Futures are looking a bit lower this morning. Sometime last night futures spiked down about 20-30 points for some reason. My guess is the Asian markets had opened up and were hedging against potential downside this morning but it’s anyone’s guess.
Visa’s looking weak this morning with pre-market action taking it below $82. I will most likely take a nibble at $81 which appears to be a good support base with two failed breakdown attempts over the past week at that level. If $81 does break down, $77 appears to be the next logical support base. I still don’t think well see Visa under $80, but one never knows.
Option Addict has released his latest watchlist this morning. If you’re in need of ideas, just starting out, or need to see how JK works, head on over and check it out.
No action taken on Visa so far with today’s selloff. The strength of the selloff actually concerns me so as a result I have yet to take any positions on it. Here’s what I have for Visa right now. Be back after lunch!
Over the past few months, I’ve seen my portfolio whittle away to almost nothing. Granted, I started with practically nothing (in the market’s view) but still. After trading for nearly a year, I still have quite a bit to learn. However, some folks at thinkorswim have given me a task in order to refine my trading skills. In short, in order to be a great trader, it pays to be a specialist. That is, if you want to become an options trader, trade only options and nothing else. Futures trader? Same thing.
There’s a twist to the homework assignment. Now that you’re focused on being specialized in a vehicle, take that one step further and specialize in a single underlying and just that single underlying. Learn how it moves, how it trades, what items affect it. Learn it for an entire year. While that seems somewhat excessive, it does appear to be a good exercise in focus and trading refinement. That’s why I’ve decided with the transparency of my trades, Visa will now be my project. That’s right. Visa will now be my bitch.
I will try my hardest to trade Visa exclusively. There will be times I will deviate, if only because some setups out there are so blatantly obvious or the Option Addict is on a tear (when is he never?). So starting tomorrow, here’s the game plan for Visa now that I’ve sold what May calls I had left on it.
There’s the short term game plan for Visa. I’m waiting for a short term pullback near the $83 region. With the recent $15 run-up in 48 hours, I’m expecting some sort of a breather. The other alternative is to buy on a breakout of $87.50, or today’s 52-week high and maintain a tight stop. With May options coming close to expiration, I will most likely be looking at June calls, somewhere in the 90/95 area. I don’t forsee Visa heading below $80 any time soon to be quite honest.
Let’s see how the game plan works tomorrow. Good night!
