David, My computer has given me a buy signal, and I jumped in on
the long side just before the close yesterday, at 30 7/8.
However, I am presently getting screwed on options.
At 3:08pm yesterday, I placed a market order to buy 20
contracts of Feb 30 calls (MUBF). After my order, over
200 contracts traded at 2 1/2 and 2 7/16. The highest ask
that I saw was 2 5/8. After no confirmation by 4pm, I called
E-Trade, and bitched about it. At 8pm, I got confirmation
of a fill at 3!!! That's $1000 more than the my expected
fill of 2 1/2. This time, if it is not corrected, this is going to
my attorneys.
Attention to everyone - This is the problem of trading
options. You can get burned. I, however, never remain
quiet, and will stay on their case until this is corrected to
my satisfaction.
Now, a few pros and cons on MU, thinking out loud:
Negative
1. Earnings in downward trend, with DRAM pricing
2. Stock has a high PE based on 98 earnings
Positive
1. Fundamentals above don't count with MU
2. MU historially trades in an upward trend at this
time of year. (Expect downward correct in late March)
3. MU has been in an upward channel for 27 days since
the bottom at 22.
Patrick
PS - I want at least 33 on this up cycle this week, and
could see 35 in the coming 3 weeks. |
