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Tuesday, January 20, 2015

Momentum Trades Using Options

I entered three new positions using call options: Celgene (CELG) April 2015 $125.00 call for $6.35 Skyworks Solutions (SWKS) May 2015 $70.00 call for $8.21 U.S. Oil ETF (USO) October 2015 $15.50 call for $3.55
The genesis for my first two choices: CELG is continued upward chart pattern and support along 10-week moving average. SWKS is coming out of some consolidation and I'm hoping will springboard higher. The choice to dip my toe into USO is strictly based on the huge downward drop. I'm thinking the volatility will level out and prices will begin to level off if not rise.

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