Today I am on the hunt to sell call spreads in the following names: ISRG, PCLN, GOOG. All are stocks that have in the last month or so Made new 52 week highs. I am constructing call spreads that basically make the bet that these names will not rally to take out their 52 week highs by Feb '10 expiry.
ISRG --> Looking to sell the 340/350 Feb '10 for $1.35
GOOG --> Looking to sell the 550/560 Feb '10 for $1.50
PCLN --> Looking to sell the 220/230 Feb '10 for $1.75
I have finally been able to make the switch from bull mode to bear mode. I think that most of February will be down. I will start looking for longs sometime in February. I will be looking at the market leading stocks to regain their 50 day moving average as a sign that the market may be turning.
And as we get closer to Feb expiration I may look for put spreads to sell to turn these call spreads into iron Condors. I will update later as to what I actually put on and at what price.
No comments:
Post a Comment