Micron Only Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum

MU 286.68

+3.8%

Dec 24 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Stephen M. DeMoss who wrote (28616)	2/18/1998 6:28:00 PM
From: DavidG	Read Replies (2) of 53903

Stephen, Congradulations on your sale of MUPF at a profit. But promise you will come on after Mu announces their stellar earnings. I will probably have no positions at close of earnings date. I didn't the last time. I found out a long time ago it is just a crap shoot and I would rather put my money in at a time when the odds are in my favor to come out with a profit. I only go long when MU is at the bottom of a trading range, a support level that I have found to be somewhat reliable, and sell longs to buy PUTs when it reaches what I believe is a resistance level. If you recall When MU broke 35 3/8 I bought MUPGs and indicated MU would again test 33 5/8. It did and I sold PUTs and went long. Today I sold longs and bought MUPGs. I will continue in this mode until Support or resistance is broken. The longer it stays in a range the more money one makes. If It ever breaks through 35 3/8, which is now a resistance level, I will go long and depending on the momentum decide whether to sell PUTs, since they are not easy to sell on fast moves. I would expect MU to then go back up and retest 39. The actual trading range of MU is 33 to 39 right now with very short term trading ranges embedded in it for the day traders.(Too complicated to explain). It probably sounds very complicated but actually it works very well..I believe one good reason is b/c MU is traded by many and they seem to be following this procedure. Where we will be by earnings date I am not sure but it really has little effect on the way I trade...since I have support and resistance levels marked from 22 to 60. I do believe, though, that MU has an upward bias b/c of changing fundmentals and how well the stock recovers on dips. The reason why I do not like out-of-money PUTs for MU is b/c you do not get much movement in the PUTs vs movement in stock, they bleed with time, and they have a very high probability of expiring worthless. MU PUTs are mostly used for insurance on Long positions on MU stock(and only MU stock). Good Luck Trading DavidG

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next