Good chance on SNE

Hi again,

those of you that read my blog frequently (how many are there anyhow? - there can´t be too many I guess.... - maybe I should start making this blog more attractive - and maybe I should make this blog better known...) know that I don´t like to trade on Mondays. However, using the RSI(2) filter, I found a good chance on SNE.

I was watching SNE since last week - so far, it kept on falling. But, the RSI(2) is at 0.43 currently. I believe, SNE is ready for a PopUp! Last price was 37.78$. My SL would be at 37.35$. But, instead of buying the stock itself, I would be a Call on SNE.

Now, which Call should it be? - Those of you that follow the Stockfetcher forum probably know "Mary4Money". This user is posting his optionplays that are quite sophisticated. I am also working on a more sophisticated strategy. However, it´s not done yet. So, I can only advice you the following:

1) In-the-money option: already is in the money, so the gain might be smaller
2) Out-of-the-money option: gain might be bigger - if stock moves quite a lot!

I would choose a November Call - probably in the money. This would be the Call with the symbol: SNEKG.X, last price 3.50$. The out of the money November Call is at 0.70$, the symbol: SNEKH.X. Either one of these I would choose.

Good luck,
The Stockinvestigator