Top Picking with RIG
Those of you who know me know that I love to try to pick tops. It isn’t a very gut calming process but can pay nicely when correct. I am still bullish on the market but the action in RIG is not related to the general market. RIG has a classic short term top candle and I am going to try to play the stock for a pullback to the 7 dma.
Bought: 20 JAN 55 puts on RIG at 1.50.
I am risking 3K on the trade and its hard to have a stop for it so I have to assume my entire investment is at risk. I plan to exit RIG when it returns to the 7 dma.