Trade Update

Yesterday trade possibilities are starting to turn into reality.

The $X trade worked to near perfection.  $AGN has just breached $225 to the upside, and $EBIX is moving up over 2% after releasing tremendous news this morning.  That leaves $MOS.

Much like $X, $MOS looks to be turning the corner.  It's being stubborn and had pulled back to $23.  Could it keep falling?  Of course, there is always risk in the market.  But I do like the chart here, and I am trading for a sharp reversal.

The Weekly calls remain priced for a stock that will trade lower, or flat the next few days.

  • MOS $23 weekly calls $.24
  • MOS $23.50 weekly calls $.07
  • MOS $24 weekly calls $.02

It's impossible to know the exact timing of the reversal, if it happens at all.  $X was sitting in negative territory yesterday with a similar chart pattern.  It turned around sharply and rallied $2 off the lows.

$.29 calls went to $1.80 in less than a full trading day.  I don't think we will see the same explosive move, but I do think the chart is turning and the options offer a respectable risk/reward for a potential move higher.

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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