LDK acted pretty much how I thought it would today. It fell and closed out about 3.8% lower from yesterdays close I bought and sold the stock several times including premarket today. Overall did very well with about +100 in trading the stock after accounting for the stock price falling to 40.36 at the close.(cost basis as a result moved down from 41 to 40.497) L 1 @ 42.67 + 1.67 scalp S @ 44.25 L 43.82 + .47 I ended with 2 of the LDK stock I bought back some of the LDK 35 Dec calls at the following prices 2 7.40 +.38 2 7.0 +.78 1 6.9 + .88 and near the close 2 @ 7.4 +.38 +318 so far for the trade This leaves me 4 short of the LDK calls and 2 long of LDK stock as a hedge. Feeling very good about this trade and going into tomorrow with it.
Today was one of those days were just about everything went my way. I called my swings correctly, my scalps and my daytrades. no complaints (expect for maybe IBs inability to correctly give a P/L. as you can see in the blotter it does not show the true profit but based on yesterdays close). +467 for the day +1326 for the week +1326 for the month
Today was not like yesterday....LOL I had to be gone part of the day a couple of times and both of which would have made a difference in my trading. I sold some more CTX and bought some back only to sell some more. I missed my exit point by 5 cents ( when i was gone) and so I was unable to move the exit to get out at break even. As a result I end the day with open CTX of -266 LDK was a big mover today and I closed out the stock that I was holding as a hedge thinking I would be able to buy back at a lower price only to see LDK make a huge move higher. I faded the move upwards by shorting more calls but when it came back my way I didnt get filled on buying them back as I was looking for too much. I did though buy some stock (400) at an average of 43.24 to hedge against 8 calls. This leaves me with an open loss of -2469 and a hedge of +1056 with the stock. open -1666 +248 for the day +1574 for the week +1574 for the month
Got hit pretty hard with LDK gap up today. Was planning on closing out the open posistion today regardless as I am busy through the Christmas season. Had no idea yesterday when I planned on closing out with what would have been about a $500 net loss for the LDK trade turned into a 3500 loss. never allow a winner turn into a loser and thats what I did. i still have 400 shares of LDK and 4 Dec calls that are deep in the money so I will look to clear out of that if the bid on the calls goes below the stock price and if not I will just wait until exercised. -3582 for the day/week -2008 for the month
no trades today. Did watch LDK for a while. Still have NO idea why anyone would buy that dog. My options are fully hedged and deep in the money so I guess I should be glad of the greater fool theory. LDK reminds me of the internet stocks of 1998. No value and no profit but who cares about 400+ PE when IF they start to make some real money they will only be 150 PE.
I'd still buy LDK.. I rode it all the way from $27 with Dec. call options and made 600% return.. With earnings and audit report due soon, and virtually no resistence until $7x, I think another $10 by next week is totally possible.. Many say it's still underpriced, especially compared to other solars. LDK did sign many huge contracts recently. As for me, I'm in again for LDK, more than ever.
Hey Kupa, I wish you the best with it. From what I can tell it has about a 400 PE and needs a LOT more BIG orders to bring it under 100 PE. That of course is assuming the AR comes out clean and there are no other issues. You also have to assume the energy bill includes solar, oil stays high, silicon stays available, no other major players enter the market (low barriers to entry), the Chinese management doesn't blow up (low experience), the class action lawsuits don't drag the company, and the Chinese Yuan doesn't move larger than expected against the dollar/euro. I am as of this post net long as I have covered calls until the end of next week. it just seems to me that if you take the word 'solar' out of the company it loses its sex appeal pretty quick based on the numbers. Best of trading to you and happy holidays
It appears that taking the small profit was the correct thing to do with the WM EFPs. WM lowered the dividend which would have resulted in a loss