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  • Will We Hold It Wednesday – 1,333 or Bust (as usual) 1 comment
    Jul 20, 2011 9:30 AM | about stocks: AAPL, BSC, CMG, DIA, DUG, EU, FAS, GLW, IBM, IWM, LEH, QQQ, BBRY, RYAAY, SPY, SSO, SUNEQ
     

    Here we go again!  

    We blew right though our expected bullish levels of Dow 12,500, S&P 1,317, Nasdaq 2,775 and Russell 825 but failed to make 8,300 on the NYSE so, as usual, our biggest and most difficult to manipulate index is holding us back – flashing a warning sign while the other indices scream for us to "party on."  Fortunately, as I mentioned in yesterday’s morning post, we had already gone aggressively bullish with the SPY Aug $128/131 bull call spread at $1.83, selling the Sept $120 puts for $1.57 and that net .26 spread is already net $1.86 – up 615% since I posted the trade idea at 12:53 in Monday’s Member Chat.  

    It’s good to have a few aggressive trades like this to take advantage of market bounces.  Before that we had taken the SSO Aug $51/53 bull call spread at $1.05, selling the Sept $44 puts for $1.07 for a net .02 credit at 10:46 in Member Chat (the SPY play was for late-comers who missed out on SSO).  The Aug $51/53 spread finished the day yesterday at  $1.35 but the real win comes from the short $44 puts, which fell to .70 so the .02 net credit is now a .65 net credit for .67 total profit, up 3,350% in less than 48 hours.  See, options are fun!  

    The only other trade ideas from Monday were a long-term bullish play on RIMM (selling 2013 $22.50 puts for $4.20) a long futures play on the Russell Futures (/TF) off the 810 line (now 835) and I reiterated our bearish spread on CMG as I felt they would disappoint on earnings (they did).  Yesterday we picked up a long-term longs on GLW, RYAAY and WFR, half covered our FAS longs (iffy so far), took a poke at shorting the DIA that worked for a quick 10%, shorted oil with a DUG spread (futures too scary) and picked up another short spread on CMG – selling 3 Aug $330 calls for $16 ($4,800) against 2 long Dec $360 calls at $18 ($3,600) for a net $1,200 credit – those should be nice winners this morning!  

    In the afternoon we flipped more bearish and picked up 10 SPY weekly $133 puts at $1.15 ($1,150 of our virtual dollars) for our$25,000 Portfolio and those are probably going to hurt this morning as the Dollar has been jammed
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    Posted in Uncategorized | 14 Comments »


    Tags: AAPLbondsBSCCMGdebtDIADUGEUFASGLWGreeceIBMIWMLEHQQQ,RIMMRYAAYSPYSSOWFR


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    Stocks: AAPL, BSC, CMG, DIA, DUG, EU, FAS, GLW, IBM, IWM, LEH, QQQ, BBRY, RYAAY, SPY, SSO, SUNEQ
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  • Advill
    , contributor
    Comments (2326) | Send Message
     
    Your comments are always readable but your selection of cartoons is the cherry on the cake!!!

     

    Best regards to you!.
    20 Jul 2011, 12:42 PM Reply Like
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