Seeking Alpha
  • Ocean Man
    Sold CMI July 92.50 calls for a 9% gain intra-day. $4.50 ----> $4.90. Stock went from 95.30 to 96.10.
    7/2/12
    Reply (14)
    • FortSumter: What was the impetus for that particular trade? Would love to know what you were "seeing" if you dont mind.
      7/2/12
    • Ocean Man: I liked the stock to go higher when it went under 90 last week. I bought 87.50 calls and rode them up over $1,000 per on Friday as the stock
      7/2/12
    • Ocean Man: cruised up to 97. I wanted to stay long, but I didn't want $1,000 of downside each, so I wanted to roll into a higher strike. I decided to
      7/2/12
    • Ocean Man: wait to see what the weekend brought, then got back in after it dropped 2% today to 95. But then I decided to take a small gain when I
      7/2/12
    • Ocean Man: decided to trim some risk ahead of what might be a wild Thursday and Friday due to Europe and jobs numbers.
      7/2/12
    • FortSumter: Thanks. Sometimes you seem to make calls "out of the blue" and I don't necessarily see what your seeing at that point in time.
      7/3/12
    • Ocean Man: Happy to discuss, although sometimes it is just a gut feel.
      7/3/12
    • Ocean Man: And of course those calls shoot up another 70% today.....
      7/3/12
    • FortSumter: You seem to buy ITM calls/puts most of the time. Is this a risk mgmt strategy? I buy OTM for higher potential gains. Doesn't always work.
      7/3/12
    • Ocean Man: Always ITM. Way less decay, and plenty of upside, just not quick jackpots. Something like 80% of OTM expire worthless because you can lose
      7/4/12
    • Ocean Man: when you get the direction right, but the move is small. I don't like 100% losses and I don't need 100% gains, 20% is a big deal.
      7/4/12
    • FortSumter: What you say makes logical sense except for the lack of greed part. haha. As I've mentioned, I've been b&h for 30 years and now making
      7/5/12
    • FortSumter: change to swing/trend over the last 6 months. Setting up personal rules is hard. Learned the hard way about stops. Now need ot set up profit
      7/5/12
    • FortSumter: expectations reasonably. Love being on stock talks but probably need to dial back the ticker watch. Kind of like a watched pot never boils.
      7/5/12