Bought Southwestern Energy MAR 55 PUT – short play
My second $1000 trade was on SWN. I made my decision off the daily and 233 minute chart moving down and the 3 and 5 minute charts white candles hitting the upper bollinger bands as an entry point for the stock to continue pulling back from its 5 day run up. Although my trade is currently down 1.45 from my 1.75 purchase if I’m correct and SWN pushes down a bit further before hitting its big trend I should sell out at my planned GTC order of $2.50. That is my goal at least. If I’m wrong about the direction Monday I should sell out as soon as possible, but I think SWN has a higher likely probably chance of pulling back more since it’s close on Friday was below the high close of the week on Thursday. It created a long wick (bad, becuase that’s more bullish with about 10 white candles during the smaller minute charts) created a T like wick. Since it did close below even with my option price moving down with the negative pessimistic news in the markets it should help sell off some more from the past days decent news.
My order details:
Friday @ 1:23 PM
Description: SWN MAR 55 Put
Stock: SWN at 59.49
Action: Bought To Open
Quantity: 5 contract(s)
Reg Fees: $0.00
Net Amt: $889.95
Another trade I’m looking at is NTRI earnings on Tuesday FEB 19th. If NTRI moves up into the close before earnings I will likely do a $100-200 trade going through earnings playing CALLS. This stock has NO reason to push down further because even with less growth because of diet drugs, it’s growth in general should still increase. It’s growth to earnings ratio is extremely low. Personally I think if NTRI gives any type of surprise people that dumped the stock might check it out again if it proves even some type of growth and limited losses.
This entry was posted on February 16, 2008 by Paul. It was filed under 2008 SWN MAR PUT, earnings trade, ntri earnings, Nutri Systems Inc, real option trade, southwestern energy, swn and was tagged with MAR put, ntri earnings trade, nutri systems, real options trade, Southwestern Energy Company, swn.
This could work as the stochs are pointing down. Still out of the money though….
Market closed Monday BTW.
February 17, 2008 at 12:22 am
Don’t buy calls on NTRI. Market is pointing DOWN and so are the stochs on this stock. Forget fundamentals on such short term trades.
February 17, 2008 at 12:24 am
Dang moomin!!! You gotta let me know this stuff ahead of time. The market is closed on monday. shit. hahahaha.
As for a CALL on NTRI I wouldn’t place my buy trade for the call until just about to close. It would be a big risk but as much as NTRI is down with any type of surprise should reflect a quick increase in stock price. This would be a 1 day trade. If I wasn’t sold out by opening bell then the stock kept moving down. I’ll have to watch the charts and look for rumors on the internet to make my decision. but thanks for lookin out.
February 17, 2008 at 12:43 am
And as for Out of the money trades – I’ve factored them in. Since I can only trade $1000 depending on the cost of the stock vs. option price and other factors. For Puts I’m more likely to use out of the money, where as calls I’ll just buy less contracts closer to $1000.
February 17, 2008 at 12:45 am