The markets are experiencing some profit taking and consolidations after a very nice bull run. Several issues are approaching our strike price. These include OPEN, NFLX, FFIV and LVS.
- 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. This effectively brought our purchasing cost of OPEN down to $84.1. After disappointing earnings of yesterday, OPEN is trading around $90 now.
- NFLX: We set up a spread (Long May 6 $220, short May 6 $225). 225 is NFLX’s 50 day SMA which has supported NFLX for the last 2 years. NFLX is now around $229. We have 2 more days to go on this.
- FFIV: We set up a spread (long May 6 $95, short May 6 $97.5). FFIV has been bearish since its Jan 2011 earnings report. It’s been under SMA 50 and 200, but above 20 day SMA (98.31) which should be its short term support. FFIV is now around $98. Our overall positions on FFIV is net short.
- LVS: Missed its estimates and the shares are beaten down to $43 from $47. We are net short on this.
