Tuesday, February 12, 2013

Scalped A Couple Trades Today.

I knocked out a couple quick trades today.  $AKAM had spiked down on Earnings news a few days ago.  I was waiting for a bounce and the setup materialized today.  I bought at $35.77 and sold at $36.48.  It was a few hours trade.  When it works, it just works.. Lesson "Go with the Flow, Don't fight momentum"

I also tried $MLNX again.  It has lots of shorts, but after buying at $52.35, it began to drop to around  $52.00.  I didn't feel good about it and the 5-day chart looked to be down trending,  so when it spike back up, I sold at $52.48  Good thing I did sell, it ended the day at $51.88, but I still made a small profit of $45!  Lesson: When a trade doesn't work out as plan, cut your losses and try to minimize losses as much as possible.

Decided to make an option play.  Sold some 17.50 puts on $SCTY.  Its a solar play and hoping that the stock stays above $17.50 for the week.  It has broken out of a range and looks to have some solid support.  If it breaks below my strike, then I will have to buy at $17.50, but since I got .45 for the puts that would make my buy-in just 17.05.

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