SOLD -1 C 100 NOV 08 5 CALL @3.25
Citibank
market intraday
Going long haven’t been working out for me. So I’m going to stick in a short side trade to hedge my long positions. I chose Citibank because it’s the obvious. It’s a financial, and it just reported a massive 20% cut to its workforce. While that’s good news in the long run and I typically go against the media, that strategy haven’t worked well. That’s why I’m going for the blatantly obvious this time around.
The TICK just marked a new high for the day but we’re merely testing a local resistance. The downside seems more and more possible now. That’s why I want to hedge my longs at this point.
Upside: Quadriple bottom forming. The company is accepting reality and putting in efforts to minimize future downside.
Resistance: $9.5
Downside: We are spiralling down. Continued market weakness seen in intraday data, Figure 2.
Support: $8
Bottom line: This trade is opposite of my usual strategy. Going short at a major support level is very risky. Yet, doing what i normally do hasn’t worked for the past two weeks. So I’m just going to go with the flow and try a short side position to hedge my positions. As this is a Nov call, this is a short term trade with a stop of C share price $8.40.
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