Stock Overview: Cleveland Cliffs Resources ($CLF) was an earnings winner up 10% on the day.
Market Overview: The market is giving back big gains from the past two weeks on negative trade headlines and FED commentary.
Technicals: The daily & weekly candles on this name are bullish making higher lows higher highs – everything you want to see in a multi day runner. Huge relative strength in a weak market.
Trade: The trade was buying calls after the VWAP flush and reclaim. The stock is loaded with shorts with 16% interest and the stock near a 52 week high.
Summary: The entry was clean and green right from the start. The stock grinded to $12 before flushing back down to 11.81, pretty close to my entry. The stock eventually went higher testing the $12.10 HOD.
My exit was a disaster selling on the break below $12. I should still be in this trade holding for my original $12.50 target. With the level of short interest and price action I wouldn’t be surprised if it got there today. Completely abandoned my trade plan after seeing the quick $12 flush. Poor patience is costing me some huge gains. The stock could be a runner again next week if it gets upgraded.
Result: +.17 contract (GAIN)
Actual Exit: $11.99
Risking ..20 to make .70 cents