Not a good day today at all!
The markets are holding on to key levels but it’s more of an Indiana Jones holding on to a cliff with snakes waiting for him at the bottom kind of holding, which is not the ideal kind if you are Indiana but it sure is fun to watch.
Great call to stay on the sidelines today (pat pat pat) as well as taking it off the table yesterday. I don’t know if you listen to me when I say these things but at least I listen to myself. I didn’t listen to myself on TOL because I held the silly March calls through the afternoon and lost half of my 30% gain. Now I’m only up 15% in one day and I’m pissed because I was a greedy idiot instead of just being proud of the profit. Of course, the Apr $35s held and increased their gains, although they were up more as well but nothing to kick yourself over. This goes back to a major premise of this column which is: Do as I say, not as I do – I tend to take risks more often than most people should!
Read this morning’s comment section to see how oil has been forced up today. This is just about the last move left in the trader’s bag of tricks as barrels are now laying right on the 200 dma of $61. A downward move from here could be severe.
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Not many of our trade watches would have been worth it today.
VIA gave us the Aug $45s for $1.10 but the recovery was so anemic I’m not sure I want them!
GOOG went up so much I had to take the $370 puts for $10 right at the close. After a $30 (8%) move in 5 days, I’m hoping for a slight pullback tomorrow.
ABX went the complete opposite way due to a guidance warning that expenses are increasing. This hit the whole industry but ABX has a unique situation in Chile working on glaciers with environmentalists staring over their shoulders that may not be repeated among their peers.
I took a small amount of the GG Apr $22.50s for $3.30 but I’m waiting before committing.
OWENQ got away from me with a 26% gain today – oh well…
WMT also took off but not before yielding the Jan ’08 $42.50s for $8. Now to be patient. Just to be clear, of course I am buying the ones I am waiting for a pullback on during a down day – when else do we get the pullback?
EK had a wild day, opening down and then leaping up. Just shows we shouldn’t try to outguess a good stock.
Someone decided today was the day to buy WFMI so we will look for a possible shorting opportunity now at around the 200 dma of $65.50.
I almost took the BTU $50 puts right at the top but I was cheap and I bid $1.50 before I left in the morning and they never broke $1.70. I miscalculated the 5% rule (+$2) vs. the option strike as it was a new issue due to the split and again I am kicking myself as they finished at $2.30. I’m in on the $47.50 puts though for $1.25 so there’s still hope.
http://finance.yahoo.com/q/bc?s=BTU&t=1d
RIMM had a catastrophic day as NTP called them liars and said their claims of the disputed patents being invalidated are false. This opens a big can of worms (SEC style) if true. Also weighing on the stock is the possibility of a shutdown tomorrow. Even though the options on this stock are ridiculous, it could make an excellent day trade tomorrow.
COBR did exactly what I said it would and fell off the table during the conference call. If you didn’t take the additional 5% gain it racked up this morning who can have pity for you?
http://finance.yahoo.com/q/bc?s=COBR&t=1d
AAPL almost had a huge day. It was rejected harshly off the 50 dma of $73 so it’s time to put those Jan $65s to work and sell the $70s for $4, locking in 10% as long as we don’t dip below $68.
IMAX added another 3.6% but stopped me out at $9.75 – I’m not sad about that!
Last Tue TOTD FMD had a great day today, heading back in the black.
Today I sold TM calls against my position. At $4.50 for the $105s against my $11 buy in, I couldn’t resist.
Tomorrow we find out if Indy can pull himself back from the precipice of if he plunges to his doom, taking many virtual portfolios with him! Tune in for the fun….
