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Tuesday, October 26, 2010

BID - Update - New Position - FORM

I closed out 1/2 of my position in BID Dec calls for 5.30.  The calls had a cost of 2.15 - so a 100% profit.  I will continue to monitor the stock today and decide whether to take the profits on the rest of the position or see if I can make it to the target of $50 per share at which point the calls will be worth $10.   The other option would be to close out the current $40 calls and buy the $45 calls for around 2.20 or so.

FORM is a stock that is getting hammered today. But the weekly indicators are not showing that the selling can continue for long.  So I am going to take a chance.  Buying April '11 - $10 calls for 0.60 (Bid is 0.55 and ask is 0.70 but my bid at 0.60 executed almost instantly).  I know, this is kind of long term for me - I usually can't hold onto any position for 6 months - but this is one of my long shot gambles.  Lets see how it plays out.

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