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From my simple mind to… mine…

THOR APR 06 $25 CALL

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I went ahead and put in a $25 APR 06 CALL on THOR last week. This was WAY OTM (out of the money) for me, but it was cheap (.60 cents). My bet paid off. The picture shows what I was looking at…

1) A nicely uptrending stock

2) A pennant was forming

3) The 5 day moving average crossed the 20 day MA, showing good momentum. (Not shown.)

5) MACD and stochastics were turning up.

Volume today has been great today.

The stock broke to the upside for a nearly $3 pop, translating into over a 100% profit for the CALL.

No indications yet as to a selling point. I’ll wait for a Moving Average crossover and for the MACD and stochastics to turn over (simple).

Of course, as usual, bad news overrules all other indicators. 🙂

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Written by Nelson

January 3, 2006 at 9:30 pm

Posted in Uncategorized

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