3 Potential Breakout Stocks: Potash, Apple, Visa

I’m Back

It has been a while since my last post. I’ve been busy with the new house and a seemingly endless train of weddings to attend. I’m still trading though. Below are the positions I opened on Fri 5/29/08.

Apple (AAPL) Oct 08 $200 15.50 Sold $15.80 Up 1.9%
Potash (POT) Jan 09 $145 65.80 OPEN Up 15.7%
Visa (V) Sep 08 $100 3.80 Sold $4.40 Up 15.7%

3 Potential Breakout Candidates:

Potash (POT)

In my last post I mentioned my Potash trade. Potash has been good for me. I’m still trading it. POT had a nice run today up 4%. I purchased a Jan 09 in-the-money call on Friday for $65.55. It is up $10 for a nice 15% gain. I would consider selling, but I believe POT is on the verge of a breakout. Tomorrow I will be looking out for any weakness to build on this position. Watch this one closely. This may be the time to load up.

Apple (AAPL)

The second position I opened was Apple Oct 08 $200 Calls. I actually closed out that trade for some small gains on second thoughts. I’ve been burned numerous times with Apple before their world wide developer conference. The play was this: Purchase some calls before the conference, wait for the announcement/release date of the “iPhone 2″, promptly cash out as volatility spikes up and interest spikes in Apple stock. However, I’ve decided to play it safer with a less volatile stock – POT. I decided to roll my money over into Potash instead. The stock is setup with resistance at $190. You may follow the strategy and hopefully you’ll see $200 once the iPhone 2 release date is announced.

Visa (V)

My 3rd position I also closed out for a solid 15% in a few days. This one I believe is ready to break out. I want to wait for confirmation before I put my money on it. As such I decided to take my short-term gain and move on for the time-being.

Keep an eye out on these 3 stocks for breakouts in the next 2 weeks. I already have my money on Potash as I see it in an early stage of a breakout in progress. Visa looks to be setting up and Apple… well I’ve mistimed it and have decided to sit it out this time. All 3 stocks are trading near resistance so use your judgement before trading.