Weekend updates

The airline index is up over 150% and after the latest terror attempt the sector has taken a hit today. LCC is back below 5 in the after hours. How I plan to play this... I plan an

US Airways (LCC) + C

LCC skyrocketed Tuesday on the overall upgrade and positive sentiment of the Airline Sector. I took advantage of this and sold calls on my shares locking in profits if the rally holds. The volume on Tuesday was over double the average and LCC still has a some noticeable short interest. It pulled back Wednesday only to recover and hold good support over 5 and is now showing a good base in the 5.30+ range. Volume would technically support the new base but the short interest is in the back of my mind on this one. That and the expectations for LCC is still to be less bad in 2010 but still posting a loss.

If you are a long investor this looks like a good play, I think in 2011 if this is in your portfolio it will be a great value play and you can sell OTM calls on it while holding, especially if you go out 3 months or if you are happy with some extra cash you can look at the 11 and 12 LEAPS.

I have also been picking up some CITIGroup (C) since their offering...

Happy Trading...

Airlines

I got turned on to the Airline Industry recently out of a greedy trade. However it was not a sector I ever watched even though I fly several times a month. The airline sector has been perform steadily well over the past few weeks. This is due in part to positive results in travel on some of the major airlines, as well as less bad on others. Also, the decrease in oil has helped tremendously. This along with solid analyst upgrades and recommendations to inluce solid profitability by 2012 has made most of the major airlines a strong long-term value play. UAL, LCC, CAL, DAL and AMR to name a few big players...

I would keep an eye on these and consider some covered calls if you decide to buy long. There are bound to be dips over the long-run and buying back the calls on down days may be a good way to build some cash reserves.

Happy Trading...

MDOR is Steadily Rising

MDOR.OB. Closed at 1.68 today. .20 higher than when I mentioned this in October and over .70 from August when I started watching this. I like the slow growth. It is not being pumped or dumped. Volume has been very good on strong up days. News is also positive and even though PR has been paid for the news is actually news and not just hype. I still see strong potential for this company over the long-term. Apparently they are supposed to be on CNBC next week. Let's see what they have to say and if there is a short term pop.

Happy Trading

Options Education Opportunity

Let's take a short look at XLF 16 Nov Calls. With the market rebound the last few days and XLF back at an intraday over 15 from just under 14 why haven't the call options rebounded to where they were the last time XLF was at 15?

If you haven't heard of an options term called "The Greeks" this will be your first introduction to one of them named Theta, T for time. Theta is an option indicator relative to time. You should be familiar with the term time decay and options as well as how it impacts the overall makeup of the premium. This is the indicator that is showing the 16 calls will not move much more than a cent or two. The XLF would have to be above 16 in order for them to become worth much more than .10 by the time next Friday rolls around.

Many new options traders trade premiums like stocks anticipating the premium price will continue to climb as the underlying climbs regardless of how little or slow the underlying is moving in relation to the expiration date. In other words they forget that the XLF Nov 16 call option, with 6-days left on it, is pretty much worthless at this point and with no real volitility no reason for the premium to be worth anything much more than 0. XLF would have to be over 16 by next Friday at 4pm in order for them to begin to be worth more than worthless or a couple of pennies. Why would you pay premium for an equity you can buy outright for less?

This is why I usually suggest buying options a couple of months out providing time to recover losses or bad timings.

Happy Trading...

Berkshire Split!!!!!!!!!!!!!!!!!!

If you haven't heard already, Berkshire Hathaway common is splitting 50 to 1. Talk about opportunity for the mere mortals! This is a by product of his purchase of BNI announced this morning.

If you want to be long this is one to be long...

Happy Trading

Making money in markets like this

A couple of pointers:

Don't just not be greedy be gracious. Set tight stops and limits that will execute intra-day, especially days like yesterday where we had a 140 point swing from top to bottom. 10% returns instead of 25-50%. Look for an aggregate percentage return over multiple trading days instead of all at once.

