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trade stock, stock trading
[Weekend Summary]
Dear Member,
A good week overall. My Dec 40 naked put position on Armor Holdings (AH) is in great shape now that the stock gapped up and closed above 40. You may recall I originally opened a Nov 40 naked put for a credit of $1.90 a share and then rolled it out to Dec for an additional $0.40.
My LEAPS on Knight (NITE) are in a decent position as the stock is currently fooling around with a resistance at $10.50. A little retracement to the 40 day moving average would not surprise me since the recent run-up has been pretty steep, but I am looking for a break through resistance in this uptrending stock. I bought out of the money LEAPS ('06 12.50 calls) for a very inexpensive premium ($1.10). A break through the current minor resistance could easily result in another $2.00 run in my view.
I still own my April 15 puts on Advanced Micro Devices (AMD) and the candles now seem to signal a down move for the stock.
Originally, I bought the Feb 60 straddle on Harley Davidson (HDI). After the stock dropped, I sold the puts and held onto the call side. The stock has been cooperative and moved back up quite nicely since I got rid of the puts.
This week, I bought the Jan '06 35 calls on H J Heinz(HNZ)when the stock was trading around $36.80. It has now moved to $38.01 and I was able to move my stop (which is contingent on the stock price) up from $36 to $37.29. It looks like another upward move of the stop on Monday may be in order. I entered this presently successful position looking for a run-up into the earnings announcement scheduled for Nov 23d.
While all the above is good news, I did close a losing trade on Imclone (IMCL) when I sold the final leg of what originally was a credit spread. This trade turned out to be one of my worst for the year, (my mother told me I'd have days like that) but I am up nicely overall.
The markets have definitely shown a more bullish bent. Both the Nasdaq and the Dow Industrials have finally broken up through the downtrend that was in place since January. The SP-500 has closed above the important 1157 level. The NAZ is almost at 2039 and the next resistance of any consequence is at 2079. A break and close above 2140 may well portend a return to a bullish market. The Dow, at 10387, faces its' next resistance around 10500 and faces a critical test at 10737.
With the election over and the markets seemingly happy with the results, oil prices backing off a bit, and earnings reports pretty good, we may be looking toward a bullish phase for the market. That would certainly make for easier trading than the recent choppiness we have seen in my view.
Thank you all for subscribing. I hope you have a wonderful weekend and a great week ahead!
Bill
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