$Alibaba (BABA.US)$ I have entered into baba. I bought calls...
$Alibaba(BABA.US$ I have entered into baba. I bought calls at 145 strike. Expiry 22nd Jan 2022. Based on bollinger band, its out of 2SD and RSI indicator is 28. Very oversold. Lastly, divergence of stock price and volume. This are 3 reasons that made me enter despite it broke a new low today. I believe it will have at least a technical rebound to retest 20SMA as resistance. If it doesn't break, I'll sell at a small profit. If it breaks 20SMA, I'll hold to 178 resistance.
Let's see if we will get a technical rebound soon or even a rebound from here.
As always, trade safe & invest wise!
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John Lin888 : Please tell me, how should I postpone this week's call that I bought last week until next year?
vvvvvv8888 John Lin888 :
Who taught you how to buy a call
John Lin888 : I had no brain and bought it because the last time I bought it at 144, it sold over 16
Investing 101 OP John Lin888 : You cannot roll a buy option. You can only cut loss and buy another at a further out expiry.
John Lin888 : OK thank you, I've dropped it almost
Investing 101 OP John Lin888 : You can only roll out sell options. But if they are vertical spreads, they cannot be fully in the money. Otherwise there is no way to roll out of it without taking a small loss.
MarchOn : Do you intend to buy Baba at $145 comes Jan expiration? Trying to understand the game plan for the buy call option. Thanks!
Investing 101 OP MarchOn : Nope. I do a naked buy option only for the short term. Profit. As I did say, this call is to catch the technical rebound. I will exit once I feel the rebound is over.
70126348 : etc.20