CCJ - Typically pulls back on new 52 week high - sold Puts
Chris,
After reflection I was wrong to recommend buying on the breakout yesterday (Friday, 4/12). Looking back at the past year I noticed that CCJ typically will retrace on a new high. A 61.8 fib retracement brings the stock back to the previous breakout and a gap which where I like to be a buyer on a bounce.
Joe pointed out "The premium for Put CCJ 40 9/21/24 is about $1.85.
For a strike price of 45, the premiums for CCJ range from $1.05 (May 10, 2024) to $8 (Jan 16, 2026)." Those premiums are on the upper end 52 week range of the volatility. Thanks for pointing out Joe.
I prefer shorter term premium and sold the May 45 for $1.19 which brings the B.E. price right to the 61.8 Fib. I would take assignment at that price.
After reflection I was wrong to recommend buying on the breakout yesterday (Friday, 4/12). Looking back at the past year I noticed that CCJ typically will retrace on a new high. A 61.8 fib retracement brings the stock back to the previous breakout and a gap which where I like to be a buyer on a bounce.
Joe pointed out "The premium for Put CCJ 40 9/21/24 is about $1.85.
For a strike price of 45, the premiums for CCJ range from $1.05 (May 10, 2024) to $8 (Jan 16, 2026)." Those premiums are on the upper end 52 week range of the volatility. Thanks for pointing out Joe.
I prefer shorter term premium and sold the May 45 for $1.19 which brings the B.E. price right to the 61.8 Fib. I would take assignment at that price.