No, we are not going to write about Yogi Berra or the Yankees, as much as we would like to.
What we are going to write about is the inherent behavior for scenarios to repeat themselves. Whether it be the market, or everyday situations. History is a great indicator of future performance and trends. Identifying these trends and patterns in individual stocks, will give you an idea when to be a buyer of calls or puts in a stock.
We have brought up SINA(SINA.COM) on many occasions. We actually brought it up on our watchlist yesterday and today, knowing the bottom is close, and the move up from this next bottom will be violent.
SINA didn't go the right way yesterday. When she goes it will be fast. May watch open for possible grab of 70/72.50 calls.
Sina fell at the open to $64.21, only to rally just as hard to $70.75 late afternoon. An option traders wet dream. Wondering why it's moving will only cost you. Knowing this stock is good for a 15-20% move off it's bottom is enough reason to be a player in the calls, which we were. We fully expect SINA(SINA.COM) to continue a furious rally to $75-$80+ by friday.
The trend is your friend. The chart:
I have a weekly bull put spread on this already so I might jump into April 72.50’s in the am…depends on how it is acting..or might add to my bull put for the April…we shall see
Took her down to $64 today, now ready to ride her back over $85 IMHO