Vertical Spreads for Aggressive Growth

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

  1. cnms2

    cnms2

    AMR looks to be in an established downtrend. As you mentioned, I liked it around $28.3. I closed it on Friday before a retracement, and I missed today's re-entry when it gapped down. I think that now AMR is due for another short term upward retracement: this seems not to be a good short entry point.

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1073645>
     
    #451     May 16, 2006
  2. I liked it short but didn't trade it because I saw strong support at $26. Blew right through it today though. Next support at $23-ish.
     
    #452     May 16, 2006
  3. Looks like HPQ is headed north of the recently broken support. I think I'll wait to see if it stops again at 34.
     
    #453     May 16, 2006
  4. cnms2

    cnms2

    Lately I don't seem to have a good grip on HPQ, so I should better keep my opinions about it for myself :).

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1074179>
     
    #454     May 17, 2006
  5. Crucis

    Crucis

    Just checked AMR. It's right at the 20 & 50 day support. RSI is showing a slight uptrend.
     
    #455     May 17, 2006
  6. Today's Action Cont.

    BTC 6 SPX MAY 1275 p @ 3.30
    BTC 6 SPX MAY 1265 p @ 2.85

    Year to Date P/L

    Account Value: $12,919.00

    YTD Gross P/L: 3,315.00

    YTD Commiss: 396.00

    YTD Net P/L: 2,919.00

    YTD % P/L: 29.2%

    The plan was originally to roll down/out on the SPX bull puts, but when the CPI came in so high I got worried that this might be a sustained drop. When the underlying bounced this morning just after the open, I thought we might be seeing some strength. I waited for it to make new lows and bought back the 1275 shorts anticipating that it would continue down.

    Problem was that I only had 2 days til expiry and the longs were still pretty far OTM. The other problem was that I had a meeting to go to, so I set a limit order to sell at just above B/E. I could've made more if I'd have been around, but I can't complain about B/E.

    For any beginners that might follow this, I generally wouldn't leg out like this when the longs are that far OTM (especially on SPX), but today was a pretty easy day to anticipate market movement.
     
    #456     May 17, 2006
  7. cnms2

    cnms2

    Couldn't resist ... :(

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1074839>
     
    #457     May 17, 2006
  8. cnms2

    cnms2

    This is HPQ's short entry chart:

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1074851>
     
    #458     May 17, 2006
  9. cnms2

    cnms2

    Cache Landing,

    I don't intend to hijack your thread. Please let me know if you think I post too much on your thread.
     
    #459     May 17, 2006
  10. Feel free. This thread is here for educational purposes. I like your charts/analysis.
     
    #460     May 17, 2006