McMoRan Exploration Breaks Out

McMoRan Exploration(MMR) broke out of a tight formation last week.

While it seemed risky at the time, the pattern of new highs with strong volume pointed toward higher prices. I don't see any better indicator of institutional buying than volume

You can see from the 60-minute chart below the breakout of a tighter formation. In trading options, my calls have to be right in direction and timing, or I will lose or just spin my wheels. I need to see acceleration and velocity, which rarely ends after one session. Continuation moves are the norm rather than the exception, but those without patience will pass on such a trade. An example of trading the Feb. 10 options is below, from an entry date of Jan. 11 to a closing day of Jan. 20.

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