Save 15% on H&R Block At Home Products Deluxe



New Trade – BUY SEP14 PUTS on TASR

Yesterday, I was thinking that if the weakness in TASR stock continues, I might be further taking advantage of it and offset losses on my put contracts.

I decided to buy a put contract against TASR. When looking at the charts it is apparent that the selling took place and will be gaining more strength in a couple of the following days (maybe for the end of this week).
 
 

TASR sell off

TASR showing its weakness. See my added comments (arrows and lines) pointing to areas where I see the weakness.

 
 
If you look at the picture, pay attention to arrows pointing to areas where I see the weakness. The stock continued in a sell off with a renewed strength, mainly the first two hours in the morning while the rest of the day it was mostly flat. Slight selling then renewed in the last two hours of today’s session.

If you look at the squeeze indicator, you can see my reversed arc drawn underneath the indicator where I expect the continuation of negative movement – sell off.

Trade Detail

BTO 1 SEP14 12 puts $1.20

I plan to hold this trade open as long as the stock continues going down and sell the put contract on the bottom of the lower arch of the indicator (which will indicate the end of a sell off.

Of course, if the stock stops falling and investors jump back in on a bandwagon, I will use a mental stop to close the trade as quickly as possible.

Have a great trading/investing day. Happy trading!
 





2 responses to “New Trade – BUY SEP14 PUTS on TASR”

  1. DivHut says:

    Thanks for sharing your recent option trade with us. I’m sure one of these days I’ll pull the trigger myself and jump into the options world.

    • Martin says:

      DivHut, thanks for stopping by and commenting. You can do it. If you are not sure and confident use paper money account and later live money.

      Thanks for stopping by!

Leave a Reply

Your email address will not be published. Required fields are marked *