Wednesday, May 14, 2008

Position Update

Ever tasted slow-roasted bear claws whose price is actually dropping thanks to the "what inflation?" report today! Well, we are having that! I cannot wait to see if big boys will crush all those calls by this Friday.

AAPL puts: stopped out yesterday after it solidly broke above 190, again, acted against my initial plan (won't short until at least it reaches 192).

MON puts: stopped out in the morning when it busted through yesterday's high with volume, now eying 128/130 re-entry.

CTRP ER Play: entered a bull put spreads (55/50) for 10 contracts/ea with an initial credit of $650.

don't feel nearly comfortable to take a 50/45 bull put spread, thought about selling May 45 puts, but that felt like a silly play thought with OE so close, the risk is extremely low, we'll see...

In both cases, I decided not to use the straddle play because of sky-high IV...


pcaguy said...

I know this is not technical but here is my observation.
Options expiration is Friday. Any of these momentum stocks such as AAPL, MON, POT, UYM, OIH, and so forth cannot be sold short into expiration.
They all seem to be a better PUTS trade on the Monday following, in my limited experience.
I'm long 45 and short 30 of OIH options for July. If I have the fortitude I will try to hold these positions counting on the Jersey Boys running OIH up to all time highs at the Friday close.
I have a personal problem that may keep me away from the markets on Friday. I would really rather be active Friday so I may have to close out my position Thursday or wait until Monday.

flyingwabbit said...

finally got the aapl, 6 June 190 puts when it broke 190 at $9, covered half at 9.95 and the remaining at 10.85, DT again? well, just your hopeless flyingdonkey as usual!