Wild Ride

I've increased the import size of my charts, so hopefully this will be easier to see. Anyhow, what a wild ride yesterday with Deckers (DECK) and so many other stocks yesterday. What you are looking at is a weekly 5-minute chart on DECK. Because of the huge volatility yesterday, I closed out of my Jun $145 put position at $6.10 to lock in a nice gain.

There is a cool options calculator over at the CBOE to check on fair value and implied volatility, which helps me get in/out of options. Plugging in the latest numbers on DECK, I left some money on the table, but I'm okay with that. I'm off to look for some other opportunities, so good luck to all.

Deckers Put

I was looking at some charts Monday morning and came across Deckers Outdoor Corp (DECK)and noticed a large gap up with a high of $158.47 on Friday after their quarterly earnings report from a day earlier. I'm looking for a retracement back towards the 20-day MA and 8-day trigger, which is between the two red horizontal lines. The range of the lines is set between $133 and $144. In addition, the stochastics are approaching the overbought range, which provides a little bit of validity.

I purchased 1 Jun 2010 put with a strike price of $145.00. I got in at $3.70 and today traded up at $5.40.