If you are buying Puts or Calls to trade premiums by them in the money not just at the money, this will provide more cushion to recover if the market swings widely in either direction. Set your buy up lower than you normally would to take advantage of the swings.

This will be another telling week with more economic data to solidify consensus on going higher or lower this year. Trade accordingly.

Continued Happy Trading...

Dry Bulk Shipping

I have been secretly stashing shares of Teekay Tankers (TNK) away for a while now, a few shares each month during the bear recession. TNK ships oil around. People get container shipping and dry-bulk shipping confused. Where as consumer and commercial buying indicators are backed up by container shipping dry bulk is what indicates performance in the commodoties market around the world.

Things to look at with shipping are the Baltic Index, Spot Rates, Charter Contracts, shipping capacities. Many of the shipping stocks suspended dividends in order to take advantage of the ship purchases during the downturn.

TNK's dividend is around 20% at today's price. Frontline (FRO) was another favorite for a ridiculously high dividend payment...

CNBC had a good post today so here it is: http://www.cnbc.com/id/33492795

Happy Trading...

CopySync Update COYN.OB

COYN is also down, what is happening to my trading lately???

COYN was able to secure 1.5M in funding, this funding issue was analysts number one worry. Running out of capital before getting your product out and selling strongly is the death nell of most small businesses. After the cash infusion they had comments redacted the cash positioning worry.

I picked up another 10K shares on this down-turn. Although Wall Street and the Investor dictate a stock price this product is absolutely great and on target with its niche.

We'll have to see what the yearly earnings statement looks like and any guidance. Also the 1.5M is supposed to help them clear a backlog of orders. I think if this ever gets the attention of the investor and they do any kind of due diligence this should reach back to the .35-.50 levels and form a new base. As long as the pump and dump scammers stay away.

Happy Trading

Another XLF Update

These are the times I need to be a full time trader, or set tighter stops...

The XLF after being up over 20% after purchasing is down, way down today... It is down well over 20% and into oversold territory and dropped below its 200-day moving average as the dollar strengthened and banks were having issues and downgrades. This condition sometimes creates an environment for a rebound and with as cheap as the $16 Nov Calls are would make for a good trade going forward, all depending on Thursday's GDP numbers. Especially if it can make it back over its 200MVA...



Currently sitting at .10 and over 350,000 open interest looks like the trend is for XLF to go higher by the Nov expiration. With XLF over 15.20 these should be easily over .20 or 100% return....

More Happy Trading...

Hindsight in Perspective

If you had purchased a thousand of the Amazon (AMZN) November 2009 110 calls (QZNKB.X) last week at a price of .70 or $70 each for a total of $70,000, you would have been able to sell those calls now at a price of 10.70 or $1070, for a total of $1,070,000. This would be an increase of 1,428.57%. Not bad for one day's work.

From Trading Goddess RSS 26 Oct 09

Happy Trading....

The Recession is over!

At least that is what analyst's are looking for this coming week. GDP numbers are due Thursday. This should show the first positive quarter of growth indicating the end of the recession is true. 3% or better is the number, last quarter was -0.7. Wednesday should provide an indication if the durable goods number is higher than expected or at least in-line with expectations. This coupled with American company's strength from overseas sales should drive the 3% GDP growth fairly easily.

Now the concern is are we making our money overseas from a declining dollar and will that drive US investor's to overseas markets? My long-term investments that are in foreign owned companies are up almost 80% ytd as compared to my US value which is closer to 40%.

As volitile as this market has been looking at some spyder ETF's and trading the options on specific sectors may be a smarter move given this weeks impact of durable goods and GDP.

Trading the DIA may be a good money maker but I would keep the sell limits tight and not get greedy.

If tech turns around, especially after the strong top and bottom line reports of some big players the QQQQ's may be another option as well.

