Today was quite the interesting trading day. After missing a long entry with Research In Motion (NASDAQ:RIMM) several times, I took a break from writing and put my order in to write a covered call. I happen to time it with a price of $15.86. This happens to be the high of the day for RIM. This is a great example of why hedging with options is so useful. It also helps make my point that scaling in and out of trades can help average a longer term position in without having to micro time it (like what I would do with a day trade).
I am also currently watching Sears Holding (NASDAQ:SHLD) for a long entry. Target entry is currently in the mid $20s and with another strong leg down or two we could get there. Ideally it gets there Thursday for a long entry and does the bounce higher on Friday and implied volatility shrinkage over the weekend for the profit target.