It really feels like a Saturday. Fridays have a feel. Mondays have a feel. Thursday, not as much. Anyway.
I’m looking at my now out-of-the money $NWL position and am seriously considering liquidation. The chart doesn’t look horrible, but it’s in a place that makes me uncomfortable. This is a small position, so that makes me hesitate a moment before culling it completely. These will expire worthless below 18, two weeks from Friday. Time decay has also eaten away significantly from my current cost-basis of 0.85. I’d be salvaging a few bucks with the sale, but even if they expire worthless, it’s still less than my original risk profile.
$MSFT (July 31 Call) is another position that may be ejected before the day is through.
One thing that sours me on a stock is when price closes below the lower Bollinger Band. I realize that this goes against conventional wisdom, seeing that a close outside of the BB should be viewed as ‘abnormal’ and to expect mean reversion soon. Over time I have come to find that often the opposite is true, and price tends to continue in the direction of the band-break. This is especially true when the bands start to expand in width along with the drop in price. The chart below of $MSFT is a good example of what I’m talking about.