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yahoo stock, stock trading
[Weekend Summary]
Dear Member,
Overall, a pretty good week. I entered a bullish put spread on Apple Computer (AAPL), selling the June 35 Put and buying the June 32.50 Put for a net credit of $0.70 a share before commissions (a return on risk of 38.8% if no adjustment becomes necessary). I also was able to realize a $0.55 a share profit before commission on my
EOG spread. Initially, I had sold the May 45 Puts and bought the May 40 Puts for a net credit of $1.10 a share. Last week, I bought to close the short position (May 45 Puts) for 55 cents, thus leaving the 55 cent a share profit. That's the worst I can do -- a 55 cent a share profit -- AND I still own the May 40 Puts at no cost so I can make even more if the stock drops a bit as I suspect it might.
Micron (MU) on which I own the Jan '07 10 LEAPS calls broke the $10 barrier this week. I had sold the May 10 calls to bring in some income so I'll be watching to see whether I may need to buy back the May's. Siebel Systems (SEBL) also made a nice move up that helped my Jan '07 12.50 LEAPS calls.
Briggs and Stratton (BGG) on which I have sold the Jul 40 Puts and am in a naked position enjoyed a nice move up this past week.
I don't particularly like what I see in two of my positions. Nextel (NXTL)where I own the Aug 30 calls (remaining from an initial straddle position) dropped below a support. I may have to close that leg at a loss or create a spread to reduce the loss. Nanometrics (NANO) where I originally began a calendar spread by buying the Jun 12.50 calls and against which I have sold calls a couple of times seems to need CPR. Selling the calls against the position reduced the risk and I expect I'll have to take some action this coming week.
On the other hand, both EBAY and Yahoo (YHOO) are looking pretty good to me. EBAY seems to have bounced off a bottom and is now dealing with a resistance around 35. I own the Jan '07 40 calls on EBAY. YHOO remains in an uptrend and has recently been trading in an ascending triangle which is often bullish. I own the Jan '07 35 LEAPS calls on YHOO.
I have a bearish call spread on AMR. I sold the May 11 calls and bought the May 12 calls for an initial credit of 35 cents a share. AMR has bumped above 11, but, in my view, does not yet need any adjustment.
The markets look a bit perkier but have not yet given any clear directional signal. Both the DOW 30 and the Nasdaq are near respective resistances after upward moves. Unfortunately, the moves up last week have not been supported by any great increase in volume. The SP-500 did move up on slightly above average volume and the last two days dropped off with declining volume which is generally mildly bullish. Volatility has also dropped off giving some very modest indication of flat to slightly bullish markets.
Have a wonderful weekend.
Bill
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