My bullish outlook on the day got smacked down pretty quick with some terrible economic data.  The fact that both the market & account ended flat on the day means to me that we’re ready to explode past 13,000 next week.  Si?

DP Sells:

• Managed to sell (AMAT: 19.57 -0.36%) & (CTRP: 57.3899 -0.16%) May puts near the day-lows, closing out the earnings straddle & strangle, respectively.  Even so, neither one ended in profits, although CTRP came close. 
  • In retrospect, the AMAT earnings play was about as ill advised as the CSCO one.  Neither can exactly be described as highly volatile.
• (ALEX: 49.44 -0.36%) calls were stopped out for a tiny profit.
• (NVDA: 24.41 +2.65%) & (PALM: 5.80 -1.69%) puts expired worthless, but the overall earnings plays each ended in ~10% profit.

DP Buys:

• Placed mostly bullish limit orders, half of which got filled:  calls in (CMED: 39.46 +3.27%), (DVN: 121.38 +2.57%), (JWN: 38.44 +3.08%), (LUFK: 80.59 +1.79%).  All small positions, where my max. allowable loss equals the full position.
• Straddles in (CAKE: 22.37 -0.27%) & (VMW: 69.60 -3.44%), as detailed in the previous post.
• Strangle in (SJM: 51.69 -0.44%) as it hovers around resistance @ $52.  Looking for it to fail & break back down, but with this crazy bullishness around, I wanted to go with the ’safer’ play.

Ready to tackle Expiration Friday with mostly bullish ideas…

• bullish reversals based on stoch’s/candlesticks:  (AIG: 39.34 -0.58%), (CMED: 39.46 +3.27%), (MER: 48.85 -2.24%)
• (DVN: 121.38 +2.57%)-uptrend from January lows still holds
• ascending triangle in (LDK: 37.22 +2.99%)
• (LUFK: 80.59 +1.79%)-needs to hold $78

…as well as a few bearish ones..

• (JBLU: 4.88 0.00%)-downtrend from February highs
• (FTD: 14.39 -0.14%)-resistance @ $14.50
• (SJM: 51.69 -0.44%)-resistance @ $52

…while having it both ways… 

• (VMW: 69.60 -3.44%) - h/t Ragin’ - might go with a strangle at this key $72 level. 
• Liking ‘lol’s idea from the comments of RC’s post:  straddle up on (CAKE: 22.37 -0.27%) while waiting for a breakout/down from the triangle.

It is the end of the week, so I’ll probably stick with small positions regardless of direction.

So nevermind that bit about the market going down.  Up, up, & away we go!

While I had some limit orders in for calls in (ILMN: 78.28 +0.26%), (LFT: 20.45 +0.10%), (LUFK: 80.59 +1.79%), (SJM: 51.69 -0.44%) (none of which filled), the main emphasis was on selling/dumping May options before they expired. 

After yesterday’s near-breakeven, booked a definite net loss on the account for the first time since the 1st of the month…but this was overshadowed by the massive gains (unrealized, yet) in (SIGM: 23.59 +2.12%) and measured gains in (ALEX: 49.44 -0.36%), (AVB: 104.19 -1.00%), (STP: 46.10 -2.16%).

DP Sells:

• (BX: 20.11 -2.09%) calls & (YGE: 24.88 -1.70%) puts from their respective straddles based on initial earnings reaction.  Some benevolent soul later bought my (CTRP: 57.3899 -0.16%) calls as well for pennies on the dollar.  Better than worthless, though.
  • (BX: 20.11 -2.09%) later decided to turn positive and shred the bears.  Sold the puts just before they became worthless, booking a decent loss on the straddle.
  • (YGE: 24.88 -1.70%) did the opposite, stopping out the calls in the first hour.  At least this straddle finished in the black, although not by much.
  • (Safe to say I was terrible at picking ‘direction’ today.  Both faked me out.)
• (MELI: 54.70 +0.39%) & (ZOLT: 30.98 +16.86%) puts stopped out on the unrelenting rally, closing the positions, and chalking up 2 more for the losing side in earnings plays.
• (KWK: 39.20 +0.13%) wasn’t playing ball with the rally-monkey…calls hit their trailing stop on a mid-day wave of selling.  Another loss, similar in size to the other 3.
• The rally did help a couple positions that were essentially worthless in the morning:  (BBBY: 33.78 -2.34%) 32.50 calls and (NVDA: 24.41 +2.65%) 22.50 calls (from its earnings strangle).  Sold both at the close, BBBY for 100% profit (unfortunately, it was just a small position).
  • The NVDA strangle is technically not yet completely closed…the 20. puts are still open, although it’s likely that they will expire worthless.  Still, the calls sold have already guaranteed a profit on the position. 