I think this week's reports will be a make or break event for the current rally, so watch it close and place trades appropriately, if the numbers are bad pick up some DIA, QQQQ or SPY puts.

One way to take advantage of this is to set up trade triggers with TDAmeritrade. If the market takes a drop as the numbers are released and the index drops set up a buy of PUTS at/near the money and take an immediate market order. First time you will ever hear me say to use a market order, but if the numbers are bad then it will drop fast. Reverse the logic to take advantage of strenght if numbers are good.

Recommend looking into Trade trigger's if you have never used them before.

As always, Happy Trading!

XLF Update

How about that market?

XLF Nov 16 Calls are up 23% since I bought them, holding out for C and BAC earnings.

Now that the DOW is over 10000 I'm starting to look at my pullback strategy with the DIAmonds.

Happy trading...

Acorda Therapeutics ACOR

Pay attention to tomorrow's recommendation to the FDA. Right now there is heavy OCT PUT interest but the Calls for 15 and 17.50 offer great premiums. If the recommendation is positive the opportunity for a successfull covered CALL or cash-secured PUT for Friday's expiration is greatly increased. If there is no announcement tomorrow play at your own risk, as it could come Friday before the close and tumble the share price. However if you are bearish it would be the time to pick up PUTS as an alternative strategy...

Happy Trading...

INTC and the Futures

INTC blew away earnings and almost immediately after trading was reinstated futures shop up 70 points. they have since leveled off in the mid-50's. XLF who dropped today regained its ground on the futures. If JPM reports well at 7a.m. look for a huge day. DIA is approaching a a hundred bucks a share right now.

Looks like we have made some good calls for now...

Happy Trading...

XLF Calls

If you read the FAZ, RIFIN and PUTS post this is another option to use options to take advantage of the continued run-up in financials through earnings... Look at NOV 15 CALLS, over 100k in open interest and XLF is up 38% since July and the bullish calls and upgrades on the financial sectors should keep the rally going...

Happy trading

FAZ, RIFIN and Puts

What are we expecting with 3 major banks reporting earnings this week. JPM, C, BAC plus the DOW approaching 10000. The RIFIN is at its highest point to date at over 800. If you missed out on the bank run-up play the opposite side. Analysts expect BAC to be $30 in 12 months and JPM around $60 this means 3X ETF that are bearish on the financials are going to continue to drop. Look at Nov or Jan 16, 17 PUTS for FAZ, Jan buys you more time value and takes advantage of the possible January effect. I remember when UYG a 2X financial bull was 1.91, I had 11k shares at that point but got greedy and ignored the rules and remained bearish on them hence the FAZ lost identified on the right column of the blog...

Banks are about half way through their balance sheet losses so still much upside, especially with fees, refinances with rates so low, M&A and restructuring...

Happy Trading

DIA Conviction

My partner and I were discussing purchasing the Oct 97 DIA calls based on a belief that Alcoa was going to have a positive earnings report. Obviously we didn't believe it as much as we thought we did else we would have bought at the money today. Oh well, AA reported well futures are up over 40 points and the calls will obviously gap up in the a.m.

So how do we play from here, I think the Oct 98 should be strong since JP and GS report next week and after all the fees and refinance and balance sheet magic should report well and well that will send the DOW even higher...

Happy trading...

Diamond Calls!

Jan 95 DIA Calls have 20,000+ open interest! +DAVAQ 106 days to expiration. If 3rd quarter earnings surprise and consumer spending jumps for the holiday the market should head higher after the bad new is digested. Look at last Friday, futures down well over a hundred points, we were green for a good part of the day and closed slightly lower after a huge increase from expected employment numbers...

Happy Trading...

Magnum D'or Resources (MDOR.OB)

I started to watch MDOR at the end of August when it was around .90. I like this company for what it does and its market potential is huge. They recycle old rubber into chips and now new tires are being made. They recently purchased the largest tire recycler in the country. Today they are trading at over 1.40 a 65% return since late August.

