now, but look at the weak MACD. Notice the histogram shows distribution?
A warning of weakening. But the RSI still shows money flow into the SMH.
Tomorrow if she moves higher, and I think it will, then believe the chart and head to $39. A pullback tomorrow might signal a top, but I'd have to look at tomorrow's action to see.

[Runner]

Could be possible some bulls bot off the top trend line. It will need more volume on the Bulls part. Notice the double tap retest. Bulls have been keeping SHM up, at least for now!!

[jiesen]

Let me know when this one goes to a complete pile of junk. I'll jump in there with you, Jiesen!

Chart Runner posted says bottom is $17, although I think I posted about three weeks ago she's headed lower. . . .

there's no guarantee this is going to hit my buy target, but I'll definitely post it to this forum first thing, if and when it does (I have posted each of my equity trades on this forum since starting my thread, btw). I'm also waiting to see a decent ER from XING soon, which could get me some extra cash to gamble with- but this is also not guaranteed.

[Runner]

Just pulled up a weekly chart on SMH

[skiracer]

Mystiky,
It broke through short term resistance yesterday at 35.20 range and the next real resistance could be around 39/40 to 45 range. Yesterday was not a fake or failed breakout. It looks to be the real thing with a lower low at the open to reverse an close on a higher high which signals bullish action.
I think that there is some gas left in it's tank and will probably go up from here.
What puzzles me is your buying June 35 options so close to the expiration date. Just not enough time in my book for that play. If you're betting it goes down why not take a short position? Especially if it's the short term that you're looking at. You probably will get some pullback or consolidation of it's recent gains, because that's natural after a longer period of gains like it has, but I would have gone the short side play in that case. Hope it works out for you but with the June 35 option play it is going to have to go down from here to realize a decent gain on the options before expiration. With the options time is also your worst enemy.

[mystiky]

Sold my $35 put

Skiracer and others....

Thanks for the charts and opinions....

I dumped those June $35 puts today at .50 cents

Made .15 on each one..... not a big deal, but I agree that SMH looks to be in an uptrend but I felt that INTC numbers would create some profit taking.

[skiracer]

Mystiky,
What bothers me the most is that you politely ask for comment and you get it from sincere but like yourself people who only know their own opinions. Then you react to how you feel + their thoughts and sometimes it changes the outcome of what your initial game plan was. Always seek others opinions but remain true to your own first.
Hope what I posted was not to authoritative or swayed you from what your original intentions were.

[New-born baby]

Profit taking

Mystiky,
What bothers me the most is that you politely ask for comment and you get it from sincere but like yourself people who only know their own opinions. Then you react to how you feel + their thoughts and sometimes it changes the outcome of what your initial game plan was. Always seek others opinions but remain true to your own first.
Hope what I posted was not to authoritative or swayed you from what your original intentions were.

SMH was down some .80 today--pretty big profit taking. Now these puts, what are they worth now? Were they naked puts? That is, did you sell the put, hoping you wouldn't have to buy SMH? If the price had gone up, they would have been worthless, correct?

[skiracer]

New-Born,
I would think the puts would increase in value if SMH were down .80 today. Options are funny and sometimes don't act as you think they would because of the time element of that particular instrument. I'm sure Mystiky would have increased his gain if he had held on longer into the day.
I was just hoping that I didn't help to sway him into unloading.

[jiesen]

SMH was down some .80 today--pretty big profit taking. Now these puts, what are they worth now? Were they naked puts? That is, did you sell the put, hoping you wouldn't have to buy SMH? If the price had gone up, they would have been worthless, correct?

I think you misunderstood, NBB. He sold the put to close out his position (he had bought a put previously). Buying a put and selling it is a very reasonable way to capitalize on a stock you think is going down, since liabilty is capped, whereas shorting it leaves you exposed to possibly unlimited losses (or naked). But even opening a position by selling a put wouldn't really be considered naked, imo, since the potential liability there (although it may be large) is still capped at the price where you'd be stuck buying the stock.

Yeah, he could have made money hanging onto that SMH put, but sometimes a bird in the hand is better than two in the bush- it could easily have gone the other way. I wish I had cashed in with my CME 230 call when it went from $1 to $5 in a week. I got greedy and it expired worthless. Next time I have a 400% profit in my hand, I'm going to take the money and run.

[skiracer]

At least half.

[jiesen]

At least half.

well, you can't sell half when you only buy one contract... but yeah, selling half can usually work, too.

[mystiky]

true

My original message

I have a feeling that SMH did a double-top today with a "fake" breakout.
Seems to me like its due for a correction.

Any comments?

P.S. I am hooding June $35 puts as of todays close

your reply

Mystiky,
What bothers me the most is that you politely ask for comment and you get it from sincere but like yourself people who only know their own opinions. Then you react to how you feel + their thoughts and sometimes it changes the outcome of what your initial game plan was. Always seek others opinions but remain true to your own first.
Hope what I posted was not to authoritative or swayed you from what your original intentions were.

What exactly are you accusing me of? I clearely stated that I thought that SMH was overdone and that the INTC would not be as good as many thought. I then posted the fact I was holding the puts and asked for some of you that know charts much better than I ever will for some opinions.

How did I mis-represent anything? After I was out of the trade, I clearely stated when and at what price.

Just puzzled why you wrote such a comment. By the way, I am very thankful that there is a free forum for people to help folks out like I, so in no way am I looking for "rub it in" or "prove that you guys were wrong" or etc...

Have a great weekend everyone!

[mystiky]

my puts were

SMH was down some .80 today--pretty big profit taking. Now these puts, what are they worth now? Were they naked puts? That is, did you sell the put, hoping you wouldn't have to buy SMH? If the price had gone up, they would have been worthless, correct?

Actually, I just bought those June $35 puts and had no underlying securities or anything. Of course I sold them at .55 and now I see it at .75.

So basically I could have even doubled more my profit if I was a little more patient!

[skiracer]

Mystiky,
Please don't take my post the wrong way. I was just saying that I hoped my thoughts on the matter didn't sway you from holding onto the options. In no way was I accusing you in any way of anything. I was hoping our opinions, mine in particular, didn't cause you any harm. That's all but now that I went back and read my post I could see how someone could interpret it the other way. I'm sorry about that.