CKEC

The reason I originally decided to trade options was for the leverage. The ability to utilize small amounts of money for large 20%+ returns in days. Even though I wanted to keep this blog strictly options, I want to look at a stock I sold on Friday that traded like an option, CKEC, Carmike Cinemas.



I purchased CKEC as it was headed south at an average of 2.02. On Friday I sold all but a few shares at 4.51, a 123% return in a few weeks. Take a look at the chart, the stock went like a rocket from 1 to 4.5.



There are a couple reasons I am mentioning this trade.

One, I have learned recently that stock does allow for large quick return. But even more important, this type of move shows the type of moves that beat up, $1-5 stocks, have experienced during this rally. In my opinion this is another example of why this rally has become way over extended...

I actually like this stock, and will buy some more if we get a move down into the 2's or low 3's, but after such a run, i thought it was time to take some profits (not to mention, I haven't had profits on anything in a while and needed to re-familiarize myself with the concept)