Options2Wealth's  Instablog

I am pleased to welcome to my blog one of the most accomplished and respected personalities in US and North American law enforcement, Commissioner Tom Frazier...Tom was for many years, and, in fact up until quite recently, the Executive Director of Major Cities Chiefs, an organization of police commissioners from the largest metropolitan areas of North America, including Canada and Mexico...Tom and I have been friends for a number of years and I am also very indebted to him for playing a very important role on the board of advisors of one of my companies...

Welcome Tom...good to know that you have decided to follow my shenanigans here in cyberspace...I really need to clean up my act now for sure...LOL!

kp

Disclosure: I am long LDK, SPWR, TSL, WFR.

Today (May 21, 2013), SPWR looked pretty strong in pre-market trading and as soon as the markets opened, the stock galloped right out of the gates and in no time was up more than $1 in early trading, going as high as $23.72, before losing steam...

However, I was not fooled by SPWR's fake show of strength and I quickly dumped my remaining 300 June $15 contracts at an average price of $8.35. less brokerage commissions...And, as stated in my post from this morning, yesterday I sold 400 contracts of these same June $15 CALLS at an average price of $7.738

Therefore, over the course of yesterday and today, I exited out of my 700 contracts of SPWR June $15 CALLS and these sales netted total cash of a little over $500K...

Here are the screen shots of the sales, both from yesterday and today:

Again, as per my plan, which was telegraphed here first, I decided to use my new cash hoard to buy WFR CALLS...Now that I have generated substantial cash over the course of the last 4+ months, I will focus more on cash preservation...therefore, on the WFR CALLS, I decided to play somewhat safe by buying January 2014 option contracts with strike prices of $6.00 and $7.00.

I bought 1700 contracts of WFR's January 2014 $6.00 strike price at an average cost per option of $1.834 + commissions and 1000 contracts of its January 2014 $7.00 strike price at an average cost of $1.39 + commissions.

BTW, almost all of the trades shown in the screen shots above (both SPWR and WFR options), can be attributed to my buying and selling...LOL!

Since it is now way past my bedtime and I still need to be up bright and early before the markets open, I will call it a night and hit the sack...later, I will update the Excel spreadsheet with the most recent trades in the portfolio, and post it here.

kp

DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you. On the other hand, if the move(s) result in a profit for you, I am open to discussing a split. ;-)

Disclosure: I am long LDK, SPWR, TSL, WFR.

In my May 15th post here, I had stated that when SPWR prints $23, I will start to exit out of my June $15 CALLS...therefore, yesterday, once SPWR printed $23, that was my signal to start selling my June $15 CALL options...since the size of my holding is considerable, exiting out of my position is somewhat tricky...Yesterday, I sold 400 of my 700 June $15 CALL contracts at an average price of $7.738...I am now left with 300 contracts which I will dispose off today...So far in pre-market today, I can see SPWR looking to gap open, yet again...perfect time to exit...As I have stated before, I only plan to sell my June options and will hold on to my 100 contracts of the January 2014, $12 CALLS. Today, this stock may go as high as 23.90, but I will be absolutely flabbergasted if the stock prints $24 intraday...

Selling my SPWR June $15 CALLS does not mean that I am now not as bullish about the company...I just expect the stock to take a breather after an amazing run and while it is doing that, I will take my cash and deploy it somewhere else...once SPWR is ready to make another run, and this time it will be towards $30, I will be ready to jump right back in...

I plan to use the cash generated from these sales to purchase additional WFR CALLS...will give a more detailed update later today...it is going to be a very busy day...

kp

DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you. On the other hand, if the move(s) result in a profit for you, I am open to discussing a split. ;-)

Disclosure: I am long LDK, SPWR, TSL, WFR.