Hello again, my friends,
There are several stocks to look at for rolling possibilities. This is given here as a way to help you spot good looking charts.
Run six month charts on these (and other ticker symbols), symbols. Look for a wave pattern that rises at least 50 cents, and then goes back down the same or close to it. Now look for a pattern that goes up and down every 3 to 5 weeks. Faster is better, but the pattern is more important.
While you're there, check and see if the stock has options. There may be some covered call possibilities.
Here are the symbols, after a quick perusal of a few stock pages, plus a few from memory:
BRCD, COOL, RENN (See notes below), ZX, RF, CIS, MBI (Check it out as a covered call possibility), BORN (Another roller {?} or covered call candidate), and EK, see below.
EK (Note the Eastman Kodak is way down. It's in a lawsuit they may win. They have a Billion $$$$$$ in the bank. A few days ago the stock was at $2.40, and the Sept calls were 35 cents to sell. That would be $2,400 for 1000 shares, and then take in $350 for selling the option. You keep this no matter what happens. If you get called out {Sell} the stock you make another 10 cents, or $100. A little longer than I normally like but not bad.) Check this info for currency and accuracy.
Let's look at RENN---the supposed new FaceBook of China. The stock was $10.50 the other day. The August $10 call were $1.35. That's $10,500 to make $1,350, of which you'd have to give back $500 is you were called out. Don't forget the buyback on this trade. While looking at it's pattern, consider it as a roller and as a covered call candidate. Also, think about this one as hold, or even a straight option play. If this company comes through it could take off. It's growing rapidly (adding users), but I don't think it's profitable yet. It just went public a few months ago.
More Later,
Wade
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