Lot's going on this week:
Traded out of Quiksilver (ZQK) again for 25%.
Picked up CROX on the pullback due to news that the new CEO was leaving... This overshadowed the narrower loss on earnings report. Volume was huge and closed back above 7.
ITMN will be releasing its pre-FDA meeting documents soon, this may drive more of a pullback given the two clinical trials showed good and bad results. Not for the faint, but I am still picking up shares outright and plan to spread some cover before the report if the movement is good. Otherwise holding on to them.
Berkshire B is doing well! closed over $80.
APPL is over 204, still watching 2011 Jan 200 Calls.
XOM 2011 75$ aren't doing so well, good time to buy? or double down in my case!
Will be selling out of CBAI gain for 80+%.
Still waiting for COYN to get some attention. I still love this product, only reason I stay in. Although I could have used the loss in the 2009 TAX season...
Happy Trading!
Sunday, February 28, 2010
Friday, February 26, 2010
Tuesday, February 23, 2010
30 Cent Risk, Unlimited Potential (ITMN)
I tried to pick up ITMN at 14.50 outright to cover over the next several days. I did not get in as the low for the day was 14.75. So what's one to do???
Calendar Spread between March and April. I figure the volatility is because of the March 9th meeting so using April as the back month makes sense. Currently the March 15 calls are 3.90 as of 5:54pm and the April 15 calls are 4.20. Setting up a calendar spread yields a .30 debit. To set this trade up sell the March 15 calls and buy the April 15 calls. Maximum risk is .30.
Now this only really works if ITMN is below 15 on March expiration Friday, otherwise the forward month will need to be used to cover the short if it is above 15.
Happy Trading!
Calendar Spread between March and April. I figure the volatility is because of the March 9th meeting so using April as the back month makes sense. Currently the March 15 calls are 3.90 as of 5:54pm and the April 15 calls are 4.20. Setting up a calendar spread yields a .30 debit. To set this trade up sell the March 15 calls and buy the April 15 calls. Maximum risk is .30.
Now this only really works if ITMN is below 15 on March expiration Friday, otherwise the forward month will need to be used to cover the short if it is above 15.
Happy Trading!
Sunday, February 21, 2010
Intermune March Covered Call Volatility
I am looking at ITMN again this year, those that remember last year, this made us a ton of money... Current volatility is high given the March 9 FDA discussions.
Support for ITMN is in the $10 range and with 15 Call premiums over $4 the risk of losing on this trade is very low...
Analyst have a $25 target and well over 50% belief the FDA decision will be positive.
I will be looking for a pullback to 15 or below and sell the March 15 and/or 17.50 calls. Volatility prevents a good married put strategy this time...
More to follow...
Happy Trading
Support for ITMN is in the $10 range and with 15 Call premiums over $4 the risk of losing on this trade is very low...
Analyst have a $25 target and well over 50% belief the FDA decision will be positive.
I will be looking for a pullback to 15 or below and sell the March 15 and/or 17.50 calls. Volatility prevents a good married put strategy this time...
More to follow...
Happy Trading
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