I closed my Harmony Gold Minding put right at the close. It dropped over 9% and put me in the profit column on this one finally so I took the profits and ran. Since there was not viable put spread on this stock, I could only buy a put and so every day I experience time erosion and so a 9% drop in a day is something I'll seize on. Although I do feel this stock can easily continue lower towards the $3.00 area.
Wave X was much higher and longer than I anticipated and so it caused a delay and erosion of profits as a result, but a profit nonetheless. Here is the final tally:
Bout HMY Put for $0.64 and sold it for $0.75 for an 17% profit.
HERE IS THE ORIGINAL TRADE SETUP:
Harmony Gold Mining (HMY) has reached buying capitulation as you can see from the sharp volume spike at the wave (1) high. This thing has been on fire but as stalled significantly the past few weeks and triggered a bearish signal on my proprietary indicators. The wave (2) correction is unfolding as a W-X-Y combination correction so I expect a move lower toward my target area of $2.80 - $3.00 quite over the next couple weeks. Here is the trade I put on yesterday....it is trading at a better price now with a big gap up this morning but I expect that gap to be filled with a move downward quite soon. I don't like any of the put spread options so I'm going with a small position on a straight put only:
Buy to Opoen HMY May 20 4 Put @ $0.64.
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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