Vertical Spreads for Aggressive Growth

Discussion in 'Journals' started by Cache Landing, Jan 27, 2006.

  1. what do u think happens to AAPL, back to 62-65ish? I almost sold some bear calls yesterday but thought we had just one more push to the upside, before the selloff.

    Looking at the tape, its getting quite ugly out there.
     
    #311     Apr 7, 2006
  2. Back to 67 first, stalling there for a few days, then continuing down to 64. Then I think 64 is a good place for a bull put.
     
    #312     Apr 7, 2006
  3. On a similar note, I see MRVL pulling back to 56-57ish.

    AMD getting stuck on that 20SMA as usual. A drop below 32 is bad news for them until that 200SMA.
     
    #313     Apr 7, 2006
  4. Today's Action

    STO 4 MRVL MAY 52.5/55 p @ 1.00

    Year to Date P/L

    Account Value: $11,103.50

    YTD Gross P/L: 1,330.00

    YTD Commiss: 226.50

    YTD Net P/L: 1,103.50

    YTD % P/L: 11.0%


    Took the opportunity to open a bullish position in MRVL on the pullback. I'm also keeping a close eye on either PAAS or NEM.

    On a different note, my DNA position isn't in very good shape right now. Earnings are coming out tonight. I intended to hold the position through earnings, so we'll see what happens. I might have to make some serious adjustments/hedges.
     
    #314     Apr 11, 2006
  5. what DNA position you have now ?
     
    #315     Apr 11, 2006
  6. APR 75/80 bull call
     
    #316     Apr 11, 2006
  7. Uh ohh... past experience tells me that a DNA rally just before close is not a good thing for my position.:eek:
     
    #317     Apr 11, 2006
  8. cnms2

    cnms2

    I don't understand your comment. If you have a DNA bull call spread Apr 75/80, doesn't it mean that you max out your profits for any price above $80? Isn't it what you wanted to happen? As the expiration approaches the spread will get closer to the $5 maximum (if the price doesn't drop bellow $80).

    I assume you mean by a bull call spread:
    - bto Apr 75 call
    - sto Apr 80 call
     
    #318     Apr 11, 2006
  9. Your analysis is correct. My comment was based on my experience in which a company that rallies really hard against the market just before an earnings release, drops once the news comes out. I don't know if this is due to overzealous expectations or something else, but it does seem to frequently be the case. Perhaps the buy the hype, sell the news mentality.

    As I write this, DNA is down after hours about $1.50
     
    #319     Apr 11, 2006
  10. cnms2

    cnms2

    I see ...
     
    #320     Apr 11, 2006