Wednesday, March 31, 2010

New Positions


In a post a while back that I can't seem to track down I mentioned that I was interested in PFE as it traded closer to 17 and it 200 day moving average. PFE is currently trading right on its 200 day moving average and it seems to be acting as support.

I am buying 5 17 Jun '10 calls @ .80 for a total of $400.

Stop: 16.75 ($130)

Entry: 17.23

Target: 19 ($610)

Risk vs Reward: about 1:5

I would be interested in selling the 16 puts if this name pulled back further.


I am also interested in COP. I am looking at buying a ratio spread in August. More specifically I like the idea of selling the 50 put and buy 2 of the 52.50 calls. I can put one of these trades on for 1.12.

Stop: Break of 200 day currently at 48.26. Risk (335)

Entry: 51 ish

Target: 56-58 ($700-$1000) Reward

Risk vs Reward: about 1:2 to 1:3


  1. I currently still have my SPY 111 puts for April on as a hedge. Now that we are in April and the market still looks strong I think I am going to go and sell some April 114 puts against long 111 for a break even trade and go and maybe buy some May puts. Not sure what strike yet.

  2. Forgot to mention. I am going to wait til the end of this week. I want to see if any selling can find support. I would love to see a test down to the 1150 on the SPX which would allow me to do the trade for better than break even.

  3. I had mentioned above that I would be interested in selling puts in this name if the stock continued to pull back. Although i was stoped out of my calls. I still like the name. So today I sold the 5 Jan '11 15 puts for $1 putting my basis at $14 if I were to get exercised. I think this is an attractive price that I would not mind owning if that is how it plays out.

  4. I also sold 5 $6 puts on DRYS for $1 with Dec '10 expiry. And bought 5 $121 puts on SPY for 3.73 with a stop at the 52 week high of 121.57. A post will follow sometime today. A little to busy but I have the pictures and analysis to post.

  5. Is there an exit strategy should the stock rise? Why Jan 2011? You've never held anything that long. That's a maximum possible $1/$14 = 7.14% return for 9 months if you held until expiration, that hardly seems like the type of risk/reward that fits your trading style. You're tying up $7000 for a max reward of $500 9 months from now.