As stated in my post a couple of weeks ago regarding safe option bets, or safer than the average, when showcasing the chart for BVF – Biovail Corporation, I have found a perfect example of front month, in-the-money calls bet with a high chance of finishing well within a 100% gain goal. The symbol for the stock is ARMH. Take a look at the consolidation and retracement that occurs after the stocks breaks out above its long term trending channel.
Notice how it retests the channel as being now support, after breaking it as resistance? The stock then goes to make new highs in a steady uptrend that has been lasting for over three weeks. I would not buy the stock now as the retest and bounce has already happened and although powerful momentum may take the stock even higher, I consider it done.
Soon, I will be posting more examples before-the-fact