Markets haven't been moving much in any one direction much the last week. That combined with no new good trade candidates has made for some slow trading. But that's fine by me as I have been busy getting a contract finalized on our new house :-), and helping start a new non-profit organization (not related to stock trading). Waiting to get a signed copy back in my hands, but it looks like we have a brand-new 3br/3ba house :-)!! Huge answer to prayer with the baby on the way, and our apartment lease coming due. More details to follow as things progress ...
Potential Trades
RIMM Jun 45P/60C ~12.00/contract
- Typically I put in separate orders for the put and call legs of a long strangle. The problem I see with that on this stock is that it gaps a lot. That is the one downside to separate legs with triggers based on stock price ... you can get burned if the stock gaps significantly. So, I'm going to try something new by submitting an order for the full strangle to execute at the market 15 minutes after market open. The 15 minute delay is to try and avoid the crazy first 15 minutes of trading that can throw off option premiums.
- Typically I put in separate orders for the put and call legs of a long strangle. The problem I see with that on this stock is that it gaps a lot. That is the one downside to separate legs with triggers based on stock price ... you can get burned if the stock gaps significantly. So, I'm going to try something new by submitting an order for the full strangle to execute at the market 15 minutes after market open. The 15 minute delay is to try and avoid the crazy first 15 minutes of trading that can throw off option premiums.
Updates
MS Apr 15P/20C - Seems to be bumping up against resistance at $19.58. It broke through yesterday, but then pulled back to close below. Today it closed above that line, but only marginally on lower volume. I'm putting in a trigger to dump the Apr 20 calls if the stock falls below $19.05, which is below today's low and the 100-day moving average that it broke above today. It showed a little strength after-market tonight, but we'll see.
OXY and FWLT - Both of these stocks have yet to make a decisive move. They are both May expiration, so there's still plenty of time.
OXY and FWLT - Both of these stocks have yet to make a decisive move. They are both May expiration, so there's still plenty of time.
2 comments:
I think RIMM will close above 56 today. Why do you think it is a good time to put order now? Is it because of November resistance? Maybe a good time to get PUT, but I personally will wait longer if I were to trade RIMM. I believe the same for MS.
@ Anonymous - Thanks for your input. You are correct on your assessment of the RIMM play. I am looking at the early November resistance that was also a support line back in October. The thought is that it will either break through and continue a nice move on the upside, or fail and have a decent downward move back to support (about 50.00 and then 45.00)
For MS it is a trade that I have already had open for a while now. Right now I am just making some possible adjustment, though pre-market it looks like MS will break through resistance in which case I will continue to hold the full strangle.
Post a Comment