I have been focusing on trades of about 2 to 3 weeks or a bit more in duration with options, and I have been in the process of developing a system for this type of trading. As far as the tape reading, I did not know what you were interesting in knowing other than the basic question of big block buying and selling. So I added in what details that struck me at the time worth mentioning. Besides, in learning how to tape read, I think it is at first good to pay close atttention to the details, and then learn what can be weeded out as "insignificant". That is the learning approach I have been taking.
I did find the HWP sales out of place, but considering market events at the time, I though it may lead to a significant observation, particularly if buyers did not step up. I expected that if buyers were to begin accumulating stocks again that this would happen when the market adjustment showed a bottom. But I was hoping to find early large block buying like I did on some of the other stocks. It was different with HWP to see the one sided selling during that interim period of time. This is what I did not know how to interpet at the time. Still, given the way the market was looking at the time where to me it may run through another adjustment, I thought it would be safe to hold off on a purchase on this stock.
Like I said in post #7919, "If HWP goes down, it is because funds have stepped back their purchases during this correction". So I still believed that the fund buying I saw was good evidence that the stock will continue its run up. I just do not believe in buying on weakness. I want the stock to validate support and from an adjustment I would like to to move through resistance and gauge the buying activity when that happens. I find this is very important for option trades. Still, the news from Chris that HWP respecting its support was a positive sign. So as you can tell I am biased toward stocks that have established upward price momentum: strength. I think this fits well with short term (2 to 3 week) option trades.
If you have any observations to make regarding the technical nature of stocks with respect to option trades I would be interested in hearing from you. It is not as though I have traded short term, partcularly with options, for very long. I started early last year my short term trades when time permitted. I have started my short term option trades later that year.
Your comments are always welcome and appreciated.
Bob Graham |
