Actionable Trade-Alert
from Rick in the Trading Room
(Please check all related discussion in the room before you do any trades.)
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10:54 |
Well my AMD long targeting 587.53 has suffered. Thanks for posting the SPCX chart yesterday Rick. I had a v busy day with work and didn’t really have time to interact. Are you still expecting crude to rise it now having retreated below the 79.37 pivot on the tout? Thanks. |
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10:57 |
AMD. I’m holding deep, deep in the money put credit spreads for 10/16 expiration on that pig |
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11:00 |
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11:41 |
AMD -420, MU – 780 sometime soon?? |
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11:48 |
Blackfish: The 587.53 target in AMD is still valid in theory and will remain so until such time as the stock falls below C=498.15. In practice, however, any long positions should have been exited yesterday no lower than 567.53. That implies the use of a ‘dynamic’ trailing stop, a simple technique that I advise for ALL trades, ALL the time. Very simply stated, when AMD topped yesterday at 574.20, it was $13.33 from the target. Logically, you should never risk more on a trailing stop than half of what you stand to make if the symbol reaches the target. This means your ‘shrinking’ trailing stop at 574.20 should have been $6.67. Even if you are willing to accept 1:1 risk/reward to milk the last ounce of potential gains, the stop should have been no lower than 560.87. This is the easiest and most practical risk management tool that I have to offer. Everyone who reads this should take the time to figure it out, and to implement ‘dynamic’ trailing stops at all times. |