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stock market today, stock market
[Weekend Summary]
Dear Member:
The markets are closed today for observance of Good Friday so the summary is coming to you a little earlier than usual. The major indices all moved up this week and volatilities dipped once again showing continued market strength. So far, it seems like the markets want to continue to push higher and I currently have only one bearish hedge position in place. Of course, I am watching the markets on a daily basis so I try to keep my finger near the trigger just in case.
I closed my put position in NVIDIA (NVDA) on Monday for an 18.6% gain before commission in a 6 day trade. NVDA has now formed a double bottom and made a strong move up on Thursday. It stopped a resistance and may provide an opportunity for a bullish play if it breaks through or another bearish entry if it dips.
I entered a Jan '09 LEAPS call position on Usec,Inc. (USU)yesterday. I bought the 15 calls that were about $2.50 in the money for $5.40. The stock has been rising on strong volume.
Anadarko Petroleum (APC) rose again this week. As April expiration nears my '08 LEAPS will convert to standard options and I will consider rolling them out to a 2009 expiration. As you have seen with these positions, I can use them as a pure directional play, and also use them as an underlying against which I can write (sell) other calls to reduce risk and generate income.
My hedge position in the Q's is still in place, but late Thursday gave an exit signal. Unless there is a drop Monday, I expect to take my loss in that position.
The spreads on Citigroup (C) and SPY are fine for now. McGraw-Hill (MHP) is heading the wrong way for my Aug bull call spread. If the stock price does not reverse up, I will consider reversing my spread to a bear call since there is lots of time left until expiration.
Sirius Satellite Radio (SIRI) is doing little and I am just waiting to sell some calls against my '09 $2.50 LEAPS call position.
For those to whom it applies - Happy Easter. Have a good weekend.
Bill
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