the Christmas rally in the markets? Well the markets could continue to plummet the next couple weeks or we could see a rally continue into the next week. I very uncharacteristically bought a call on Big Lots today. Generally I'm all about buying puts reflecting my bearish sentiments, but what the heck - maybe I want to express my Christmas cheer.
Incidentally I think I read that the founders of Big Lots kept a whole lot of stock for themselves and pay themselves yery generously, so I would never buy the stock. But the chart looks good enough to invite a short term play. Yes, I'm violating my expiration month rule, another symptom of seasonal exuberance. But if the stock goes from 15 to 20 in the next week, I'll sell my call which cost $200 for $600. On the other hand, I can enter a stop loss order to sell if the stock goes below that horizontal red line at the bottom of the chart and get maybe $50 dollars back on a busted trade.
If anyone wants to get in on the options market fun, check out the linked site, Slope of Hope from Tim Knight. Oh, and I use the Incredible Chart service for $24 per month because they enable me to fool around with Fibonacci lines, and feature Twiggs money supply line which I've found to be a useful indicator. The Twiggs indictor is not saying buy this stock right now. So I guess I'm breaking a couple of rules. Let's see what happens.
PS I don't know why I'm having trouble lately getting the image below the text. Sorry
3 comments:
Hi Dad! I convinced Ross to take me to Big Lots to buy Christmas decorations this year because I remember being really impressed with selection and prices in previous years. We got some good deals but I wasn't really impressed. Their Christmas trees were ugly and more expensive then Walmart of Kmart (we went to both :) and they had replaced the cute kind of decorations and ornaments I've seen other years with fewer and junkier looking things. I also noticed when I checked out their home decor section that they've jacked up the prices on that stuff. I hate to say it but it looks like Big Lots is going down.
Sorry, didn't realize you had already bought some! I'm raining on your holiday cheer! Well, Big Lots got Ross and I to spend some money and there were lots of other people there doing the same :)
Btw,to get the image to the bottom of the page I usually go into "edit html" and then cut the code for the picture and paste it dwon at the bottom.
Love you!
Thanks Kim,
I'm sorry to hear big lots is doing badly. Thy were fun for an occasional visit.
I'll giv them one more day then get rid of it.
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