EXTR – Extreme Network Inc
2017-12-17
I am currently down past my stop level. Friday was an extreme selling day – very volatile 7%. I’m holding because I expect a bounce off of this. IBD Rankings are still strong. There is still time before the next earnings announcement.
2017-12-11
I am currently down $.43 /$13.03 = -3.3%. The past week hasn’t been trading right for this stock. The MACD is trending towards to the zero line and the Histogram is negative. In fact the Histogram turned negative the day I bought this. The Slow Stochastic has been close to being oversold. The volume has been decreasing since the large drop.
I’m expecting support at $12. My stop loss is $12.09, but I may give it more room. The trading history is much more volatile than GLW.
Checking the Options
$15 Jan 19 Call
35 Days
Bid .05 Ask .25
352 Open Interest
50%IV and
.16 Delta.
I would be able to get filled at .15 with 2 contracts. This is 1% and would cover commissions. I’m waiting for the shares to rebound to sell the options. I am watching this and waiting
2017-12-05
I bought EXTR – Extreme Network Inc yesterday, because I closed out my other holding and was looking for another opportunity. I bought 200 shares and got filled at $13.03. My stop loss is at 7% and will walk away at $12.09. Although this has a more volatile trading range and could need a wider stop.
This is a lower priced stock and have options available. I am legging into a covered call. The next earnings announcement is Feb 6th. This was featured in Investor’s Business Daily – New America Vol 34 NO35 for this week. It was also featured in the Stocks in the Spotlight.
Their IBD rankings at the time are:
99 Composite
94 EPS
97 RS
52.37% ROE
75% Debt
113.4 shares outstanding
The $15 call for Jan 19th have Bid/Ask mean of .30 or 2.3%. The $15 would have a capital gain of $1.97 or 15%, but this option has a delta of .22. So the the market doesn’t think this is highly probable to be profitable option to buy
Bryan