Friday, June 19, 2015
First up is AMBA. I didn't trade this one but I was tempted to sell a call spread earlier in the week when it approached then exceeded that gray line at about 120. I decided not to step in front of that freight train and the stock ran away to the upside Note however that it paused and turned back at the 423% line right at about 127.
Next up is AET. Recall I traded this one in my prior post week and sold my calls right at the red line at about 120.05. This week I noticed that the stock popped up through that old resistance level and quickly moved up to the 123 area. At that point, I figured the stock would go higher but was not exactly sure how high. So I did a conservative trade and sold the 120/122 put spread for a credit of 0.7 and got filled on a pullback. That trade went out at max profit since the stock closed just above 124.
Next up is GILD. I had a monthly 118 call expiring this Friday for which I paid about $2.20. As the stock rallied up above the 120 level, I had my limit order in and sold the contract at $2.60 since I noticed there was a grey voodoo line right at the 120.50 level. The stock traded well above that and up as high as $121.78. But it closed the week at $119.78 so in retrospect, my exit at 120.60 was not so bad. That is one of the reasons I like the tool because it gives you a target and sometimes when a stock is moving in your favor, the last thing you want to do is take profits but that's exactly what you should be doing.
Last up is China Biologics symbol CBPO. I didn't trade this one either this past week, but recall that I took profits when the stock got deflected at the 423% line after making an unexpected rip to the upside. The stock traded down as low as $100 before finding support more or less at the tree line at $99.04. Then the stock made a decent recovery and then traded all the way back up and was turned back once again very close to the 423% line at 120.37. The high for the day was 120.39 just 2 cents from the Fibline. I don't know about you, but I consider that to be pretty amazing considering thee levels were known ahead of time.
In summary - and I know I have said this before - I think Fiblines are the most amazing discovery in my 30+ years trading the markets. What's also amazing is that others charge $1000 plus $50 a month for this indicator, yet I give it away completely for free.
To get your hands on the free Fib Lines indicator for Thinkorswim, send an e-mail to:
Enjoy your weekend.
Posted by C. Smith at 1:32 PM
Friday, June 5, 2015
Things are starting to click for your humble blog author. Twice this past week I had profitable option trades where I exited at Fib levels I knew ahead of time. One of them was Aetna (AET) which you can see of the chart on the left. I bought on the breakout of the prior high at about 116 and sold just 3 days later when the stock was 120.5. And just like magic the stock pulled back.
The other was was GILD which didn't pull back with quite the same predictability, but it didn't matter. I took profits and moved on.
First up are the Select Sector SPDR's shown in the graphic here. Overall I'm not a fan of these tradables but I do use them for exposure to sectors I don't have at lot of familiarity with, for example XLE for Energy and XLB for materials. I avoid it for sectors I have a handle on such as technology. This graphic shows the symbols for which I have now developed Fibline levels.
Next up is the health care sector and insurers. This sector has been on fire lately and includes such household names such as CVS, AET, CB, CI and HUM. I have made some money on AET, CI and another Chinese Biotech company called CBPO. In fact, I just sold CBPO this past week as it approached the 423% Voodoo level and it was my biggest winner of the year.
I also added Fibline levels for a handful other interesting symbols such as CMT, CSX, DNKN and MA. I will be sending out those updates to members of my Yahoo group shortly. If you want to get your hands on free Fib lines indicator for TOS send an e-mail to:
Enjoy the fruits of your labors and have a great weekend.
Posted by C. Smith at 2:38 PM