[Weekend Summary]
Dear Member,
As the market tumbled, my PROFITS ROSE. On Monday, I bought the Jan 70 Puts (CBMN) on Chubb (CB) for $4.80. I was able to move my stop a few times and, today, was stopped out for $6.10. A profit of 27% before commissions in only 4 days!!!
My Bullish Put credit spread on Open Text (OTEX) has been another story. I had been short the Aug 25 Puts (QFTTE) and long the Aug 22.50 Puts (QFTTX) as my protective leg. OTEX broke down through support ending its bullish nature so I bought the Aug 25 Puts (QFTTE) to close that losing leg. I incurred a loss on that leg of $1.35. HOWEVER, I have held onto my Aug 22.50 Puts (QFTTX) which are in the money now and making money. Countermeasures like this enable one to make lemonade from lemons when a position seemingly turns against you.
The CREE calendar spread - long the Dec 20 calls and short the Aug 20 calls is doing just fine and I have made no adjustments.
This week, I also entered a straddle on Harley Davidson (HDI) which was near a resistance. I bought the Feb 60 calls (HDIBL) and the Feb 60 puts (HDINL). All I want is an increase in volatility or a strong move in EITHER direction, or both. Almost on cue, HDI fell and has continued its fall. No adjustments yet, and I am happy with the position.
Today, the market broke down through some fairly serious support. I remain bearish in my outlook until the market tells me otherwise.
I'm off to teach an advanced trading class this weekend. Hope you all have a wonderful weekend. Good trading.
Sincerely,
Bill
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