All-in-all a decent ‘housecleaning’ day.  Got rid of almost all remaining May options with the exception of 2 worthless ones (NVDA 20. puts, PALM 5. puts) and 2 ITM ones that will be sold tomorrow (AMAT 20. puts, CTRP 60. puts).  Need those 2 to drop just a little more tomorrow so that their respective starddles/strangles can end in profits.

Since ABC moved LOST to Thursday nights, Wednesday night TV has become a barren wasteland of boring reality/results shows.  Fortunately for us less braindead types, we have to gift of movies to entertain.

Watched Before The Devil Knows You’re Dead tonight.  Directed by Sidney Lumet, who has got to be around 100, and starring the great Philip Seymour Hoffman, Albert Finney, Ethan Hawke, and the supremely gorgeous Marisa Tomei (I’m sure she’s ‘talented’ as well), it was one of the best reviewed movies of 2007.  Came out on DVD/Bluray a month ago and I finally got around to it.

Verdict:  Supremely entertaining, in an emotional/brutal/bleak/50-car-pileup sort of way.  High tension throughout; there is not a single moment that drags.  To reveal any of the plot (other than what you may see in the trailer) would be criminal.  As Roger Ebert wrote:  “[it] is such a superb crime melodrama that I almost want to leave it at that.  To just stop writing right now and advise you to go out and see it as soon as you can.”

[Go.  Now!] 

And in keeping with iBC rules, here are a few trades that, market-conditions willing, I will be looking to enter tomorrow:

• (LFT: 20.45 +0.10%) breakout above $20
• (LUFK: 80.59 +1.79%) attempt to hold breakout above $78
• watching ascending triangles in (ILMN: 78.28 +0.26%), (LDK: 37.22 +2.99%)
• will look to bolster this sparse-looking list in the morning.

Today’s stupid rally made me feel like I was “missing out” on the bounties of mother market.  I felt like I should buying everything in sight, with both hands, yet I couldn’t/didn’t/wouldn’t due to a combination of work/time/wherewithal. 

But it’s probably for the better.  The end-of-day kick in the bulls’ balls combined with the fishy CPI numbers will probably send this market back down.  Lest we forget, when not trading at $124, oil is still making new highs.

DP Buys:

• Earnings plays enter their last big day with picks in China - (CTRP: 57.3899 -0.16%), (YGE: 24.88 -1.70%) - and in financials - (BX: 20.11 -2.09%).  CTRP down 10% AH.  Holla!
• The one bullish play of the day were calls in (AVB: 104.19 -1.00%), and just a small position at that.  Betting on a breakout from the ascending triangle (above $105).

DP Sells:

• (AMAT: 19.57 -0.36%) & (MELI: 54.70 +0.39%) calls from the respective straddles.  Much to my chagrin, neither stock finished anywhere near its lows.
• Solar madness stopped out (LDK: 37.22 +2.99%) puts and closed the earnings strangle for a nice big loss.
• (MER: 48.85 -2.24%) puts stopped out for max. acceptable loss (0/2 with MER this month, both times hitting the m.a.l.).  (DVN: 121.38 +2.57%) calls stopped out for half that on the late day dip.
• Most of the day’s losses were made up by the (LUFK: 80.59 +1.79%) calls.  These also hit a trailing stop late in the day, but still booked a 50% profit. 
  • LUFK is still (tentatively) holding the ~$80 support level, so a show of strength tomorrow could be an opportunity to re-enter this trade.

Banked a goodly amount of coin on the long side today, despite the overall market spending most of the day in the red.  Credit must go to our resident expert on ‘MadStocks‘ for the initial tips on the stocks that made up the majority of my winners today.

DP Sells:

• Based on their respective earnings, got rid of (CSIQ: 44.90 +2.98%) puts and (LDK: 37.22 +2.99%) & (ZOLT: 30.98 +16.86%) calls at the open, leaving the opposite legs to ride to profit.
• Closed out (CSCO: 26.51 +0.04%) earnings strangle by selling the remaining puts.  Booked a loss on the position…only the second earnings strangle (out 11) this month to not result in profit.  (There are a couple more, still open, that will most likely also end in a loss.)
• Closed out 2 huge winning trades, both 200% (overall position gain): 
  • (CSIQ: 44.90 +2.98%), up 30% intra-day, started dropping towards the end, stopping out the calls and thus closing the strangle.
  • (OMG: 47.85 +1.29%) puts also stopped out a few minutes before close.  Been riding these since last week, to the tune of 450%+ gains…

DP Buys:

