Tuesday, March 20, 2012

The $AMZN trade that wasnt 20mar

stock breaking out today, up 7+. has been in a narrow channel for over a month, when you get that sideways movement the volitility starts to drop, ie the premiums go down which means you have to be tighter on your spreads than usual. was hoping for a pullback to test bottom of channel in low 170's. this breakout today would get me looking at credit put spreads below the bottom of the channel so at least 175. but premiums are not as good as id like, would rather have gotten into the 170 level to line up with the lowfrom Jan. so like i always say in my rules that if i dont like trade within first 5seconds i pass on it (gut check). my gut overules all strategies.
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