MyHappyTrading.com's  Instablog

We had another super week!  The market was so strong that it held its altitude on Friday, even with MSFT missing its earnings estimates.  Here are the closed trades for the week:

Pretty much 100% GR$$N again!  We mostly opened the trades on Monday and took our profits throughout the week as the market ramped higher.  We protected ourselves from SOHU's volatility and stopped out on Tuesday with a small loss; but, the re-entry on Wednesday helped us make almost everything back on Thursday with a +21% gain.  We protected ourselves again before the steep drop in SOHU on Thursday (SOHU dropped from Thursday's high of $67 to Friday's low of $61!).  SOHU reports on Monday morning before market open.

July 24, 2009
12:34 | HappyTrading JOYG ($38.35) Sold to Close JQYHC Aug 37 calls, at $3.00 +30%
11:46 | HappyTrading WYNN ($47.20) Sold to Close UWYHG Aug 43 calls, at $6.00 +67%

July 23, 2009
11:59 | HappyTrading JOYG ($39.77) Sold to Close JQYHC Aug 37 calls, at $4.00 +74%
09:49 | HappyTrading EDU ($68.00) Sold to Close EDUHM Aug 65 calls, at $4.60 +64%
09:08 | HappyTrading SOHU ($65.55) Sold to Close TKZHM Aug 65 calls, at $4.50 +3%
06:46 | HappyTrading SOHU ($67.19) Sold to Close TKZHM Aug 65 calls, at $5.30 +21%

July 22, 2009
09:37 | HappyTrading EDU ($67.60) Sold to Close EDUHM Aug 65 calls, at $4.30 +54%

July 21, 2009
09:57 | HappyTrading SOHU ($62.98) Sold to Close TKZHM Aug 65 calls, at $2.90 -17%
09:01 | HappyTrading NFLX ($44.15) Sold to Close QNQHV Aug 43 calls, at $3.60 +13%
08:02 | HappyTrading FSLR ($156.60) Sold to Close HJQHK Aug 155 calls, at $12.50 +39%
06:53 | HappyTrading FSLR ($156.00) Sold to Close HJQHK Aug 155 calls, at $12.00 +33%

In the Trading Room, we also traded higher premium trades on ISRG and BIDU earnings.  On Monday 7/20, I said:

July 20, 2009 9:09 AM
BIDU/AMZN
both breaking out....

BIDU
could see $400 if reports well.

July 20, 2009 9:15 AM
ISRG
sailing higher... could see $180-$200 after earnings...

I actually traded BIDU a couple of times this week, as it was volatile.  On Monday I bought the Aug 350 calls at $9.6 and got out in a few hours at $14.5, a quick +51% and almost $5/contract gain!  I kept small position 'til Tuesday and stopped it out at $10.5, still a +9% gain. 

BIDU took a big drop and went down to almost $320 on Wednesday.  On Thursday, BIDU was strong again, ahead of its earnings.  I jumped back in on the same Aug 350 calls at $9, and locked in some quick profits at $11:
 

I kept a small position and was debating about play BIDU earnings at all.  The market seemed ready to take some profits and MSFT did not particularly good ahead of its earnings (see my comments on Thursday).  I actually tried to close the small position just before the close, but, my order did not go through.  It turned out that BIDU's earnings was so strong that it charged higher on Friday and went above $360!  Since I'm on a vacation mode, I was on in front of my computer all day and did not close the trade when BIDU went above $360.  I was still able to take my profits at $20.1 for a +123% gain, or $11.1/contract.

The ISRG trade was even BIGGER!  We started focusing on this on Monday, as I commented in the Trading Room:
July 20, 2009 7:09 AM
ISRG
looking strong above $160...

Other members got their trades earlier in the week.  But, since I was busy playing BIDU, I only got into ISRG just before the earnings.  I bought the Aug 180 calls at $6.2 in the morning on Wednesday:
 

As ISRG went above $200 on Thursday, I cashed these out at $24 and $25, for gains of +287% and +303%, or almost $17.8/contract and $18.8/contract respectively.  ISRG was so strong that it just kept going up.  Those 180 calls closed went above $43 on Friday!! 

I do think ISRG is a bit high now and may need to take a breather.  BIDU still has a lot of room to go up if the market stays strong.  If BIDU charges higher, we might see GOOG doing some catching up.  Just keep your ears out for MSFT/YHOO deal news/rumors.

Hope you're having a great weekend!  Now, I have to go entertain my guests!  The usual weekly Market Forecast will be postponed until Monday.

HappyTrading! ™