We see this pullback as a good short-term trade opportunity. That said, the options on this name are both not very liquid and most have open interest levels below 100. We tend to avoid options where there are wide bid/ask spreads (even when we can get the option in the midpoint) and when open interest for any strike price is below 100 contracts. This is one to watch.
Comment:
We obviously pulled the trigger too early, but the pattern set-up right now is even better with a 9 count. Looking for the first day when the close is above the open...to enter that day before the close.
Comment:
On a higher close Friday, this pattern (and August 29th entry) will complete and an exit is warranted. Should it not close higher, the pattern is likely to continue to unfold.
Comment:
Pattern exit on Friday was at +-$292.11. The 9 count bar, from which a nice pattern did set up and evolve. closed earlier at $281.36. Our official pattern buy alert was seen on August 29th, on a close above the open day, with that bar closing at around $281.60. This would have been a great option trade (10 points) had there been enough liquidity and volume, which was not present unfortunately. Again, posted here for educational purposes only as one to watch.