Let’s go over what I’m looking at this morning for our possible trades. Today, I’m looking at AAPL, Facebook, KNDI, and DGLY. I made a public announcement today about the rules of trading, position sizing, risk management. Here [01:41], let me just show you. I bought AMC, EXPR, and BlackBerry, or BB, on Monday. Wish I would have bought Friday.
Let’s look at AMC. I think it’s up 200-something percent, almost $20. Pretty remarkable stuff here. I was in too big of a position. You can’t even see. When was Monday? I bought Monday and sold Tuesday. This is Wednesday. I was in too big of a position. I knew it was going to do something like this, but I was in too big of a position based on my account. I became emotional. I sold for a loss, I think about 50% loss somewhere around midday Tuesday. I lost patience.
Trading is a lot like poker. You have to stay calm, cool, collected. Believe in your trade. Don’t be afraid to lose. That’s why I say adequate position sizing really helps with sticking to your trade plan, trade idea. Twenty dollars, I’ve got to say it hurts. It’s really hard to say how much I’d be up. Nothing you can do. Learn your lesson, move on. Opportunities like this do come. I don’t know how often in a year, but they do come. We tend to find them, so lesson learned.
Going into the charts, I like AAPL for the earnings after the bell today. I’m going to get the 160-strike price. Facebook, I like that we’ve got a little bit of a dip buy opportunity here. There’s a Fed meeting today around 11 am Eastern Standard Time.
You can see we had this nice gap up sideways pretty much. This [04:43] is support, you could say, for AAPL. I’ll be looking at this area. I’ll be also looking for a good entry with a 160-strike price. That’s pretty much it. That’s the trade idea. That’s the trade plan. That’s my idea.
I’m going to risk the adequate amount in this trade because there’s no guarantees that this is going to work, or not going to work, how much of a payout it’s going to be, or how little of a payout it’s going to be. The name of the game is to keep trading, stay consistently profitable, stay consistent with your position sizing, and trade your ideas. Trade your trade idea.
That’s AAPL, Facebook. Facebook is maybe a little bit lesser of a conviction trade, but I also do like it. I think Facebook could have really good blow out earnings. I’ll take this [06:06] dip and no problems, no worries. This [06:22] is a historic level of support coming really close to it. This will be a good area for entry around this 278.33, about 608,000 shares pre-market being traded.
Go back to AAPL. AAPL’s a leader for those who don’t know. AAPL is a leader, so it’s always important to keep an eye on AAPL. AAPL and SPY are the two I really keep an eye on, most to give me an idea of market sentiment.
DGLY, I like this trade because we’re getting a nice pull back, this gap. Did the gap window fill? Yes, it did. I’m looking at getting the $4.50 strike price. These have monthly expirations. Then KNDI is also a potential sympathy play with a lot of these heavily shorted float stocks. I like the 13-strike price for February 21st. Those are my top four plays for the day.
I also like PLUG. Next week, February the 5th 90 calls, this could be a good entry for that trade considering if I go out a little bit on this [08:32]. This came down, and we did fill this [08:39] gap window. It could be a gap down, double bottom, then we’ve got this window to fill. Double top at the 75. I think it went higher than that. I think it went all the way to 80, almost 80. I do like next week’s 90 strike.
You can’t see the volume right now because they’re not open. I will show you some of the open interests on the PLUG next week’s 90 calls. Let me get rid of this January 29th. Let me get rid of this March. We’ll just have the February 5th.
The 90 doesn’t have as much as the 80. It really comes down to the volume for me. I like to see a lot of volume over open interest, not open interest over volume. Sometimes when you have this open interest over volume, it can be short calls. I tend to find that is more often than not the case for short calls. I’ll be keeping an eye on PLUG. I’ll be keeping an eye on OSTK. They’re not my main focus for today. That’s all I’ve got. Let’s have a good day in the market.
I’m expecting it to be a swing trade. I think I’m going to maybe sell half my position near the close, or when I’m in good profits, and then let the other half ride through earning. I think that’s always a wise thing to do.
I think that covers everything. God bless, and I’ll see you on the charts.
