Farokh, I picked up several points on BIGE on Dec 28 by holding it through Christmas. I distinctly remembered that day it had trouble climbing past 17 1/2. Every time it ventured into the 17 - 18 area, it was met with relentless selling.
I expect tomorrow would be similar. We need to clear 18 with convincing volume for BIGE to go higher. Otherwise I would sell into the 17 1/2 area, and may yet start building up a short position from there.
Knight Securities' chart doesn't look too good. I don't see any serious support until 17.5, the former double top resistance. Jan options expires on the 15th, which is only 9 trading days away. Personally if I were to play the Jan options, I will probably do a synthetic spread as time premium seems awfully rich for options that have just 9 days to go.
Moreover, QTNMD is trading at 1 1/2. I don't have my OptionVue and other option related software on this laptop, but at a casual glance, in the money puts, such as QTNMX, trading at 2 5/8 seems a better buy. Also, there is QTNME at 4.
I will try to remember to do a more thorough analysis when I get back to my office. |
