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ZEUS First Target Hit for 10.4% Gain

ZEUS (Olympic Steel Inc) has hit the first target for a 10.4% gain. Consider booking partial or full profits and/or lowering stops if holding out for T2 (final target).

ZEUS daily Aug 2nd

ZEUS daily Aug 2nd

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Aug 2, 2016 9:41am|Categories: Completed Trades - Short|Tags: |13 Comments

13 Comments

  1. jameske August 2, 2016 9:45 am at 9:45 am

    Hi Randy,

    When did Zeus become an official trade? It says 2 August in the trades section but this is 2nd August and the market just opened? I don’t short generally anyway, but how could one have made a short position on this if it only opened today?

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    • rsotc August 2, 2016 10:25 am at 10:25 am

      July 20th. If you click on a trade category, such as Active Short Trades in this case, the date next to each symbol in the “symbol cloud” at the top of the page is the date of the most recent update on that trade. If you click on the symbol, in this case ZEUS, you will then see all associated posts for that trade down below on the page in reverse chronological order, with the July 20th post with the short entry for ZEUS located just below today’s post. Under the comment section of that original post, you’ll also see my comments in reply to a question yesterday about holding ZEUS into earnings today (which was the catalyst for the drop… and fortunately, priced into the charts as anticipated).

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  2. Shambo August 2, 2016 9:52 am at 9:52 am

    yes, nice pick randy, nice surprise today on 700 shares.

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  3. jameske August 2, 2016 10:29 am at 10:29 am

    @rsotc Hi Randy, I see. I thought the dates on the trading section represented the initial entries, not the latest post on them. I will pay more attention in future. As I said, I do not short generally anyway. Good to know for the next longs to come.

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    • rsotc August 2, 2016 10:50 am at 10:50 am

      jameske- As you prefer to trade long only, you might want to customize your email settings for the new post notifications (front page posts only, not related to trading room activity).

      To do so, click the mail (envelope) icon located on the right end of the menu bar at the top of any page of the site (or click this link: http://rightsideofthechart.com/email-notifications/ )

      That will bring you to the email notifications page.Under the first option (Immediate Notification), click on the word “profile” at the end of this sentence: ‘You may manage your subscription options from your profile.’

      That should bring up a page with your email notification settings. You can uncheck all the categories that you don’t care to receive email notifications on, such as any categories related to short trades (Short Setups, Active Shorts, Completed Shorts, Unofficial Short Trades, etc..)

      If you follow or take some of the long trades on the site but prefer use your own price targets & stops, then you might opt to uncheck the trade categories associated with Completed Long Trades.It may seem like there are some redundant categories but those are parent & child (sub) categories so make sure to uncheck all or it might be easier to click the “Select/Unselect All” box at the top to unselect all, then only check the categories that you wish to receive notifications on, such as those associated with any Long trades and maybe all market analysis. Let me know if you have any questions.

      -Randy

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  4. Gaucho August 2, 2016 12:59 pm at 12:59 pm

    Very good trade Randy @rsotc.
    Thanks for your yesterday post.
    T1 achieve, now looking for T2.
    Rergards

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    • rsotc August 2, 2016 1:03 pm at 1:03 pm

      Gaucho- Congrats & good luck! T2 still looks likely to be hit, especially with T1 clearly taken out today. At this point, it would be prudent to lower stops to somewhat above the T1 level, as that former support level should now act as resistance if tested from below. The actual support line in which I placed T1 above was at 24.85 so a stop right at the T1 level (25.06), either on any cross above or a daily close above, if you want to give it a little more flexibility, seems ideal. I’ll probably update that as the official stop when I get a minute

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  5. ben711 August 2, 2016 1:52 pm at 1:52 pm

    Looking for some education on options trading.

    Closed puts too early for 40% gain instead of 100%. Can somebody more experienced with options explain options price movement? Stock price is still at the same level where I closed but puts are 50-80% more expensive.

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  6. jacant August 2, 2016 2:09 pm at 2:09 pm

    Volatility component of the options price is now spiked.The amount of the premium is determined by several factors – the underlying stock price in relation to the strike price (intrinsic value), the length of time until the option expires (time value) and how much the price fluctuates (volatility value).

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  7. roguetraderone August 2, 2016 2:32 pm at 2:32 pm

    Missed out on Zeus, it was down 13% when I looked early in the open. Shorted X instead. I didn’t see any divergences, just taking advantage of market downturn, big run up and technicals turning down. Would love to see analysis (please?) on this as I didn’t do my normal analysis (my dog ate my homework?) before taking the plunge. Nice gain so far but no idea where supports are other than the bottom edge of the rising wedge.

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    • rsotc August 2, 2016 3:27 pm at 3:27 pm

      @roguetraderone – You might consider a stop just above the recent highs, letting this one run. If you would prefer to target more modest but higher probability profits, price targets would be any (or all) of the numbered horizontal lines. Should this prove to be a wedge overshoot, I would expect a sharp move back down inside & then below the rising wedge pattern with a max./final target around 13.00. Wedge overthrows/overshoots occur when prices pop sharply above a bearish rising wedge pattern (or below a bullish falling wedge) right around the point where the pattern would typically be expected to break down (as in the case with X). Daily chart below:

      The first sign the wedge overthrow scenario might be in play would be a move back within the wedge (yellow TL or below 23.30 to be safe). The next sell signal, and a powerful one, would come should prices move sharply lower from here & go on to break down below the bottom of the wedge, in which case I would say the min. target would be around 16 & quite possibly the 13.00 area before the correction is over.

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  8. roguetraderone August 2, 2016 6:00 pm at 6:00 pm

    Randy, thanks! I never would have even thought about wedge overshoots or anything like that. Actually I didn’t know it had overshot the wedge. I drew up a different (wrong?) one. I’ll go do my homework now. I’ll do my best to not think about that price going to 13, I have a hard enough time to keep my greed in check!

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