Posts tagged “option trade

Bought V May 85 Calls I-T-M. Thinking a soon sell-off…

I love Visa (V) and I bought 1 contract today at $4. This IPO has a higher PE + double the capitilization of Mastercard (MA) so it should surpass MA in price currently at $298! With Visa @ $86 seems very undervalued and at a bargain price now publicly offered in my opinion especially with a bigger better branded name on more credit cards.

I bought another SWN SEP 40 Call @ $6.10 (same price) so now I have two contracts with the price currently hovering around $7.50 a contract. My GTC is at $8.10 even though I want to raise it I’d rather put it in a faster moving stock like Visa.

I’ve got this subconcious feeling looking at some over inflated stock price charts that some big stocks are ready to sell-off by investors taking a breather and dealing with other factors such as their homes falling in price such as First Solar, Bidu, and Google. Yeah, I know major growth stocks with good stories, but my daily and weekly charts seem to indicate engulfing bearish candles and if within reason (week) or so they don’t move up much higher then they should follow the current down trend further down. I would short them, but I’ve been burned way too many times losing money. So until I see a big break in trend or big move I will not listen to my gutt and instead not trade the stocks at all to be safe then sorry.

I’m extremely confident that AAPL, SWN, and V will continue a strong uptrend with of course dips and pull backs in the markets, but will go UP without reason for big reasons that are making the stocks $$$.

My order on V MAY 85 Calls:
5/6/2008 10:45:47 AM (ET):
Symbol: .VEQ
Description: V MAY 85 Call
Stock: V at 86.93
Action: Bought To Open
Quantity: 1 contract(s)
Price: $4.00
Commission: $14.95
Reg Fees: $0.00
Net Amt: $414.95

GTC @ $8 +100% <— Goal time within 3-7 days

Bought AAPL May 175 calls @ 5.45 – high risk earnings trade

Apple Inc. (AAPL) is a stock with a lot of personality. Through earnings it did exactly what it does many times when it gives a low guidance and solid results which is zig-zags up and down. Up 5% then down 5%. All the Apple traders are saying “oh, I’m buying up on the dip!!!”. Is this true? Personally I think Apple might initially fall on thursday morning, but rebound and rebound hard and keep moving up unless the company shows weakness in publicity. I think AAPL buying up a new tech company is great. We definitely need some Steve Job speeches. One blog poster off made a good point, what happened to the iPod and iPhone sales? The reports scream mac computer sales which is extremely positive in a dead computer market, but did the iPods stop selling? Anyway. If AAPL reports good earnings it usually moves up into the upside through into June then with the iPhone 2 annoucement should continue. Yes, are markets are in turmoil right now, but AAPL is selling its products which means people do have money oh and did I mention everyone is getting their refunds back from the IRS. Yes, spending is about to start and the new iPhones timing is great for people that just got back $600-1200 plus their normal refund.

I’m highly confident in this small $500 option trade going through earnings. My goal is to be out Friday. If apple continues to fall I better take my loss ASAP becase then big guys are selling in which they know more then us.

My trade:
4/23/2008 3:51:06 PM (ET):
Description: AAPL MAY 175 Call
Stock: AAPL at 162.48
Action: Bought To Open
Quantity: 1 contract(s)
Price: $5.40
Commission: $14.95
Reg Fees: $0.00
Net Amt: $554.95

Plan to sell at $8-15