[Weekend Summary]
Dear Member:
After teaching the option trading class in Kauai, I had a pretty active week trading. I rolled my SPY LEAPS out a year by selling to close the Dec '06 120 calls and buying to open the Dec '07 120 calls for a net debit of $5.30 a share before commission and I then created a spread by selling the Dec '07 140 calls for a credit of $7.40 a share. Overall, those moves resulted in a before commission credit of $2.10 a share. If the SP-500 continues to climb, the 20 spread could yield a nice profit. If SPY retreats, it will give me the opportunity to buy back the 140 calls for a profit and then resell them or some other call when the SP-500 goes back up.
I also created a spread on the Biotech Hldrs (BBH) when I sold the Mar 200 calls to bring in $1.80 a share income. This time, the spread was a calendar spread where I am short the Mar 200's and long the Jan '07 200 calls.
I also sold my $5 Jan 07 calls on Tenet Healthcare (THC) for a 30 cent a share gain or a 9.6% return before commission on a position I entered on January 27th.
The straddles on Cardinal Health (CAH), Burlington Resources (BR) and Morgan Stanley (MS) haven't done anything positive yet. BR is at resistance so I am looking for a move soon. MS is also at a resistance and looks as though it could break through if it completes a reverse head and shoulders. CAH is nearing a 2 year high and a break through could be the precursor to a move up.
EBAY stayed near even (-$0.28) for the week and is in a position to either break resistance or turn down providing the chance to sell a call against my long LEAPS position.
I usually get the "Weekend Summary" out Friday evening, but I was on a plane coming home from Kauai yesterday so the "Summary" was delayed.
I hope you have a great weekend.
Bill
|
