Sunday, June 22, 2008

JRCC Coal - Looking at for Buy Tomorrow

JRCC current price $59.96
50 Jul 08 Call - Bid 12.10 Ask 13.10
Good Downside Protection
Altman Z = 3.2
Chart in Stack Up

Will see how it opens tomorrow and make final decision.
Posted by at

3 comments:

reteng2 said...

How do you pick your stocks?

Have you looked at http://rongroenke.com/
or http://www.syscw.com/

If not take a look and let me know what you think.

What does "stack up" mean?
thanks, reteng2

June 22, 2008 at 7:32 PM
Hal said...

Stack UP means the stock price is above the short term MA (7), above a medium MA (20) and above a long MA, in that order. A stack down would be just the opposite.

I used CSE and Power Options to select my stocks. I have more success using Power Options and doing my technical review before making a final decision.

I am ussually looking for income with high probablity of being called. Trying to be conservative after being burnt early.

June 24, 2008 at 5:49 PM
reteng2 said...

HI, Thanks for the quick feedback. I am still trying to choose an option method to use. The CSE looked OK for a while, but as I learned more and reread the book for me, the 'management' was too much to deal with. I read a lot of the cow reports about TSS this, SSR that, CPR. Too much mumbo jumbo. Also too much $$ for me. Looks like to get good you have to spend at least $5K + the cost of the tools.
Your approach sounds good, pow/opt tools.
Have you looked at Kurt's RadioActiveTrading? Atleast with that you know going into a position what the maximum you can lose. He trys to keep it at about 5%, but then the upside is unlimited. Unlike covered calls.
I will probably decide on a method during the summer. Bob Brinker is still bullish on the market.

Hope to hear from you again. olddave

June 24, 2008 at 6:03 PM

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