Sunday, March 17, 2013

Paper Trading ABG

Haven't had time to look for lots of Cash-In-The-Box setups. But ABG looks good so why look any further. If you were to trade the ABG breakout, you would buy on the open Monday morning at market. Or if you are playing the options buy the April Call close to the money strike price of ABG. The $40 Call is about 70 cents per share or $70 per contract. The goal will be about $39.95 on the stock price. Sell when the stock hits $39.95. The stop loss is just below the breakout line in case it's a dud, the resistance now support line, at approximately $37.60ish (some people like to give it a quarter under the line which would put a stop at $37.41).

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