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Underline stock: HOG
Entry date: Friday 2/15/2013
Entry price: $71/contract
Strategy applied: Selling March 55 short call
Reasons to enter the trade:
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Technical: HOG seems to hit resistance at $55.
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Probability: There is approximately 73% chance
HOG will stay out-of-the-money for March $55 call.
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Option Greek:
Since we are option seller, theta works in our favor. In fact, the
market closes next Monday 2/18/2013 giving us an extra day for theta
working for us. Theta decay bases on calendar day, not trading day.
Please note we enter this trade purely based on technical and
probability analysis. There is no fundamental analysis of HOG stock in
this trade.
Dennis Phan 潘家墉
15 February 2013
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