Monthly Archives: May 2011

PCLN: oversold

Posted on May 25, 2011 by admin

PCLN, like the rest of the market, is oversold.   Its RSI reached 36.6 yesterday.  The last time it was this low was during last year’s Flash Crash (as low as 33.15).  Statistically, the probability of PCLN price to drop … Continue reading →

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BIDU credit put spread

Posted on May 24, 2011 by admin

I purchased a put spread of BIDU today: long weekly 120 put, short weekly 125 put.  Credit: $0.4.  4 days to expire.  The reason I chose 120-125 is b/c that area (see above) shows a lot of support.  I don’t believe … Continue reading →

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Panicking market to most traders, a golden opportunity to me.

Posted on May 23, 2011 by admin

I love this type of volatile markets, where the weak and unprepared hands are washed out, leaving the true players in the game.  I placed 2 orders this morning, and they were both filled. NFLX weekly spread: 225-230 call, with … Continue reading →

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Market Condition: Range Bound, Neutral.

Posted on May 23, 2011 by admin

Chartadvisor.com:  This week’s Market Summary is neutral to slightly bullish. Schaeffersresearch.com’s this issue of Monday Morning Outlook is near term bearish and long term bullish. VIX: Increased volatility, broke through SMA 20, still under SMA 50 value.  Recently, VIX challenged … Continue reading →

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Next Week Trade Candidates

Posted on May 21, 2011 by admin

I will urge caution this week.  We may see a bit more turmoil and volatility in the market.  For short term trades, I’ll choose stocks that show better resistance to the volatility.  NFLX appears to be one of those now. … Continue reading →

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Weekly summary

Posted on May 21, 2011 by admin

Another interesting week ended on a positive note, or at least for my accounts.  All the trades (PCLN, NFLX, BIDU and others) this week were successful and we made lots of money this week.  In one account in which I … Continue reading →

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CRM: I rolled up my short options for more time value.

Posted on May 20, 2011 by admin

CRM reported good earnings.  My covered call (short May 21 $125 call) is due today.  CRM is a good stock with good time value and I want to keep it.  So I bought back the call (strike 125) and sold … Continue reading →

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OPEN: A case study of how to roll up.

Posted on May 19, 2011 by admin

OPEN: We started a position on OPEN on 3/21/11 with a covered call (April 16, $90), cost 86.8.  On 4/14/11, OPEN was above 104.  We rolled up the April call to May 21, $90, for an additional profit of $2.7. … Continue reading →

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This week’s trades

Posted on May 16, 2011 by admin

I set up the following trades today. A put spread for NFLX today (long 230 put, short 235 put, exp this Fri), $50/pair of contract.  NFLX’s 20 day SMA is 237.   I chose put, b/c of higher profit. A … Continue reading →

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Cautiously bullish.

Posted on May 16, 2011 by admin

Both Chartadvisor.com and Schaeffersresearch.com have a bullish view long term.  Near term choppiness is expected, however.  With fear rising, Greek issues and the ramifications of IMF turmoil (its ability, or lack of it, in helping Greece out of its financial … Continue reading →

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