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[Weekend Summary]

Dear Member:

I'm reasonably happy with almost all of my positions. BBH, the biotech ETF has continued its' uptrend that began in February. I.ve been looking for a spot to create a calendar spread or roll the '07s out to '08, but haven't seen the right play yet.

Cardinal Health (CAH) has continued to move up adding value to my Jun 70 calls.

The bull put spread that I entered for a $1.20 credit on Diamond Offshore (DO) will be a complete success if DO stays above 80 until Apr expiration. The stock has continued to stay in its uptrend and closed Friday at $81.93.

I have an "iron condor" on Altria (MO). That is a four legged position where I essentially have sold a strangle with outside protection. With the stock trading around 73, I sold the Apr 75 calls and bought the Apr 80 calls and I sold the Apr 70 puts and bought the Apr 65 puts all for a credit of $1.75. If the stock stays between 70 and 75 to expiration, I get to keep all the credit. If the stock is above 75 or below 70 at expiration and I am still in the undajusted position, one of the sides would lose, but the other side would be profitable. If the stock does move substantially in either direction, some adjustments could be made, but bottom line is I would be happiest if MO would just stay between 70 and 75 through April 15th option expiration.

SPY (and the SP-500) are still moving along above the 50 day moving average and since I'm in a bullish position, that's what I want. The SP-500, like the Dow 30 Industrials, has looked strong. It looks like a break above 1311 on the SP-500 could be evidence that the upward march is still proceeding.

I own the Jan '08 15 calls on XLK, the technical ETF. This Exchange Traded Fund has continued to chug up the hill. It slid sideways this past week, but remains in the uptrend.

I bought some Jan '08 2.50 calls on Sirius Satellite Radio (SIRI) this week on sort of a "dead cat bounce." I like the play since I can make money if the stock moves up and/or by selling other calls to create calendar spreads or possibly event vertical spreads as time moves on.

The positions that are of some concern are my LEAPS calls on Micron (MU) and the Burlington Resources (BR) Aug 90 calls. BR has just been hovering around 90 and the worst thing that can happen to a straddle is a flatline at the strike price. Fortunately these are Aug options so there is ample time for BR to get moving in one direction or the other. MU has dropped just below the trend but may be honoring some support around 14.50. I own the Jan '08 10 calls.

Well, the snow almost should be over in my neck of the woods. My plow was broken, but I am getting it back today. Murphy's law, you know. Have a great weekend and thanks for subscribing.

Bill Kraft

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