US Stocks - My Stocks Investing

Green Mountain Coffee Roasters Inc. (GMCR) Trade Idea

Post author:Marubozu
Post published:August 8, 2013

Chart Pattern: GMCR is forming a Triple Tops with resistance at about $81.70.

Trading Strategy: Short Call Spread 80/82.5

STO GMCR Sept 13 80 Call
BTO GMCR Sept 13 82.5 Call
If break $81.70 resistance and move above $82.5, BTC GMCR Sept 13 80 Call to repair (1 month before expiry), else close both positions.
If break uptrend support (about $74.00), short by BTO GMCR Oct 13 72.5 Put.
If break Triple Tops Neckline at $67.35, may consider to Long another Put option to continue shorting. Price target $60.00 (Gap Support & 38.2% Fibonacci Retracement Level)

GMCR Chart

GMCR Fundamental

Chart from thinkorswim, get FREE chart here.

Original post by Marubozu from My Stocks Investing Journey.

Schlumberger Limited (SLB) Trade Idea

Post author:Marubozu
Post published:August 8, 2013

Trading Strategy: Short Call Spread 82.5/85

Direction: Bearish (Rejected at Up Trend Channel Resistance)
STO SLB Sept 13 82.5 Call
BTO SLB Sept 13 85 Call
If the up trend channel resistance (about $85) is broken, close short leg if more than 1 month before expiry, to repair the trade (but need to analyse the potential risk of incurring more losses).
Entry Price: $82.83
Breakeven Price: $83.58
Max Profit: $540
Max Loss: $710
Reward vs Risk: 0.76
Probability Price Below Breakeven: 67%

SLB Chart

Daily Chart

Weekly Chart

SLB Fundamental

Chart from thinkorswim, get FREE chart here.

Original post by Marubozu from My Stocks Investing Journey.

Broadcom (BRCM) Trade Idea

Post author:Marubozu
Post published:July 29, 2013

Technical Analysis: BRCM Gapped down after a posting 2Q loss on $501M impairment charges. Currently BRCM is just sitting on the critical support level at about $27.00 (Dec 2012 low) and also the 161.8% Fibonacci Retracement Level.

See Earning Announcement of BRCM.

Trading Plan: Wait another a few more days to see whether this support is strong and show sign of reversal pattern.

Trading Strategy: either Short Put Spread or Long Call

STO BRCM Sept 13 30 Put
BTO BRCM Sept 13 26 Put
If break support, BTC BRCM Sept 13 30 Put to repair (1 month before expiry), else close both positions.

or

BTO BRCM Sept 13 28 Call
Close position one month before expiry date to minimize Time Decay.

BRCM Chart

BRCM Fundamental