Monday, May 19, 2008

TKC option and Cell Phone Stuff

As an aside, I did not trade any QID or QQQQ puts last week. The market seems to be ignoring the "too high" signal on the short term model. The reason you use models and charts is to NOT rely on emotion. However, if I was in the QID trade I would have sold already with a loss. I will let this play out for sake of the trade and post an exit when the model shows "too low."

On another note, I bought an October 20 Call option on TKC today for 2.20. TKC is a turkish cell phone company. I looked at a bunch of cellular company charts this weekend, and I would say that it looks to me like the whole sector will be moving higher.

I believe that the foreign companies provide a better opportunity on cell phones. Their demographics for usage tend to lag ours. So some of their companies may still have a lot of phones to sell (and profits to make) before the population is saturated with cell phones.

I love the pattern on TKC. The stop loss for me on this is if the stock closes below 17.28. If the pattern goes as I anticipate, I think 300% profit is achieveable before expiration. That gives a good reward on risk. I think the stock is likely to go above 30 this year and it is a little below 20.00 now.


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