|
|
trade stock, stock option
[Weekend Summary]
Dear Member,
YOU WILL BE GETTING THE OPTION SERVICE FREE FOR THE MONTH OF SEPTEMBER!!! I will be travelling in Europe for a couple of weeks in September and, while there, I will not be trading. Before I go, I will place stops on all existing positions and send out alerts to let you know where the stops are placed. When I do that, if the market goes against me, I'll be stopped out of the positions automatically, and you'll know I'm out. There will be no charge for the service for the rest of the month and trials will be extended through September.
I had a neat fast trade on Kb Home (KB) on Monday. At around 9:00 A.M. I bought some Jan 75 Puts for $7.60 which was a very good fill since my order was to buy them for $7.80 or better. Less than 2 and 1/2 hours later, I was stopped out of the position and sold the Puts for $8.50. That was an 11.8% return on investment before commissions in under three hours. This trade went very quickly and is certainly not typical, but I can't complain about a fast profit. The residential construction sector has dropped beneath the 50 day moving average for the first time since April so I am looking for some other bearish opportunities.
Knight Capital (NITE) on which I own the Jan '07 7.50 LEAPS calls has been continuing up along a gentle uptrend line. There is resistance at $8 and slightly above, but the chart has formed an ascending triangle that suggests it may be able to break through.
CHINA is doing much the same thing as NITE. It is in an ascending triangle with a double top resistance around $3.45. A break above that level could signal a nice move and the Jan '07 2.50 LEAPS calls are already profitable.
SPY inched up (+$0.18) for the week. Since it mirrors the SP-500, I will be watching my already profitable Dec '07 115 and 120 LEAPS calls like a hawk. The SP-500 as well as the Nasdaq and Dow 30 are a little shaky in my view. The Nasdaq has formed an imperfect head and shoulders and could well drop toward support below 2100. The Dow has formed a quadruple top resistance in the vicinity of 10,719 and could well retrace to the July lows just below 10,300. Volatilities as evidenced by the VIX, VXN, and VXO have turned up which may be a precursor to a downturn in the major averages.
MU has dropped right down to support and I sold some Jan 12.50 calls against my Jan '07 $10 LEAPS calls for $0.65. That brings in some income and reduces risk in the position as I wait for the stock to resume its' move up. Since I own the LEAPS calls it is a covered position. I had done the same thing with my YHOO LEAPS by selling Aug 35 calls against my Jan '07 35 calls. YHOO made a strong move this week and dropped back a bit today so I'll be watching to see whether I need to buy back the August position.
EBAY retraced this week, but remains above the day moving average. SEBL is right on support at the April low but has formed some candles that suggest an upturn. It isn't time for me to jump ship yet, but I am near the railing.
Briggs & Stratton (BGG) has been a disappointment. It has now broken the uptrend that began in April so unless it bounces, I'll be ready to exit.
Don't forget, SEPTEMBER IS FREE. Have a wonderful weekend.
Sincerely,
Bill
|
Home |
Subscribe |
All Rights Reserved |
Privacy Policy |
Advertising |
Contact Us |
Terms of Use |
Disclaimer |
Links
|
trade stock
stock option
|
