It's a tacky pun, but AWE continues to do well. At 12.45 pm, it's up another 3.5 at 149 after touching 152.5 in early trade. Yesterday morning saw an announcement of an Indonesian oil acquisition which the market is impressed with and signs are that the new management team is finding favour.
I'm getting my head around the implications of trading larger size with fewer positions and trying to work out what time frame would work. For example, with AWE, do I hold through a congestion/retracement and look for the next leg up? Probably, but it depends on how big the spike is. If it kept going for another couple of days I'd probably just take profits.
The prospect of trying to find trades with big payoffs has got me thinking about options again. Macquarie bank stands out on a weekly chart and with $30 a strong possibility and the stock trading at 2520, a 2 or 3 month out of the money call option would stack up.
Here's the weekly. For the moment, I'm just thinking it through but would be interested on a pullback. It's a bit stretched on the daily.
It's another play on a market rally and the idea is that this would be an outperformer if the market took off.
No comments:
Post a Comment