I am tracking a 400-share long position with a profit-adjusted cost basis of 10.66. We may have an opportunity to add to the position via a ‘counterintuitive’ entry using the pattern shown. Place a 10.79 buy-stop limit for an additional 400 shares, but cancel the trade if HDGE has traded lower than 10.65 first. If the order fills, place a stop-loss a tick beneath the point C low. _______ UPDATE (May 25, 11:28 a.m. EDT): HDGE gapped lower on the opening, negating the trade. It is bound for a target at 10.51, where you should look for a potentially tradable bounce. _______ UPDATE (May 26, 5:42 p.m): We’re playing for all the marbles on this one, so stay put. We’re in at such a great price that even if we are dead wrong we cannot lose. If the rally that I have projected comes, I have every intention of re-entering this vehicle as the broad averages make another presumptive top. In the meantime, bid 0.50 for four June 17 puts at the $11 strike. Use 0.10 of discretion if necessary. _______ UPDATE (May 30, 2:31 p.m.): The puts opened for 0.55, but I won’t include these options in my tracking position unless I hear from at least two subscribers who bought them. [No luck. Most subscribers who attempted the trade reported getting shut out using 0.50 bids.]
