Merlin’s Morning Movers

Good morning traders.

I read that JP wanted me to talk some more about how options work, and I definitely will, but this morning I thought I would use a real-time example of a trade I took a little while ago, and one I may take in the near term.

I also wanted to start a series here that I will continue and update periodically as we go through our teachings and trading over the year.

“Merlins Morning Movers” – Options TradesĀ 

I will post at some time during morning hours with ideas and charts on stocks I am either actively trading options in, or watching closely for a position in the near term.

First chart I want to talk about here is HIMX


I like this chart here for a move off some potential support down here.

I bought Jan 18 $11 calls for .25 on HIMX

Looking for a move back up to 12-14 range and will take profit somewhere in there based on how it trades on a move back into that range.

This position is sized at less than 1% of total account balance and I will be risking the entire premium payed on the contracts.

Next up on my radar this morning is BB


The Society caught the last move in this name off of that last wedge/flag pattern into 10.20 area.

I would like to participate in trading this name as well if price can get back down below 11.

I will be looking load 11.50 or 12 Jan calls in BB if price gets down in the 11-10.75 range and buyers show up there to get involved.

It may seem like this stock is never going to come back to my preferred entry price, given today’s move. However if you look at how this stock consolidates after a big move up, the large moves within the consolidation lower, are usually faded considerably as the stock moves lower into potential support zones.

We want to be there, and be ready with the order pulled up if the price of BB does indeed reach out preferred entry price

I will come back after close with some educational content as promised, but I just wanted to give everyone a real-time example of what I do everyday looking for gains in options contracts.

See ya after close,



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