Facebook Inc, FB new trade sept/11/2012

Trade update (Sep/22/2012):
Closed this trade for $1.95 for approx. 70% profit
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Our second trade in FB in just a few days. I wanted to do a weekly expiration but thought it's better to give it a few days time.

Trade:
Buy $18 Sept Call - 1.50
Sell $20 Sept Call - 0.35

I got this spread for $1.15. I believe the momentum on FB is to the upside now and if it continues for just a day or two more we make money with this spread. The only way we lose money here is if we go sharply lower right after we get in. I have a stop loss in place if it goes lower tomorrow, otherwise I ride it into next week.

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GM vs FB, and new FB trade Sep/10/2012

Trade update (Sep/22/2012):
Both puts expired worthless giving us 55c for approx. 122% profit
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GM's price today $22 (IPO high price was ~ $40)
FB's price today is $19 (IPO high price ~ $40)
Although the post-IPO results of Facebook have been similar to GM's, the FB debacle is considered horrendous while our president calls General Motors a success story. Related link.


Chartwise GM may look more attractive to the upside, I want to play FB to moderate upside on how it formed a kicker pattern a few days back and has held the previous lows. Although there are no guarantees, but I think it has formed an intermediate low and is trying to come out of oversold conditions. I have stop loss in place in case this goes against.

 










TRADE:
Sell 1 sep/22 $19 put
Buy 1 sep/22 $18 put
(Got a credit of 55c on Sep/5)
 

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Watch for a fakeout in SPX. Time to short again Aug/13/2012?

Watchout for a fake run up followed by a close like this (img below) to capture more pigs. High chances that this occurs just a few days before options expiration. I am looking for tue/wed for a reversal. Looking to get into a put spread going into 1380 for coming weeks.

SPX candle possibility going into tue/wed

VIX showing high levels of complacency?

Last time we saw VIX this low was in mid march after which markets started to wobble a bit and we got a nice correction. RUT and BANK index starting to show some weakness in images below.

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Cover your shorts Aug/02/2012 ?

Markets made a good move to the downside from our alert few days back LINK. This may be a time to cover shorts and take profits or to atleast cover some shorts. I covered a few shorts, mainly indices and went long into tomorrow at close today to hedge myself. These are the positions I will be closing during the day tomorrow or might keep until next week. I do believe there are chances that the markets will fall soon, but it just needs to breathe first. High TRIN reading of 2.19 suggests a possibility of short term bounce too.

SPX daily chart

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Go short July/29/2012 ?

Here's a similar chart as from last week mainly showing RSI resistance, and some possible weakness in coming days again. RSI is again approaching over 60, and I think there are some chances we retrace yet again from here, like we did last time (check old post). I am starting to get SPX spreads, but will initiate more in coming days if we start to curve downwards from this range. If we slow down and create a high base at these levels for atleast 2 days, I may start initiating some bullish positions for the coming weeks.

SPX showing possible RSI resistance

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Go short July/19/2012 ?

Here's a chart showing some possible weakness in coming days. RSI is again approaching over 60, and I think there are good chances we retrace again from here. I am starting to sell SPX spreads, buy VIX spreads and will initiate more short positions if we see any weakness in the markets starting today.

SPX daily chart (mainly RSI)

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Boeing Co, BA trade for Jul/02/2011

The Boeing Company (BA)

Buy 1x (Aug $67.5 put)
Sell 1x (Aug $62.5 put)

Paid: $0.50
Google finance link

Looking to see how the stock behaves in the next few days before we decide to add more or close the position before the earnings.

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SLV trade for June/20/2012

SLV july puts at $0.81

Bear flag breaking the trend

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