paul.....crumbs
oversold, but also look at ibd rating of "b" on accumulation which means there exists recently moderate to heavy buying.
many grasp the concepts and mechanics of options, but lose sight that the execution and timing of the position separates profit from loss and lessens or increases risk.
equate it to baseball, the perfect swing, looks good but the ball is a dynamic, much like the stock, that you have to catch on a sweet spot in order to drive it long and straight. all the black-scholes and options software only freeze you at a moment in time, the assumptions that the investor makes to plug into the formulae are all they truly need, along with a knowledge of overbought/oversold to max gains and limit losses.
chasing a momo as it runs is a story for another day...as in jdsu,brcm,qcom,cmgi....you can have a big pile of crumbs on sharp, momentary pullbacks!
good luck..ed |
