ALD Play

Yesterday I closed my long call position on ALD. The stock had broke out above resistance, and I purchased February calls one strike out of the money, hoping that momentum would continue within the next two weeks.

The stock showed good strength and volume on buying, the first day, but it was the second day burst that brought the stock up. It started showing weakness, or at least sideways movement when it failed to make a higher high after the break out. So rather than sitting on this, I decided to take profits.

In a period of about 24 hours, my calls made a gain of 266%. An excellent way to begin the first full trading week of the year.

Taking Profits

My position made a 50% return, so I closed out my position.

Total time in market: 4 hours and 15 minutes.

It was possible to see this one run more, but support looked like it was forming at 31.10. Since I was trading the front month, I wanted to keep the trade short. Had I traded Dec or Jan's I probably would have let them test and try and break below on another trend.