New Trade: YUM

Entered YUM on Friday. 

I purchased 5 April 75 call options at $0.10. My exit point is $0.60, loss limit is $0.05. Here’s a look at my potential results:

Shares or Contracts Purch Price Capital Out Sell Price Capital In Comm & Fees Gain / Loss

% Gain & Loss

2 0.10 20.00 0.60 120.00  10.00 90.00 450.0%

Current charts for this trade:

130222 YUM


2 thoughts on “New Trade: YUM

    • Good question! I do what I call earnings research on certain stocks that I feel move quite a bit from day to day. This “research” involves reviewing the Daily chart for past years (as far back as I can go) and looking for strong trends in price movement (up and down) that occur year over year for the same quarter. My homework on this one shows this stock tends to rise the last week of February into the first week of March. We are approaching that timeframe so, I checked my charts to see if YUM was setting up for this potential move. What I look for is the stock trending in my direction on my trend chart (the daily chart for this trade) and all of my indicators crossing in my direction at the same time on my decision chart (the 55min chart for this trade). I only enter the trade when the indicators on my action chart (8min chart for this trade) cross in my direction at the same time.

      Hope this answered your question!

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