Thursday, June 25, 2009

Quick Thoughts on RIMM

It looks like the 200 day EMA (Exponential Moving Average) is showing strong signs of support.

Also, as the stock price has dropped so to has the volume, this is a very good sign that the momentum is shifting, or at least the selling is slowing down. Couple this with the MACD and the MFI both showing an up turn in the stock.

I want to take advantage of the potential move back up but I am not 100% in the bullish (short term, YET.) So, I have legged into a September Long Call position, wanting to have a total of 10 contract I have open just 5 for now.
What I am going to be doing is setting up another calendar type trade...but adding all my positions at different times when I see certain indicators and pricing triggers.

For more Information contact me directly at...

Wednesday, June 24, 2009

RIMM In China?

China Telecom May Bring Blackberry to China

How to play this type of information? I have always been taught that you "BUY the Rumor and SELL the News"

There are many ways to play this, it really depends on a few key factors...
  • Capital. Portfolio Size. How much trading capital do you have.
  • Risk Tolerance. How much $$$ are you willing to risk.
  • Involvement. How attentive/active do you want to be, can you be.
  • Education. How comfortable/educated are you with your trading methodology.
We are all in different situations, financially, physically, etc. I always like to plan according to my situation and then follow through. Advice and help from others is great, but like my Father told me back when he was at the peak of his financial career, "Son, nobody cares about your money more than you do..."

So with these recent "rumors" on RIMM I will be analyzing some possibilities as it fits my situation and sharing that with you. Who knows it may help you in your situation...

Stay Tuned...

For more direct One on One support contact me anytime via email:

Tuesday, June 23, 2009

WMT Call Calendar Cont.

I am holding off from adding another short call right now...Why? Two Reasons...
  1. There is no premium for the 52.50 strike in July. With my cost basis for the current position (SEP 52.50 Long Call) at 1.40 it just doesn't make scene or cents to sell the July 52.50 short call if all I can get is 0.08 cents with 24 days till expiration.
  2. This has to do with the chart...particularly the trading volume. Since the 15th the stock has been down and moving sideways, near its support at 48. Yet the volume has been lower or in other words trading action has been slowing, and money has been flowing out of the stock (see indicator MFI Money Flow Index.) You will also notice when looking at the MACD (Moving Average Convergence/Divergence,) that uses moving averages, which are lagging indicators, to include some trend-following characteristics, you notice a slight shift in the momentum.

This in no way means that WMT can not trend most certainly can. However it is giving me a heads up and telling me to wait a few days. I will have plenty of time and or premium to turn this into a September 47.5/52.5 Bear Call if support is broken.

The Bear Call is a credit spread, this adjustment should always eliminate the debit, BUT it can and most often will increases the risk profile)

Wal-Mart News at Google Finance

Thanks for reading and to all of you who have donated...Thank you so much your kindness will not be forgotten.

Questions on this trade, any other trades or trading strategies please contact me at:

Thank You and Best in Trading, Coach Nuge

P.S. RIMM is setting up for some great opportunities with this recent pullback. More to come.

Monday, June 15, 2009

WMT Adjustment

Sorry for not posting last week...I lost my focus for a short bit. look for my next post on "How to get ahead when it seem like everything is holding you back."

First things First

I am starting to think about the next month and what I will be doing for this WMT Call Calendar to be profitable...
The Short Call is going to expire worthless, unless Wal-Mart spikes up above 52.50 in the next 4-5 days...

I did notice some sell signals on Friday, and with the market moves today they are more then confirmed.

It goes without saying that buying a Long Put on Friday would have been a good move and very justified. Sometimes you just miss it, buying a put now, well...there are 3 things that I am seeing that tell me it may be to late for this protective put.
  1. The Bollinger Bands (lower band is being tested, this may be a sign of oversold conditions or just that the theory is being tested. No clear signs of oversold right now)
  2. The Money Flow Index (after a few days of money flowing out of this stock, we are starting to see some signs of that changing.)
  3. The support trend line that has been established for the last year is being tested again and there is nothing overly negative about this stock that tells me it will trend to much lower.

There are 2 things that I will be considering come next Monday...
  • If WMT comes back to the 50+ range by Friday. Adding another short call at the 52.50 strike.
  • If WMT stays in this lower range by Friday. I will consider the short call at the 50 strike. NOTE: this will change the dynamic of the trade to a Bear Call Calendar and will change the risk profile quite a bit. (The new risk will be equal to the difference in the 2 strikes PLUS the net debit.)
I wait and see...Look to Wednesday some good events will be happening that can show us some more insight.

For more information or to set up a 1 on 1 coaching session please contact me directly at

Friday, June 5, 2009

WMT up early on good news

Wal-mart is getting a nice boost today with the announcement of a $15 billion share repurchase program.

This is the the move that can potentially take me to my 30% ROI by next week. Patience will be my move for now.

Setting a limit order to exit the trade would be a good option for today if I was going to be out, away from my computer.

I rounded up to a total credit of 1.85 per share this would be a 32% return on my original debit of 1.40 per share. This will cover my commissions. Notice this is just a day order. Will want to read any news over the weekend if the order doesn't get filled.

This will also set up the potential to make this trade a very profitable situation that can be played out for the next couple of months.

Best in Trading, Coach Nuge

Interesting Artical

I read this article "From Ordering Steak and Lobster, to Serving It"and it hit me pretty close to home (not that I was ever buying $200 bottles of wine and living on steak and lobster,) however, I found a profession that I was passionate about. I was working for a company that I thought had it all together and quite frankly I loved working there. My portfolio was growing, and was ahead of the learning curve, and I was helping people learn how to invest in the stock market with out fear or greed... I was naive in thinking that I would never have to look for another job. After all I am only 33. As my Father would say, I need more life experience...We have all heard the term "it's to good to be true" well, enough said.

I like to think that in the face of the trials in our lives, we can learn, grow and teach others how to be a better human being.
The Refiners Fire is not a comfortable place, nor is it supposed to be...

After depleting most of my funds in this time of crisis and being faced with the reality of losing a comfortable lifestyle, I know that money is just a means to an end and the important thing in life is time with Family and Friends that is my "end." What is your "end?" Start setting or re-analyzing your short and long term goals. How are you progressing towards them?

Thank You to all of you that have supported me and continue to do so. I do not fear this market because I am prepared with the tools and have been taught how and when to use them. I have been blessed with passion for helping to educate others to do the same. It takes time to recover and patients to learn the most effective ways to do so.

Add another log to the fire, I can take the heat.

Stay positive, and remember if you think you have it bad there is always someone who has it worse.
Be grateful for what you have, and one more thing...
...did you want the Surf and Turf or the Chef's Special? ha ha ha

Contact me if you ever have any questions or would like to set up a One on One.

Demand Talib Kweli in University of Utah!
Talib Kweli in University of Utah - Learn more about this Eventful Demand

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