Sep 29: Magnum Completes Acquisition of Hudson, Colorado Facility, One of the World's Largest Tire Landfills, and Perhaps Currently the Largest in the USA--thats when the charted jumped.

They are starting to get significant news coverage and attention and I don't see anywhere but up for them.

Link to the news:

http://finance.yahoo.com/q/h?s=MDOR.OB&t=2009-09-30T08:00:00-04:00

Happy Trading...

Closed ARNA PUTS

I closed my Arena Pharmaceutical Sept 5 PUTS at .10 today. I didn't wait for them to expire worthless just in case, and I think it was a good call considering ARNA closed just over 5 today. Not a bad trading since I sold them at .65 last Friday...

I was going to play a covered call, but the Put premiums were great and I was bullish on the stock to start so it was the right play. No money out and all money in...

Happy Trading...

A Diamond Strategy, Options on DIA

Diamonds Trust is an exchange traded fund (ETF) that track the Dow Industrial composite. Buying calls or puts at the money at market open or before an expected correction is a fairly low-risk strategy to provide recurring income.

The last week of August led the $INDU higher and market history says that we are do for a minor correction in September. With that the Diamonds were trading around 95 on the last Friday of August so I picked October 92 PUTS at 1.90. As I expected the market to make some southern adjustments. As expected the market on average news took profits broadly an ended up with an almost 200-point drop on the 1st of September, quicker than I had anticipated but to lock in profits I was able to sell between 2.50 and 2.90 on2 September. I still believe we are headed a little further south which would provided greater returns on my puts, however, the number one rule in trading is not be emotional—hence greedy.

The idea here is that this is a fairly repeatable trade, whichever side you are on for the week or month you can buy CALLS or PUTS around the money and take profits relatively quickly.
I don’t recommend selling calls or puts, especially in this market environment since you can get yourself into trouble rather quickly. By being a buyer you know what your maximum loss is going into the trade.

Happy Trading

Overbought Equities, You Have Options...

The latest market rally has left many equities in an overbought state and market madness states that profits will be taken in the near future.

Profit taking is almost certain with any market pullback and history shows a September market correction of about 1% so a correction is almost inevitable. With the state of the economy a severe correction is a possibility and it is now time to protect yourself.

Fortunately you have two options, sell outright and take your profits or buy some PUTS at a month and strike price you are comfortable with to protect against any unforeseen radical market correction. I would recommend December to get through most of the 4th quarter earnings.

With the recent rally a profitable strike price should be available. Many premiums are around 5% of the stock price, inexpensive but don’t forget to factor that in as a deduction of your expected profit return.

Happy Trading

OSIR Cash Secured PUT Trades

Finding high premium options on volatile biopharmaceutical (BP) companies can be very profitable. Of course they are very risky as well. Following a few guidelines can help you mitigate the risk and still receive substantial returns on these types of companies. Recent winners include Dendreon DNDN) Human Genome (HGSI) and if the strategy works again Osiris Therapeutics (OSIR).

BP options premiums are usually at their highest when a clinical study announcement or FDA approval is imminent. In the case of OSIR not only are results imminent but the shares are hard to borrow so the PUT premiums are very high.

When I go into one of these trades I look for the “environmental factors” that can affect the stock while waiting for the announcement. These are earnings release date, mosts BP operate negatively during R&D phases. Available cash or partnership agreements to make sure the company can continue its study and other development activities through clinical trials. I try to find as much information about the product and its current success/failures during prior phases as some indicator to how the current phase may resolve. Phase 3 trials are usually double blind tests so no one really knows until the data is compiled but you can find extenuating conditions, such as severe patient reaction, death or the FDA putting a stop to the trial. I look at volume and steady price increase closer to expected results indicating more analyst expect positive results. I also look at a strike price I am comfortable with buying the stock at which is usually around the 50 or 100-day moving average.

