It's All about the Odds

Trading is all about odds. An excellent idea even if executed flawlessly does not amount to much unless the odds are in your favor. When the odds are highly favorable, a quick idea can be profitable.

I think Whole Foods (WFMI) presents such an opportunity right now.

The stock gapped up big in on heavy volume in early Feb (I was long at that time). The stock was very close to the bottom at that time, and it made sense to go long even after the gap-up.



The current gap-up puts it at a 52-wk high, and is a tempting short.

Further, expanding the horizon to a 2-year period shows formidable resistance at today's highs.



I have shorted WFMI with a stop at 30.13.


4pm Update:
I've covered the Naked Puts I sold on Las Vegas Sands (LVS).