Dave, Herm,
I usually go to the logical extreme of CCing one month out. If the stock happens to move fast, you can move with it. Which brings me to an EDFY update . . .
I rolled up my May 7.5s to May 10s, capturing a nice little chunk of time premium. Edify is now at 12, and it looks like it might go a little further before consolidating. This has boosted the projected return to 13% in four weeks from 10%. With Edify very likely to hit 12.5 Monday, I am looking to roll up one more time!
I hope to be as nimble on the way down :~}
With regard to CCing on short time horizons . . .
A while ago, Herm posted a chart that for EDFY would look like this:
iqc.com
My time horizon is now two weeks. I decided that using data on a shorter time scale to match my shorter horizon might offer some insight into the next few days:
iqc.com
Very different, eh!? I read continued short term strength TA wise. FA? Rumors of takeover starting to circulate. This thing should be wild for a while, but so far seems ridable.
Anyhow, I wondered what the real TA mavens thought about this TA approach, particularly the daytrading types out there. David and Dan come to mind. But Herm, I'd like your opinion, too. My approach is CCing one month out, rolling up and down, as opposed to several months out and sideshows. What sort of WINS TA do y'all think best suits this approach?
Good Trading, Tuck |
