Divergences

Discussion in 'Journals' started by romik, Jul 2, 2006.

  1. romik

    romik

    Pretty clear now that we have seen a bottom in DELL, holding till $32 now. T started showing early signs of the presence of a 3BRD in MACD, IPG short though closed trade, 10 calls have added in value, ABI is neither here nor there at the moment, futures looking OK at the moment also, mini Silver position was up 0.760 today.
     
    #191     Oct 16, 2006
  2. romik

    romik

    Wasn't possible to add to position, so holding 30% here, daily chart started to turn bullish IMHO.
     
    #192     Oct 19, 2006
  3. romik

    romik

    Quote from romik:

    SHORT - IPG (NYSE) Interpublic Grp of Cos

    Hedge: Buy 75 Oct $10.00 Calls @ 0.25

    Current: $9.83
    Average down: ~$10.17
    PT1: $9.10
    PT2: $8.00
    PT3: N/A
    Stop: ~$10.30
    BRD in HIST on a daily chart attached, but daily chart is in an uptrend with a possible double bottom in the mid $7 range. Possible reward outweighs risk here. I would say that this could be a risky trade when looking on the daily chart.

    http://finance.yahoo.com/q?s=IPG
    --------------------------------------------------------------------------------



    Position covered $10.32

    -3.2% adjusted after averaging @ $10.17

    Oct 10 calls remain open.

    --------------------------------------------------------------------------------

    75 Oct 2006 10 calls sold @ $0.50 for 100% profit. Due to this outcome the overall position's PnL has been adjusted to:

    +0.53%
     
    #193     Oct 20, 2006
  4. romik

    romik

    Up to date PnL:

    LU -6.8%
    SI +7.34%
    AMGN +6.79% (+8.84% no scaling out)
    AAPL +12.18% (+22.21% no scaling out)
    CPB +2.65%
    AIT +1.42%
    EBAY +12.39%
    CAL +6.67%
    YI +11.95%
    IPG +0.53% (-3.2% on 50k short, +100% on 75 Oct 06 10 calls)
     
    #194     Oct 20, 2006
  5. 4re

    4re

    Good job with your option hedge.
     
    #195     Oct 20, 2006
  6. romik

    romik

    Thanks, seemed to work out alright. I ignored the weekly chart on IPG which is bullish and went against the bigger wave by making a trade decision of a daily chart. Whether it was luck or not, I just don't know, but will apply this same tactics on all other positions.
     
    #196     Oct 20, 2006
  7. romik

    romik

    LONG - SLR (NYSE) Solectron Corp

    Hedge: Buy 200 Jan 2007 $2.50 Puts @ $0.10


    Current: $3.18
    Average down: ~$2.90
    PT1: $3.70
    PT2: $4.30
    PT3: $6.50
    Stop: ~$2.50

    BLD in MACD/RSI on the weekly chart.

    http://finance.yahoo.com/q?s=SLR

    [​IMG]
     
    #197     Oct 23, 2006
  8. 4re

    4re

    I am thinking that is a very smart hedge looking at the 5 year chart. If it does break through support it should freefall for a bit.

    Gary
     
    #198     Oct 23, 2006
  9. romik

    romik

    Alright bud :), does look like a bear flag there doesn't it? It just might be a triple BLD, by that time if 2.81 support breaks the puts should start coming alive the closer price gets to $2.50 strike, if that does develop into a triple BLD on a weekly I will reevaluate the situation and will either continue holding in light of increased options value or dump it all. I've got no idea how Jan 07 puts might be priced when/if price breaks $2.50, but current $2.50 calls are around $0.65.
     
    #199     Oct 23, 2006
  10. 4re

    4re

    Yeah by the looks of it I think you'll be happy with the hedge. Good luck on it.
     
    #200     Oct 23, 2006