I first highlighted POT here, and I went in with a bullish put spread (180/175) for $1.10 credit. Today I bot it back for $0.23/spread, yielding me nice 22% profit. Profitable trading, OptionPundit
For the OP readers who are watching semiconductor index $SOX, one of the few bright spots in today’s market, $SOX is struggling to cross $490 area. It briefly penetrated $490 but still trading below that. Once $490 is crossed comfortably, it will serve as support area and I may open…
I don’t go too much into the technical analysis except the very obvious ones like support, resistance and fibs. Recall just before the Feb expiration I talked about Google finding support at around 460 area (at the time of writing it was 456), see to to believe yourself here since…
Based on the tip from downtrader’s blog, I decided to play “bullish” direction on Target (TGT). There were two choices; either I could have gone long by buying straight call or via spreads. I chose later and opened a credit spread (Feb 60/57.5 bull put spread for $0.50/$2.00 per spread….
Credit spreads- Love it or hate it! Congratulations to all those who witnessed HOLX’s conference call and saw the huge jump in the stock price as the call was going on. Since it was in my list, but I didn’t play earning, I decided to participate as soon as the…
Here is an update on closure of my credit spread for PCP which I mentioned here. I opened that trade for a credit $1.25 and with Margin $3.75. The logic for the trade was, directional as it was breaking out of the resistance zone. I bought back the spread for $0.40 (rationale…
When looking for benefiting from theta in combination to speculating on a stock’s direction, you may want to hedge your predictions and that’s where vertical spreads are very useful. These can be done for a debit or credit. Once one understands how vertical spread works, one will notice what a…
While my call on Nov 2 on PD was right one as the stock is around $93 as of this writing and I had opened the BCS at 100/105 for 1.80 credit. I would have materialized most by now. However, the volatility in the stock was what that made this…
Phelps Dodge. After roughly 6th attempt to cross 52wks high $102-103, PD slipped back. Based on my opinion it is forming a double repo. If true, the imminent fall is there. Just to recap, few days back PD had announced earnings as well where it had missed the expectation. The…
As mentioned y’day, CMI dipped to as low as $124.1 today (till 10:50am US EST). I didn’t get a fill to buyback at $0.70/contract, so decided to bid a bit higher at purchased at $0.85/contract. That results in $0.25/$3.90 in 1 night holding period i.e. 6.4% profit.