Comments on: The Return Of The Bear – Citigroup Down http://streetsmartoptions.com/the-return-of-the-bear-%e2%80%93-citigroup-down/ Trading for profits not for excitement. Be better traders not gamblers. Be smart and not to be misled. Thu, 08 Jan 2009 16:01:54 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Ronald Lee http://streetsmartoptions.com/the-return-of-the-bear-%e2%80%93-citigroup-down/comment-page-1/#comment-404 Ronald Lee Mon, 28 Jul 2008 03:55:45 +0000 http://streetsmartoptions.com/?p=289#comment-404 I have been tracking and playing some financial stock (JPM, GS, BAC, C, AIG) for some time, due to the negativeness, there has been quite a bit of bearish reversal. 1. You must be able to recognized the common bearish reversal candlestick formation, then the second day is the entry should it fall below the low of the first day candlestick. 2. Conditional order are used to removed the trading emotions and let you to be detached away from the computer. 3. Stop loss are set $0.10 above the high of the first candlestick using conditional order. 4. A trialling stop is used to collect your profits. The reason I choose Sept and not Aug options is very simple, time decay is the fastest in the current month expiration options unless it is a vertical spread, then I'll choose the current month. I have been tracking and playing some financial stock (JPM, GS, BAC, C, AIG) for some time, due to the negativeness, there has been quite a bit of bearish reversal.
1. You must be able to recognized the common bearish reversal candlestick formation, then the second day is the entry should it fall below the low of the first day candlestick.
2. Conditional order are used to removed the trading emotions and let you to be detached away from the computer.
3. Stop loss are set $0.10 above the high of the first candlestick using conditional order.
4. A trialling stop is used to collect your profits.
The reason I choose Sept and not Aug options is very simple, time decay is the fastest in the current month expiration options unless it is a vertical spread, then I’ll choose the current month.

]]> By: divulge http://streetsmartoptions.com/the-return-of-the-bear-%e2%80%93-citigroup-down/comment-page-1/#comment-403 divulge Mon, 28 Jul 2008 02:41:10 +0000 http://streetsmartoptions.com/?p=289#comment-403 ya , financial sectors' black cloud seems hasn't gone away ! Investors eventually still need to wake up and face the reality that most of the financial stocks are in serious red , after days of "recovering" / technical rebound , the buy low sell high players may choose to sell portion of the shares , and this could be the reason that the financial stocks will be hit again ! You seem choose the right time to "PUT" 'em ( C ) down when CITI turns weak , I'm really impressed and would like to learn how you managed to "spot" this stock and , why you buy the September option instead of August since you expect the underlying would "return of the bear" possibility ? Why not buying the Aug's put option at the same strike price ? Due to the Greeks ? Can you share with me that how you set the exit target (profit) as well as stop loss ? thanks ! ya , financial sectors’ black cloud seems hasn’t gone away ! Investors eventually still need to wake up and face the reality that most of the financial stocks are in serious red , after days of “recovering” / technical rebound , the buy low sell high players may choose to sell portion of the shares , and this could be the reason that the financial stocks will be hit again !

You seem choose the right time to “PUT” ‘em ( C ) down when CITI turns weak , I’m really impressed and would like to learn how you managed to “spot” this stock and , why you buy the September option instead of August since you expect the underlying would “return of the bear” possibility ? Why not buying the Aug’s put option at the same strike price ? Due to the Greeks ?

Can you share with me that how you set the exit target (profit) as well as stop loss ?

thanks !

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