New Trades!

Schools's out for two weeks, so now I have a little time to do some more trading!
As always, using my methodology of overbought/oversold and support/resistance, I spotted 3 stocks: TSLA, Z, and LNKD

TSLA

TSLA is testing it's ATH resistance level. It's overbought on all the indicators I use: MACD, RSI, W%R. The trade is -2 SEP14 270/275 call spread @ 1.67. I plan on taking profits between 25% - 50% of the credit. I think that overall market sentiment has changed over the past week, and that investors will be leary before pumping up TSLA above those previous highs... the sell off afterward was quite violent, and nobody wants to be a bag holder this time around!

LNKD

Looks about the same as the TSLA chart, right? LNKD is rampantly overbought, with an RSI reading above 80. Also, notice how volume has been steadily decreasing after that huge gap up while the stock has been steadily increasing. That's not a supportive sign. So, same strategy! -2 SEP14 225/230 call spread @ 1.40

**If either of these stocks meaningfully break through those resistances, then I'll look to get out. To me, that's an unlikely event with the way the markets are right now.

Z

A little while back, I went long Z shares as it was bumping along the 50ma, which has been proven as strong support. Last time, it worked very well! This time I'm playing the options. Since IV is so high (60+%), I could sell a put spread a little farther away from the market and still get a pretty good credit. -2 SEP14 120/125 put spread @ 1.45

**The risk in Z stems from the sell off that happened right after that huge rip. RSI is at levels that have shown strong support since March. If Z meaningfully breaks below the 50ma... then look out below! I'll be looking to get out... or use some non traditional trading strategies to invert the position.

After the success of my last call on the market, I'm trying not to ride a confidence high.

Since these trades were made on Monday, here's a quick P/L of how they're doing:

• TSLA: in @ 1.67, current @ 1.65, profit = $4
• LNKD: in @ 1.40, current @ 1.50, loss = $20
• Z: in @ 1.45, current @ 1.40, profit = $10