Market trend now definitely seems up with the strong break to the upside thru the resistance level. The next series of resistance points for the DOW are: 11,800/12,000 - 13,000 and then 14,200 or so.
In yesterday's rally, the leaders lagged. However, the leaders have all come up so much that they are near their peaks. Make money while you can, but be careful.
Friday, November 5, 2010
Thursday, November 4, 2010
New Position - Momentum Play - F
Ford (F) is up on strong Oct sales today.
I already have a long stock position in F.
Opening new Nov 16 calls at 0.40 (be careful buying, there are weekly options that expire earlier than that out there- these expire on 11/18.
I already have a long stock position in F.
Opening new Nov 16 calls at 0.40 (be careful buying, there are weekly options that expire earlier than that out there- these expire on 11/18.
Update on CSTR
CSTR has recovered most of the lost ground for the day.
The NOV 65 calls (purchased at 0.75) are now bid at 1.05 and ask at 1.15
The Dec 65 calls (purchased at 1.94) are now bid at 2.35 and ask at 2.50.
CAT, of course, is trading higher. But a very important lesson is not to complain about making money. Don't let the fact that you decided to sell and make a profit cloud your judgment next time around. You can always get back into the position if the opportunity is there.
The market is strong. However, a lot of my patterns might be approaching peaks - can't say if it will be next week or next month, but it goes without saying that be careful out there. We may see a wave 5 out there, which would mean strong move to the upside in a short amount of time before the peak is hit. The question is whether I will have the courage to short the market when the time comes...
The NOV 65 calls (purchased at 0.75) are now bid at 1.05 and ask at 1.15
The Dec 65 calls (purchased at 1.94) are now bid at 2.35 and ask at 2.50.
CAT, of course, is trading higher. But a very important lesson is not to complain about making money. Don't let the fact that you decided to sell and make a profit cloud your judgment next time around. You can always get back into the position if the opportunity is there.
The market is strong. However, a lot of my patterns might be approaching peaks - can't say if it will be next week or next month, but it goes without saying that be careful out there. We may see a wave 5 out there, which would mean strong move to the upside in a short amount of time before the peak is hit. The question is whether I will have the courage to short the market when the time comes...
New Position - CSTR call options
Buying Nov 65 calls for CSTR for 0.75.
Buying Dec 65 calls for CSTR for 1.94
I am already long in CSTR stock.
The stock broke out of a flag pattern recently. If the pattern repeats we could see a huge gain here.
Buying Dec 65 calls for CSTR for 1.94
I am already long in CSTR stock.
The stock broke out of a flag pattern recently. If the pattern repeats we could see a huge gain here.
Market / Position Update - CAT
Close out your position in Caterpillar (CAT) Nov 80 calls. Calls are bid at 3.35 and ask at 3.40. The entry price was around 1.26 so this is a nice 165% return for less than a week. Stock will probably go up farther but since my options are Nov options, I am closing out the position.
BID, of course, if back up. Trying to decide if I should play it again or not. There are plenty of other opportunities in the market these days.
I got into ISRG 3 or 4 days ago. Still pretty reluctant to recommend it because it is a very high risk stock if the market drops. But so far, the stock has been climbing for me. So far so good.
CSTR is still hanging out around 60. I will probably add to that position at some point in time.
BID, of course, if back up. Trying to decide if I should play it again or not. There are plenty of other opportunities in the market these days.
I got into ISRG 3 or 4 days ago. Still pretty reluctant to recommend it because it is a very high risk stock if the market drops. But so far, the stock has been climbing for me. So far so good.
CSTR is still hanging out around 60. I will probably add to that position at some point in time.
Wednesday, November 3, 2010
New position - STEC / Other updates
Opened a new call position in STEC - Dec 17 calls for 1.20 - Options are currently bid at 1.16 and ask at 1.26.
BID plunged over 2 dollars this morning without any reason or news. That means sellers came in around the point where the recent previous high was challenged. The Dec 40 options went down from near 7 to around 5 at this time. Will continue to monitor and decide whether to take profit or continue to let them run.
Update: I decided to sell the BID calls and bank the profits. I don't like the chart at this time. Although it will probably continue to go up now that I am exiting the position. Selling the options at 4.70 - Remember this is pure profit since 1/2 of the position was closed earlier for 100% profit. This banks about a 95% profit on the whole position.
I am getting concerned about the market nearing a top. The market has been acting strong. But continue to watch closely for signs of weakness.
BID plunged over 2 dollars this morning without any reason or news. That means sellers came in around the point where the recent previous high was challenged. The Dec 40 options went down from near 7 to around 5 at this time. Will continue to monitor and decide whether to take profit or continue to let them run.
Update: I decided to sell the BID calls and bank the profits. I don't like the chart at this time. Although it will probably continue to go up now that I am exiting the position. Selling the options at 4.70 - Remember this is pure profit since 1/2 of the position was closed earlier for 100% profit. This banks about a 95% profit on the whole position.
I am getting concerned about the market nearing a top. The market has been acting strong. But continue to watch closely for signs of weakness.
Monday, November 1, 2010
CAT (Caterpillar) Update
CAT seems to be picking up momentum. The options I got for 1.26 are now trading at 1.88 bid, 1.90 ask (after they made a trip down to 0.80). Will continue to follow and determine exit point.
DOW seems to have good momentum at this time. Indicators seem like this might be the try that gets us into new highs.
DOW seems to have good momentum at this time. Indicators seem like this might be the try that gets us into new highs.
Subscribe to:
Posts (Atom)