Once I am “risk-satisfied,” Since I am bullish, I start selling PUTS at an acceptable risk/reward premium. For OSIR the Sep 10 PUTS were upwards of $3 when the underlying stock was trading just north of $11. OSIR is now over $14 on increasing volume and result expected any week now. I am break-even if the stock falls to approx $7.

For those more risk averse, as the stock rises the PUT premiums dropped. You can buy-to-close at any time and lock in the profits

Happy Trading...

Ancestry.com to file for $75M IPO

I'll be checking this out and posting as I find out more. They are looking to pay back CIT Group with 25% of the proceeds. Good news for CIT...

My last IPO Pics were Visa, VMW, RAX and SOLQ!

Happy trading...

Oh yeah, BIEL is still around .08! Crazy.

Ancestry.com to file for $75M IPO

I'll be checking this out and posting as I find out more. They are looking to pay back CIT Group

Penny Infatuation

I have never spent this much time researching and following penny stocks. However, BIEL has acted as I expected. I hope you got in when it dropped below .05 last week, if so you are sitting pretty. "Independent" analyst reported today that they expect .30 - .50 if the FDA approves the product. On that news the stock jumped again to just under .08 and on over a hundred million shares traded. There may be little chance to pick this up under .06 -.065 between now and FDA approval so if you are inclined to throw some money this way have the guts to hang in if it does get sell offs like last week after the CC. I would take that as a double-up opportunity, not a chase the stock to zero mistake. After FDA approval this will certainly move up, even if on momentum alone.

Happy trading...

A Pivot in the Diamonds?

DIA has been up and up and up lately with no pullback at all. It is in the overbought range but no decisive motion was had Thursday or Friday. Even if this is consolidation of a new base there fundamentally should be a pullback to the last range of resistance, around $88. So how do you play this "Pivot Trade?"

I think despite the run we have had there will be a pullback, nothing dramatic but fundamentally required. People will be taking profits this week as you would normally expect in a rally of this type.

I am planning on seeing how Monday unfolds, some more earnings out before and after the bell, and will look at buying Aug 88 DIA PUTS. If it looks like we may in for a stronger pullback the next support should be around $82. I would look at spreading out between 88 and 82.

If you have time check out the same for the QQQQ and SPY!

Happy Trading...

COPSynch Software (COYN.OB)

COP Synch is a small Texas company with a great product in my opinion and the two founders have an excellent plan and are both experienced police officers as well as business managers.

I mention this hear, as my second OTC trade, since I think it is a great product and after they presented last week at the Federal Law Enforcement Day in D.C. the volume rose as I expected. Volume still isn't huge but it was 3X avg volume and price was up as well.

PR here: http://www.globenewswire.com/newsroom/news.html?d=170105

I picked this up some time back based on what I saw in their application of current technology and reception the product has been receiving as well as the assistance they provided to help an agency with a $10M grant proposal to purchase and install their software. I removed my limit order on it and will be watching this as a potential investment or longer term swing trade.

Happy Trading...

Cyberknife system is one treatment for Prostate Cancer

This was a heading on my newspaper's section front page of the Health & Fitness section. It chronicled the story of a gentlemen who was told that nontreatment for older persons is the answer. Not happy with this he answer, he was older than 75, he went to California to treatment with Accuray's Cyberknife, previously cleared for use on the head, neck and upper spine, the rest of the body was cleard in 2001. The system is a robotic radiosurgery noninvasive alternative to surgery and involves no anesthesia or incisions. I recommended this to friends back in the $4-5 range and recommend picking up more when it pulled back to the $3's. I was happy with the consolidation around $5 and began selling $5 puts. Very successfull, they expired each time and even if they hadn't and were put to me I knew I could pull out of them based on the current trading range ARAY was in and the great news and growth of the company. It has now been trading above $7 and I am looking at the Dec 7.50 PUTS as my next naked put trade. Will be looking for a premium of $1.50. I may consider selling some calls as I continue to watch the company and would like to pick some up as a long term investment. The product is expensive, but it works, saves lives and can only get better.

