Charts To Avoid (Part 2)
As a continuation from part 1, I've shown another type of stock charts to avoid here. What do you see they have in common?
UVN is what I would call a "turtle" stock. Yes, it has a nice uptrend, but if you observe carefully, you will realise that this stock only made a minute move of $1.8 in 6 months! Is that exciting or what? Stock investors with long term view may buy such stocks, but not for option traders where delta and time value are key components in determining your option value. Swing traders alike will avoid such stocks as well. If this stock only make a move of $1.8 in 6 months, how much do you think it can move in a matter of a few days? You do the maths.
CCE is "stuck in the mud" type of stocks. It's been trading in a range of $21.2 to $19.8 during the last 6 months. Such stocks are not worth my time. Stay away from them.