$38.71, the option premium has increased to $7.90 giving me a profit
of $1.90, a 32% returns.
Looking at the chart the MACD histogram is now at negative territory
indicating a possible longer term bearish trend but William %R is at
the bottom signaling me to get out.
I took my profit when the market opens the next day and move on to
the next trade, remember always take your profit, don’t be greedy.
Move on.
Case Study #4 Agnico-Eagle Mines Limited
AEM was spotted a “Shooting Star” bearish reversal candlestick
formation yesterday on 19 Mar 08 before market opens which is due
for a market correction as is was trending for some time. It was
supported be a strong negative divergence present in the stock chart.
AEM was trading at $74.10 and the low was at $73.50 and the trading
plan for AEM entry was set up using a conditional order.
If stock price < $73.40, buy May 08 $75.00 Puts
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