Summary - Wednesday, 2008.V.7.by DPeezy on May 7th, 2008 at 6:56 pm |
While The Fly was out moving markets with SKF lots, I was quickly getting out of bullish positions, booking available profits. Not counting those, I ended the day pretty much flat, with AMZN puts balancing out any losing positions.
DP Buys:
- Throwing some darts with earnings straddles in (CELG: 51.04 -8.46%), (CROX: 0.94 -9.62%), (HANS: 24.07 -1.63%), (OMG: 12.60 -11.70%). CROX & HANS are looking good, with 10%+ moves after-hours. The other 2 report tomorrow morning.
- Limit order for puts in (AMLN: 6.07 -1.14%) filled just before the closing bell.
DP Sells:
- (STP: 5.39 -39.64%) calls stopped out for a decent gain, despite the positive news.
- Remaining calls from (EOG: 64.97 -15.93%) straddle stopped out to protect a (very) minor profit.
- Booked a loss on (VIP: 6.99 -7.17%) puts as it was experiencing whatever the opposite of the ‘homo hammer of death’ may be. Did I miss some news on this?
- The big winner was (DVN: 59.50 -13.23%)…half of those calls were sold yesterday, and I sold the other half this morning for essentially the same price. Booked 100% profit on the position, my best ‘win’ in 2 months.
I’m still within my comfort limit on the STP calls. We’ll see what happens tomorrow.
I sold out of some ACI calls I got the other day, and I’m glad I took the profit as ACI closed down from the intraday high. I’ll be watching for a possible reentry point on the ACI calls.
May 7th, 2008 at 7:24 pmUntil STP falls below $40-41, I remain bullish on it.
But I personally don’t have the consitution to see a winning (options) position fall into the red, especially after it’s up more than 25-30%. In those cases, I’ll set a stop above breakeven, so that I can walk away with guaranteed profits.
We’ll see what it does tomorrow…should it hold today’s lows, I will consider getting back in with some deep(er) ITM calls and hold for a bit.
May 8th, 2008 at 2:28 amDpeezy,
can you do me a favor today? can you post your trades on HANS and CROX in an educational manner so I can better understand the straddles. Describing, if you bought 10 put option contracts and 10 call option contracts at these prices, and sold here, you would have made $___.
if you don’t mind, that is. I’m still struggling to completely understand the concept.
May 8th, 2008 at 9:30 amI’m trying to put together a post for ya Gunners, but it’s been a busy day and I’m getting swamped at my ‘other’ job.
I have closed both the CROX & HANS trades already, but I will retroactively detail the transactions involved…
May 8th, 2008 at 1:12 pmno problem. it can wait. thanks
May 8th, 2008 at 1:41 pm