Sprint Aug 3.50's were sitting perfectly still in the savanna, completely camouflaged in the chest high fields of low probability calls. I looked all around - not a soul in sight. No bullish analyst, no other hunters on any feeds or streams looking at it - it was exactly where I wanted it @ .11 - a price so low, I could guarantee a trophy. I have successfully targeted and executed the white rhino before and now I will journal my adventures.....
The "white rhino" is a rare, hard charging, momentary window of massively huge profits from a swing trade. 10x or more........and the only way to get the 10x or more is to do everything perfectly. Buy side and sell side. First, front run the trade before the charts signal buy. Next, be a buy side sniper and only fire when you can execute the perfect rock-bottom kill shot. Once you're certain you have your bottom price in your scopes....BOOM!!!! You fire away. Now you've purchased a ridiculously cheap out of the money call that nobody in the world thinks will ever do anything but expire worthless....congrats.
Now part 2 - patience and discipline - so you wait. Then you wait some more....and then some more....and then it finally shows signs of life. You feel alive. Your baby has crawled up to a double. Most likely it corrects. Doubt sinks in. Hunters are catching trades all around you and you're stuck in a round-trip ticket. Waiting game still. A watched pot never boils. You distract yourself. It triples. You want to sell so bad your stomach hurts. Not this time. 100% of my contracts to the limit.. - we are hunting for the white rhino. Now it's up to 5x. Ok do you let some go? Hell no. Halfway there. The leap from 5x to 10x is the final "rhino charge"...this is the part where you imagine a hard chargin rhino taking a beeline towards you and if you even flinch for a second you miss your mark. The rhino charge is the mind bending sweet zenith of price action and the ephemeral moment of unbridled success. Only a steely-eyed grizzled option's veteran can fly this close to the sun and still parachute down to safety. I hunt the white rhino successfully. I've likened this hunt to my childhood when I used to catch dragonflys. This amazingly beautiful delicate flying creature can only be caught before lift off.
This is a crystal ball chart. Fill in a few brush strokes and it's easier to trade cause you'll know if you're wrong really quick. A spine is a terrible thing to waste. Strong pattern to break w/out news or some fundamental change. I watched Netflix and Chipotle spine for a long time and then they snapped hard. Spines have a hard time of shaking out longs, there's not much flexibility in the pattern. So most of it is spike and consolidate. When its something else beside that it's pretty obvious and could be a signal the end is near. My premonition is spine intact, onward and upward to 800 where it can correct harder into the low 700's... or possibly high 500's if the economy turns sour, I would like to revisit this chart and see how a broken spine trades.
I read in a blog that the 13 sma was a great place to buy dips for a bullish Apple and last Fri the 13 sma was 657. I felt confident and bought on the next candlestick after the engulfing reversal. Now I need some follow through but the price of 3.25 for Sept 700 calls might be a bit high if next week starts off slow.
KKD could be my next white rhino - Nov 7.50's at .20 was when I knew I found one - took it to step 2 with the buy at rock bottom. if at 9.50 by NOV that should be around the 2.00 mark for 10x...I think this is a baby rhino and I sold at .5 - at this point I just want to see if this fit the perfect criteria for a 10x and I just found myself impatient and rationalizing it with booking profits.
So now I have to look for the next white rhino and I believe it to be KCG's JAN 4's .05 range = sniper shot and you shoot for the moon and hold on for the rhino charge...currently it's bid is at .10 and ask .15
I don't want to be a perfectionist on the KCG trade so I did pick some up at .15....still a good price, if it does drop to .05 ill be convinced this is a real 10x or more with the right sell side timing.
Some trades that didnt pan out well in august were X (US steel) having no follow through even after the DCA chart worked for it. An insider buy made me think it could continue to run but it sold off hard and I changed my mind after I saw these awesomely huge bearish bets on the Sept and Oct 20 puts for almost three days in a row and when I looked at the chart from that huge bet's perspective it made total sense! The pivot point would fail - the run was too much, too fast ,with little news and no fundamental support. My gut told me if this was a hedge those puts would be farther out then 1 month and then I knew X was going to fall for sure. Should have logged this whole event in a journal. Sprint was so awesome, now KKD and TGB looking the same I have to log this stuff in. In January I hit NFLX and TSL and VLO and now the blinders are off. Finally after 7 years...realized if I could just sit and lie in wait, the dragon fly would perch itself right in front of me.
BTW - the Sprint Aug 3.50's expired at 2.00 ;)
