SWN Call & Put Options – Up 200%, Market is taking profits (entire market up around 20% from Sept-Nov 2010)
I just recently sold my SWN Calls up 200% during this weeks move at my GTC target price. The trend continued up so two days later I repurchased SWN call options but within the first 7 market hours (within 2 days) the stock wasn’t moving and my instincts told me to sell for a small loss because the stock dropped a small bit. The charts were still trending up, but starting to look like the stock was getting sleepy and tired up 20% within 2 weeks (after earnings move). I sold my options. Today the stock is down 2%. So I was smart to sell it quickly. The news was becoming more negative with the G20 meeting and China currency deal. The entire market is moving down now and I repurchased SWN put options and plan to sell out Monday if the negative news continues and just ride the short trend. I plan if the market continues to move up this profit taking will be just 2-3 days. If I’m wrong then I’ll sell out Monday anyway. I figure since SWN was getting lots of “clouded doji stars” and spintops at the top it is probably a good indication that the stock traders and institutions are starting to sell some of the profit off and changing their minds if they have a big position. The technicals basically meant (if true) that a lot of resistance was at the $39 stock price level currently. I’m not saying the stock won’t go higher, but right now it should come back below $37 before moving higher. The stock was sitting at around $33 for a while therefor at $39 is up 20% rather quickly. I think it will move under $37 Monday through Tuesday if the entire market continues to downtrend until a final world wide decision is made on U.S. and China currencies.
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This entry was posted on November 12, 2010 by Paul Awol. It was filed under friday sell off on bad news, G20 negative news for U.S. and China, sell SWN and take a profit, swn, SWN november uptrend 2010, swn options and was tagged with downtrends, G20 meeting, november 2010, SWN calls, SWN Put options, US markets sell off.