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trade stock, stock trader
[Weekend Summary]
Dear Member:
This week definitely was not too inspiring for the bulls or the buy and hold crowd. Both the Dow and the S&P 500 broke down through what I consider to have been a major level of support and the Nasdaq Composite is right up against the support level. Unless the Dow can hold around 12750, it looks to me that it could fall another 500 points before reaching the next level of any serious support. Generally, I have pulled in my bullish horns and put on the bear suit at least until I see a clear reversal accompanied by significant volume and I don't see that yet.
The Option Trader had a pretty good week, capturing a 29.4% overall return before commissions in only 6 days when I closed the remaining contracts of the Nvidia (NVDA) puts on Tuesday.
I also entered a put spread on Mbia (MBI) on Thursday that has a potential return on risk of 38+% at expiration now 35 days away. The position is currently already profitable on paper as the stock was accomodating and quickly moved in the right direction.
Also, so far so good with the iron condor on Baidu.com (BIDU) which is set to expire next week. There is a fair amount of profit in the trade already and if all goes well, there could well be more as time value evaporates next week.
I have previously written about the Genitope (GTOP) trade. The spreads on Sirius Satellite Radio (SIRI) and SPY have a long time to go and no adjustment is yet necessary.
I would like to get one more premium out of Citigroup (C), but have been unable to find the right strike and premium to sell against the long position.
I am happy to report that the publisher (John Wiley & Sons) sent me the first copy of my book, "Trade Your Way to Wealth," this week and the release will be next week. It is available on amazon.com for any who may be interested.
Have a super weekend.
Bill
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