One of the things that makes PLS so much fun is that the volatility is so pronounced that wins happen almost simultaneously on both sides of the options play... last Thursday $5 calls were very profitable, Monday this week $5 puts were very profitable and maybe... this Thursday will see a similar share price to last week which would allow 3 different directions within the 1 trading week... options have a Thursday as their exercise date so Thursdays are always interesting but so are Fridays when the next round of weekly options is issued and the market maker has to adjust their exposure to a variety of stocks.. If I buy a new week of calls on Friday for next week as an example the market maker has to buy a corresponding amount if stock that the call works against assuming there are no corresponding puts to match against. That's a bit of over simplification but might also help to explain some of the trading patterns by a large institution that sets option markets...
Anyway, PLS allows you to be both right about it going up and being right about it going down but if people insist in telling everyone else how clever they are for picking a massive slide in share price, please also put up how you traded that event so people can learn otherwise its just a bit childish to throw rocks from the sidelines... but back to the chart in play, or at least the one I work from.
PLS is prone to seismic shifts in price and we have recently experienced this event.. last week with the profit announcement and a bit before because PLS is going to PLS.. looks like there is another Doji formed on the Heinekens which doesn't happen often, so infrequent as a general rule that auto correct thinks its because of Heinekens not Heiken-Ashi... anyway Heiken-Ashi candles are an average so the Dojis are often a meaningful event, or not... the rapid shifts on the slow stochastic (same response as William R just different numbers) suggests that there is a lot of volatility and that a downward trend is apparent so doesn't quite match the doji on the Heiken... or does it? The breaking away of the lines on that bottom set of squiggles happens during volatility and can just as quickly reverse its trend. Why would there be a reverse?? MIN just blew the market away and IGO is just around the corner, BHP and RIO are looking good and maybe China will be forced to do something... Good time to have puts and calls open.. $5 calls might get over before they expire on Thursday... $4.80 September puts might get exercised as well... $4.31 Septemeber puts came close to value on Monday but now they are looking worthless... crazy stock price
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