|
|
trade stock, stock trader
[Weekend Summary]
Dear Member:
Today was reminiscent of the child's saying: "Ashes, ashes, they all fall -- down! Each of the averages plummeted today breaking recent uptrends. Volatility rocketed along with the fall. The Dow and S&P 500 fell to the 100 day exponential moving average without pausing at the 50. Though the Nasdaq only dipped down through the 20, it certainly was not a day to bring great hope to the bulls. As I mentioned in an alert to Trend Trade members earlier in the week, it is October. Historically, that bodes extreme caution for the bulls.
Option Trader was able to close two winners for the week. The calendar spread on EBAY resulted in a small gain (I guess 6% before commission isn't all that bad in a short time), but as we all should know, it is difficult to go broke making a profit. The Nvidia (NVDA) LEAPS position was considerably more spectacular, earning 90 cents a share or a 9.5% gain before a $12.95 commission in just 10 days.
Today, I added a position in the Mar 35 puts on Safeway (SWY)which gapped down at the open. It looks to me as though the stock might bump down at least another $1.
I still hold Business Objects (BOBJ) in which I had opened a straddle. I was looking for some volatility even though the company is being taken over by SAP. It doesn't look like I'll get much, if any, of a jump so I'll probably pull the plug next week.
The spread on Citigroup (C) is making money on the short leg and may well provide the benefit of another adjustment or two before it expires in January.
The spread on Sirius Satellite Radio (SIRI) is fine for now and no adjustments at the moment. It had begun to look like there was nothing more to do on the SPY spread except await expiration. Depending on where the market goes from here, some adjustments might be warranted though not yet.
Similarly, the spread on the Q's is still doing OK and I will not do anything with the short Jan 51 leg unless we see further breakdown.
Overall, a pretty good week for Option Trader in the face of a wild market.
Bill Kraft
|
Home |
Subscribe |
All Rights Reserved |
Privacy Policy |
Advertising |
Contact Us |
Terms of Use |
Disclaimer |
Links
|
trade stock
stock trader
|
