2008 trading

[optradersc]

OK, SOLF closed at $37.64 +$0.69 with my 4 SOLF Jan. 35 calls now at $4.30.
FDX closed at $84.10 -$3.21 with my 10 FDX Jan. 85 puts now at $2.40.
My total account isn't too bad as it currently stands at $8,490.01. Again, the key here is to allow the account to grow one day at a time. I have set up stop losses for both trades with FDX put stops in at $1.00 and SOLF call stops in at $2.75.

Reasons for buying FDX puts and SOLF calls:
FDX: Fed Ex has clearly been poor and I made some money on FDX puts back in November. Here it is again. After some research, it's clear that FDX broke support at $90, but I also noticed a potential flag formation at $85 and this bear flag comes with an $80 target. I will give FDX 2 weeks to complete the target as the flag formation only took a few days. If the target is hit, my put options should give me a nice return, and I'm willing to risk $1 for a potential $2.50 back.

SOLF: Solarfun Power holdings has been on a tear in the past 1-2 months only. I should have bought it on the breakout back at $17, but volume was too light then. SOLF then went into another 2-3 week correction in December before breaking higher in the past 2 weeks. Well, the chart shows a bull flag with a target of about $42-$43. The bull flag took about a week, so 2 weeks time to reach its target should be plenty of time. Volume to the upside has been very strong, especially when compared to the downside over the past few days. Even better is the fact that short interest stands at 3.26M shares shorted, and that's an increase of 400% since last April. Ouch to those short sellers. There are only 4 analyst with all rating this stock a hold. Any upgrade will bring in new buyers that will only help my cause. The upside pressure is so much greater that even I noticed SOLF couldn't finish the day lower.

Well too much details, hope that helped. Here's another stock I like: HOLX (Hologics, Inc.)

[Fredledingue]

I think it's possible to make 75K out of 5000. Just be prepared to have nothing at all at the end of the year (2008) as well in case it turns bad.

Good luck

[Novice Investing]

optradersc:

When you say you like, are you going to buy the calls for HOLX? And if so, what is your typical expiration date? One month or more?

[optradersc]

I like HOLX, and I am currently reviewing HOLX calls for a possible trade. Here's the catch. I'm not going to buy calls with the market still in a correction. I'll need to see strong volume on rallies before I put on a longer trade like HOLX. I would be buying HOLX June 75 calls at about $6.00. I'd give HOLX a +25-35% appreciation target, which is managable for this stock. Should HOLX increase by that much, I would be looking for those calls to reach $15-$20 for a nice return. With options, I always use about a -50% stop loss, so I would also set a stop loss at $3.00. But remember, all this would only happen for me at the first sign of a market turn around, and that market rally may only last 1-2 months, but that gives me reason to enter, and should also help HOLX appreciate enough to wither the next wave of correction. Hope that helped.

[optradersc]

It seems, I still have more than 50% in cash, so I'm going to lower that if I want to reach $75,000 by year's end. After some review here, I'm going to look for calls in ESLR (solar stock) with months of expiration, and I'm going to buy a short term position on SVU puts. I will update after entering positions. I also like LEAP puts for the short term with a $30 target and may possible get a small position in that stock too.

[optradersc]

Okay, I'm done for the day, and maybe for the week. Bought 7 SVU Jan. 35 puts at $1.80 for total cost $1,275. I also bought 7 LEAP Jan. 40 puts at $2.75 for $1,940. With both trades taking about $3,215 out of my buying power, I'm left to watch and learn.

edition: Oh, and actual cash is now down to $1,155.12. Ouch, if I lose out on all 4 trades, things could get bad.

[optradersc]

Rough trading today for bulls and bears.
I was stopped out of SOLF at $2.80. Closed 4 SOLF calls at $2.80 for $1,105 (a loss of $430 including commission).
I also decided to close my 10 FDX Jan. 85 puts at $3.00 for $2,985 (a nice gain of $1,320). I'd love to hold FDX puts longer, but the profits were there and the gain was about 82%, so it went.

I still have my SVU and LEAP puts opened. SVU puts are bidding at $1.65 ($1155) and LEAP puts are bidding at $3.30 ($2310). With my cash holdings back up to $5,245.31 and my options worth $3,465, I'm getting closer to my first initial target of $10,000. I am up so far though with 2 winners and 1 loser. Be back tomorrow to see if those speculated SVU puts are paying off.

[optradersc]

Ouch, another completed hedged position. LEAP calls were taken out at $1.45 for a big loss, but that loss was hedged by the gains from SVU. Those SVU Jan. 35 puts are now at $4.00 as SVU has dropped a hefty -9.6% this morning. I also took a momentum position in AMZN. Technology (including internet stocks) have been beating down. Heck I liked AMZN 4 days ago at $95, but getting in at $89 was a beauty. I did buy options instead of the action stock though. I opted for 12 AMZN Jan. 90 calls this morning at $2.70 right off the open.

Sold 7 LEAP Jan. 40 puts at $1.45 for $1,000.05 with a loss of ($939.90).
Bought 12 AMZN Jan. 90 calls at $2.70 for ($3,248). I always set a stop loss on my options, and these AMZN calls include a stop loss at $1.40.
I also decided that I can't hold onto my SVU puts any longer.....the profit is so big, that it has to be captured for tax purposes .
Sold 7 SVU Jan. 35 puts at $5.80 for $4,045.05 with a gain of $2,770.10.

So as it stands, I have about $3,780 in AMZN calls, and a cash position of $7,042.40. My account total now stands at $10,822.41 with 3 winners and 2 losers so far. It seems I am one step closer to my goal, but quite a long ways off. Hope everyone is also having a great trading day.