• Couple more earnings straddles:  (AMAT: 19.57 -0.36%) & (MELI: 54.70 +0.39%).   I was late in buying the MELI options, and thus missed out on the majority of the 7% pre-earnings move.  May be a good thing, in retrospect, as their earnings appear to have “shit the shower” and the stock is down 10% after-hours.
• Getting back into a few more ‘traditional’ positions (as earnings wind down), with straight calls in:
  • (DVN: 121.38 +2.57%)-(uptrend)
  • (LUFK: 80.59 +1.79%)-(breakout above $78)
  • (SIGM: 23.59 +2.12%)-(holding support @ $20)
  • (STP: 46.10 -2.16%)-(CSIQ sympathy buying, still holding above $40-41)

What a great day!  Basking in the glory of the following:

• (CSIQ: 44.90 +2.98%) up 30%!
• (STP: 46.10 -2.16%) up ~10%, in sympathy.
• (SIGM: 23.59 +2.12%) holding support @ $20 & up 6% in the process.
• (LUFK: 80.59 +1.79%) breaking out above $78 to the tune of +5%.
• (MELI: 54.70 +0.39%) up 7%, although I was late to the party with the straddle.

I was thinking of an appropriate video to post, but the only one I could think of was the one from World Cup 2006…the official anthem (”Celebrate the Day”) with the accompanying video showing some of the greatest moments from World Cup history.

Obviously the video is 100% soccer, so the JakeGints of the world should not click it (might cause permanent damage).  It is also in German, so if you find that grating to your ears, click here for the English version (not as good IMO).

Oil has FALLEN to $124!  It is now officially cheap!  The recession is over!  Economic recovery, here we come!  Buy buy buy buy!  Thank you.

DP Buys:

• Earnings strangles in (CSIQ: 44.90 +2.98%), (LDK: 37.22 +2.99%), (ZOLT: 30.98 +16.86%).  LDK reported this afternoon…and the prognosis is not so positive for the other solars:  the whole industry is struggling with the soaring cost of polysilicon, which is somewhat crucial for the whole solar deal.
• Limit orders for calls in (ALEX: 49.44 -0.36%) & (KWK: 39.20 +0.13%) were filled during the day.  Managed to buy KWK right at the day’s high…

DP Sells:

• (AIG: 39.34 -0.58%) puts were stopped out on the morning spike.  Booked an overall profit in the earnings straddle, but it could’ve been quite a bit higher as AIG soon reversed for a 5% drop…
• (CHK: 58.78 +2.94%) looking toppy & showing some weakness…sold remaining calls (1st half was sold last week) to book the best percentage gain of the month so far (167%).  Wasn’t the highest net gain due to the small initial position size.
• Puts in (AMLN: 32.15 +4.96%) & (AMZN: 76.46 +0.45%) stopped out for a small loss & a small gain, respectively.

Spent a portion of the weekend doing Fly-like activities on the PS3:  knocking/running over old ladies, punching off moustaches, calling people fucktards, acting like/being the king of the world, investing in Mother Russia, going for ‘hot coffee’ with the ladies, etc.  You could say I was living the digital high life in the best edition of GTA yet.  The critics were right (only the 5th game to receive a perfect 10 from GameSpot, joining the N64 Zelda, Chrono Cross, Soul Calibur, and Tony Hawk 3)!

In the ‘real world’, it’s once again expiration week, which usually brings a bit more volatility and general tomfoolery to the markets.  It also makes earnings straddles/strangles all the much more exciting (related post from the PG).

Earnings season is unfortunately winding down so the pickings may be a bit slim…  Looking to play the following:

• Mon. PM/Tue. AM:  (CSIQ: 44.90 +2.98%), (ZOLT: 30.98 +16.86%)
• Tue.  PM/Wed. AM:  (AMAT: 19.57 -0.36%), (MELI: 54.70 +0.39%), (SNE: 49.50 -2.04%)
• Wed. PM/Thu. AM:  (BX: 20.11 -2.09%), (CTRP: 57.3899 -0.16%), (YGE: 24.88 -1.70%)
• Thu. PM/Fri. AM:  (JWN: 38.44 +3.08%)

Any of your favorites out there?  Put it in the comments, if you think it could be coin-bankable.

Another busy day working and banking some coin on the side.  Limit, (trailing) stop, and conditional orders are definitely the best friend of someone who cannot keep an eye on the markets 24/7.

No new positions for me today, mostly because I didn’t spend my usual time last night looking through my watchlist and/or running a couple screens at finviz.com.

DP Sells:

• Following the strategy outlined in the previous post, sold (PCLN: 135.49 -2.21%) & (TRLG: 22.08 -3.79%) strangles (puts in the morning, calls later in the day on trailing stops).  TRLG treated me especially well, finishing with 100% profit in the trade.  In celebration, I wore a pair of their jeans to work.
• (AIG: 39.34 -0.58%) reported spectacularly bad numbers, so I sold the calls from the straddle at the open.  The puts are still ‘alive’.
• (CELG: 61.09 +3.04%) puts hit their trailing stop, thus closing out the earnings straddle from Wednesday for a small profit.