rrufff,
You wrote: "This is not a stock I'd even dream of shorting."
Come clean, dude. You hedged this week and made money doing it (more accurately, lost less). How much, of course, depended on how many July 40s you sold.
While I agree that MCOM has excellent long term prospects, I think you could easily repeat the process until the current long squeeze is over. Which would be when volume returns to somewhere near normal, and the stochastics and RSI turn off of bottoms near 30. A look at the chart indicates to me that we've a ways to go yet, perhaps to mid 20s (shorts looking for teens are indeed dreaming unless the market goes bear -- but this, too, is a possibility: I'm looking for a good correction myself in the next couple of months). Your own convictions are that 35 is the bottom, though. So I guess you'd wait for another spurt before doing another write, and you might be right to do so.
The above targets are, naturally, just my humble opinion. To be taken with a grain of salt since a) I'm not great at TA, and b) I have no position in MCOM and am not trading on the above beliefs.
Congratulations again on a good pick to begin with, and a good covered write this week.
As far as the board resembling a Yahoo! thread, well, any time a stock takes off or gets crushed like this, a bunch of crowing knowitalls show up and presto, Yahoos. Human Nature. I say ignore it. Who cares about their time? Think about the time you are wasting with folks whose investment perspective is too different to even allow constructive discourse. But not for more than a moment. Spend more time thinking of what you're going to do with that 1 3/4 *$100 * ? in cash you just picked up ;~}
Cheers, Tuck |