Happy trading...

ESLR Follow up #2

Looks like I traded out on time yesterday. ESLR announced and although the numbers looked better than first quarter, less bad didn't work for them this time.

I am looking at a covered call set-up for Dec 2.50. could pay for christmas itself. I see ESLR trading in a tight range between 2 and 2.25 or so until the numbers get better.

Happy trading...

High Frequency Trading

The new buzz on wall-street. Here is a great explanation if you are interested.

http://www.greenfaucet.com/economy/demystifying-high-frequency-trading/77528

Closed ESLR Today

I received a report on the largest short holdings yesterday and of course ESLR was on it with a 35% increase in shorted shares. That coupled with its earnings report tomorrow and a current 15% return (75% annualized) I sold the current ESLR shares for a small profit (%3, 36% annualized) and bought to close out the Sept 2.50 PUTS for a 62.5% return.

Happy Trading...

BIEL Update!

I can't complain taking profits, BIEL settled down to my sell price so I am a little relieved. This morning it shot right to .095 and if you look at the graph, those with more time on their hands than I made a ton of money! It then got traded most of the day and settled just over .06. (The after hour spike is a fluke in OTC stocks, it is not over .08 in the AH)

So what do we learn from this? Almost a perfect text-book "buy the rumor sell the news play."

The press has been hyping this thing (not necessarily wrongly), blogs and discussion groups have been throwing around the FDA approvals (The belief was the company would announce at the CC or before) like they were a sure thing and due out today and the company press about its product is great. All these things tied together cause us humans to become very greedy and in an attempt to make a quick buck radically buy a stock up without any real understanding of what they are doing. Those that are fammiliar with this trend can fairly easily take advantage of this and buy on the way up and sell just before the news. The hard part is in the timing, I could have held and attempted to get out at what I thought would have been the peak, however I too probably would have got caught up in the "It's going to hit a dollar today" psychology.

So the Shark Food for today is to see the buy the rumor and sell the news trend with some trading discipline thrown in to round out the meal. How many of your bank accounts return over 100%?

Now, I will attempt to keep my shark sense on this because this company has great potential for all the reasons people are touting. The hard part is taking an investor verses a traders mind set and buying some for the long run. Not ready to do this at this price, if it pulls back below .05 I'll start buying some for an investment purpose. The only other "speculative investment" I own is Cord Blood America (CBAI). For the same reason, I like the CEO, I like the business plan and they have a tangible product...

Happy trading!

BioElectronics

144% profit last Friday. sold the rumor, didn't wait for the news! although it was up another 25% today.

Can't complain about another double this year!

Happy Trading.

ESLR Follow up

Again, profitable on both sides of the trade. The 2.50s got put to me as planned. ESLR touched 2.43 today, and currently I have a 2.25 cost basis. My Sept 2.50 puts are donw to .45 from the .80 I sold them at.

Two options now. Buy back the 2.50 Sept puts at .40-.45 my cost basis then drops to 1.75.

Hold and wait for September as planned then wait for the ride up towards the latter part of the year.

The largest risk right now is Jul 30 4pm earnings. Yes, this Friday! Could ESLR be in the earnings trend, being bought up based on some expectation? or because SPWR beat tremendously.

I'll watch it Friday. If it continues its trend up I may close it out Friday close to the bell to be safe.

You don't go broke taking a profit!

Here is the chart of ESLR... A couple of solid trading ranges, which is great for us option types.

Sep - Sep trading in a $10 channel with a hump. Now a solid 2-2.40 channel. This coupled with some volitility is great for selling puts! This worked great for Accuray (ARAY) in the $5 range, then earnings were good and reduced the volitility. Also, you can see we have trading interest down at the $2 range, look at the volume. Plus some good upgrades and recommendations to finish it off.

Happy trading.

