Reasons for buying this Call are coming earnings on May 8th , tight trading range, good technical base, stock is oversold, gap around $30, possible recent buyback which could affect earnings on plus.
Cons: overall market looks bearish, current Covid 19 lock down will affect rest of the year with shrinking revenues and earnings in multiple sectors,.... but this bearish sentiment could also mean high short interest in the market, which could prevent stocks to go south any time soon.
Neutral observations: High institutional ownership at 93.4 %, Low short interest at 1.64 %
This transaction was Open on Friday 4/24/2020
Yesterday morning I added 2 more contracts at $1.09 and $1.15 and today AIG started to move in right direction , at the moment is trading $25.56
ReplyDeleteWhat a rollercoaster , after gaping up at opening $25.00 it went down to 24.5ish then again up again to 25.35.... I was ready to sell at $1.45 when I noticed that DIA was up ticking, so I canceled limit $1.45 sell, because I believe there is still some life in this dead cat to bounce up to 26-27 and who knows may be over $30 where is that huge gap....and that only could mean .....zing zing to the bank with 300-400% profit .....Nice dream, ah ? :)
ReplyDeleteWhat worries me that most valuable stocks are trading on the gaps to the upside, they are going up and up but I suspect without balance, this is not even short squeeze .. That makes it very dangerous and prone to flash crash IMO.... I just don't believe in that mini bull run, then again makes you wonder what is going to happen when all those bad news will come around for second Q's
ReplyDeletesadly as of early morning May 6th, I am still stuck with those May 15th calls because of my greedy nature :) I could have sold it for 100, 150, 150 % profit, but NO I started to see pie in the sky :) 500% profit !!!! I need to develop some kind of procedure to disconnect myself from that "greedy devil" inside of me .... :)
ReplyDeleteat last I closed my long AIG call position at 0.68 ...that's was 29% loss....that happens when someone is too greedy or hesitate to pull the trigger......STILL NEED TO LEARN A LOT :(
ReplyDeleteActually, on AIG calls I made around $50 after all, because first contract I sold at $2.02 and second $0.68 for total $2.70 minus 2 contracts at for whole cost $2.24..... Could have made, but I sold one too early and other one too late......... I guess I need better timing or trade on limits without any emotions
ReplyDeleteToday on expiration day AIG closed at $27.65, for me that was a unexpected long shot....Obviously my timing was off because earnings confusion, I could have make some decent money ....Still learning
ReplyDelete