Option trading for a newbie

Discussion in 'Journals' started by Ben74, Oct 17, 2008.

  1. Ben74

    Ben74

    Closed those 8 QCOM calls at $1.35 for a loss of ($1,029.90). That lowers my gain to $9,153.90.

    I bought 10 MYGN Feb. 75 calls at $2.60. Looking for MYGN to rally tomorrow....I might be gambling a bit here as my risk is a bit high, but I'll take my chances. Any confirmation that this trade will fly?

    Ben
     
    #91     Feb 2, 2009
  2. NoDoji

    NoDoji

    Ben, here is my input (always fun when there's nothing you can do now):p

    Bad News: The president and the general counsel (insiders) just sold off good chunks of shares last week in the 74-75 price range. Frequently this indicates a pending earnings miss or, at best, lukewarm earnings. Not always, but about 80% of the time.

    Bad News: The price pulled back quite a bit today from highs, but it did reach a 7-year high on Friday, so it will take a pretty hot earnings report to push it higher.

    Good News: This one has a huge short interest, so any gap up should get pushed higher by shorts covering.
     
    #92     Feb 2, 2009
  3. NoDoji

    NoDoji

    Ben, looks like the good news takes the day :)

    Now don't get too greedy and give up your profits; I've seen gaps fill pretty quick in the morning!
     
    #93     Feb 3, 2009
  4. Ben74

    Ben74

    Looks like the good news is taking it on today for MYGN. I did close my calls at $7.40. With that buy price at $2.60, you got it, I made a killing. My gain on this trade is $4,785.00.

    I still have PCLN calls for now, but my closed trades are showing gains of $13,938.90. Hopefully, no one was on the wrong side of MYGN lol...

    Ben
     
    #94     Feb 3, 2009
  5. Ben74

    Ben74

    For today, I've decided on DLB calls first. I bought 5 DLB Feb 25 calls at $2.15 for ($1,089.95). I also bought 5 CNQR Feb. 25 calls at $1.95 for a cost of ($989.95). I'm using about $2,000 so it shouldn't be much of a loss as my gains over $13,000 should cover that.

    I can't believe those PCLN calls have come back from the ground. I thought those were losers for good, but they are trying to give me back my money.

    Ben
     
    #95     Feb 4, 2009
  6. Ben74

    Ben74

    Well, a bittersweet day for me. I was able to get out of DLB at $5.20 but closed CNQR at $0.30. My gain on DLB was $1,495.10 and the loss on CNQR was ($854.90). Those PCLN calls are making money now lol. Overall, My total close gains are now at $14,579.10.

    My advice is when you first fail, try again. Ben
     
    #96     Feb 5, 2009
  7. CJMan

    CJMan

    Very entertaining journal Ben, keep it up.

    :)
     
    #97     Feb 5, 2009
  8. NoDoji

    NoDoji

    Ben, it's such a joy to see you grow your account so quickly! Keep your risk management firm and you will do fine.
     
    #98     Feb 6, 2009
  9. Ben74

    Ben74

    Thanks, not sure if I posted this, but I bought 10 ENER Feb. 25 calls at $2.20 yesterday for ($2,215). This might be a bit higher on the risk side, but I think I have enough gains to risk this amount.

    Ben
     
    #99     Feb 6, 2009
  10. Ben74

    Ben74

    Alright, I'm back to all cash after this morning. Looking good. I closed 10 ENER at 1.75 for a loss of ($480). I also closed those 8 PCLN calls I bought at $2.45. I closed them for $5.15 and my gains are $2,310.10.

    My account is now at $28,409.20. My gains are $16,409.20. That's right, I'm feeling good this year. I'm still a newbie, but I think I'm learning a few things.

    Ben
     
    #100     Feb 9, 2009