SImilar to my OLED post, NTES found critical support early this session during market weakness. It's sitting right on key support as a convincing break here on a daily or weekly closing basis will send it to $300 or less.
Also, NTES saw significant Feb 9 Weekly Call buying yesterday with 1,000 lots going at each of the 320, 325, 330, and 340 levels.
I tend to stay at or near the money when entering Calls, especially weeklies. Not for everyone, but again, well defined risk levels right here where a "closing" break under 315 on the Daily chart negates this thesis. If that happens, consider switching to Puts with initial target at $300.
Above all, know your risk, know your levels, and trade with patience, dedication, and focus.
Also, NTES saw significant Feb 9 Weekly Call buying yesterday with 1,000 lots going at each of the 320, 325, 330, and 340 levels.
I tend to stay at or near the money when entering Calls, especially weeklies. Not for everyone, but again, well defined risk levels right here where a "closing" break under 315 on the Daily chart negates this thesis. If that happens, consider switching to Puts with initial target at $300.
Above all, know your risk, know your levels, and trade with patience, dedication, and focus.
Comment:
Trade thesis was blown out yesterday with NTES breaking under $315. It's why we use Risk Management. New support levels on NTES will be seen today and this week @ $300 and maybe lower so keep on watch as any reversal in this market could be very powerful.