Follow up to the Diamonds (DIA)

Totally Profitable, enough said!

There was some significant 80 and 92 strike put spreads (Aug-Dec) brought last week on the SPY the S&P 500 ETF. By significant I mean 100's of thousands of contracts. A pretty bearish bet over the next 4-months. I think the fundamentals obviously point to a pullback at some point, we are overbought and touching the top band of the bollingers on the $INDU.

The timing is key now. For the Diamonds some Aug 88 puts might be good. Spread it out and pick up some Sept 85's as well.

Happy trading...

Diamonds and Returns

Ok, I have been talking to my local group of investors about buying some 81/82 or 83 strike calls on the diamonds (DIA) since Friday. As we were going into earning seasons there were several reasons to believe that earnings were going to beat estimates and expect a short upward run.

Some of the reasons:

Estimates were soft.
Cost cutting was raising balance sheets. (Not actually increase in margins and sales)
Enough of a PSYOP campaing when Alcoa (AA) announced a shortfall in expectations and guidance.
The market doesn't makes sense.
Upgrades on Goldman Sachs
Revised unemployment numbers
etc. etc. etc...

Any of those strike prices bought on Friday are up well over a %100. I just got back from a business trip and have been slowly watching the DOW rise while my mobile trading platform is stuck in upgrade mode. No I can't complain to anyone, much, since it is a free third-party platform for TDAmeritrade and I don't like AMTDW.COM wireless for time sensitive trades and its lack of insight into charts and volume.

So now I feel like I did the week of 9 March 2009 when I was on vacation and had cash tied up in puts, which wasn't a bad thing in a bull-run (bear rally market) but certainly not a 2.50ish FAS or 1ish UYG trade, or any of the banks for that matter. Yes, I had planned on buying FAS that Monday morning but was busy waiting in line for an airplane and trying to close some of those puts to free up some cash.

Anyway. So the data is out, GE, C and BAC report tomorrow, does it matter, C is owned by the government, A shot that GE should be worth $2 and BAC has its own MOU rumors. So if their earnings are bad does it matter and how will it affect the market.

With IBM and GOOG reporting good earnings it wasn't enough yet for the market to gurantee a rally, futures are down at this moment. Anticipation on C, GE and BAC are holding them back.

If they do report well and more importantly guide well, I would be buying the 85$ DIA July calls around 10 am with a TS €or limit of your choice. If they are bad would be buying August 83/82 or 81 DIA calls and taking advantage of the added time benefit and pullback that is academic in this traders market.

Let's see what happens... Yes, I am expecting to get my first half of my ESLR shares tomorrow!

Happy Trading.

First Shark Sense Trade Review

I am a fan of Solar stocks especially when they are around the $2 mark. This could be because I missed the SOLR, SOL, YGE etc... rally. However, when ESLR got an upgrade and a $5 price target my shark senses were perked. I had to investigate a smart way to get into ESLR. Especially since the target price would score a double... So I know you don't know me yet but I am an options trader and when I want to buy a stock for a long holding, especially a speculative one I look at selling PUTS to take advantage of the market environment and pressure on the stock to pick up the stock at a reduced price. Now with ESLR I SOLD July 2.50 puts and September 2.50 puts today. I should either keep $2100 dollars if ESLR is above 2.50 next Friday and in Sept or start picking up my long shares for under $2 courtesy of the premiums and volitility. .55 for July and .80 for September... 20 contracts each. Here is an article from Schaeffer's research, I like it because it's bullish with a realistic warning that there is always potential for selling pressure. Downside risk, the stocks' 52-week low was a buck and with the premiums I received is well worth any risk of touching lows as this is a long play.

Now if Solar would break away from its Oil correlation that would be great. We still need to pursue alternative energy!

http://www.schaeffersresearch.com/commentary/content/optimism+approaches+peak+levels+on+evergreen+solar+inc/trading_floor_blog.aspx?ID=93964