On blowout earnings GRMN gapped higher this morning reaching as high as 105 in the premarket. But as soon as the market opened the selling began in volume and did not abate. GRMN turned out to be a good trading stock with substantial moves all day long but the trend was decisively down. Having bounced twice off the closed gap at 90 GRMN broke that in the late afternoon touching 86 and closing near 88. I will not speculate on reasons for this aggressive distribution I will however speculate that GRMN goes alot lower from here, 80 is still the first target. Here is an hourly 10-day chart to keep the recent action into perspective, note the money flow and engulfing nature of today's trade.
For those interested in options here is today's data for one of the options I traded (aside from selling calls this was the most profitable way to trade the action):
GRMN Aug 2006 $95.00 put (GQRTS)
Last Trade: 8.50
Date: Aug 2
Prev Close: 8.50
Open: 3.20
Bid: 8.50
Ask: 8.90
Day's Range: 2.50 - 10.20
Contract Range: 2.40 - 9.30
Volume: 3,628
Open Interest: 2,088
Strike: 95.00
Expire Date: 18-Aug-06
Disclosure: I currently hold August 90 puts and may purchase some 85's tomorrow.
2 comments:
That was one ugly close. The chart reminds me of HOM before it cratered that day after the stocklemon report.
Wow. What a dork you turned out to be.
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