Friday, October 12, 2007

Overexposed on OCT 07 calls...maybe. Risk = Reward

Am I too overexposed on OCT 07 calls? We'll see, I bought another yesterday and have an order in for two more BBWJW calls as they are at half the value I had bought my previous ones. Right now I'm losing my tail on these OCT calls, but we'll see how today fares. I bought 1 ACH call yesterday, ITM, shortterm, to try to get a quick score. I bought OCT 70 call for 6.20, and will sell roday. Premarket has ACH at 77.80, so perhaps I'll get a quick $200 on what I call 'a very stupid trade.' I didn't even research, I went on gut instinct, and normally when I do this I get burned. So why did I buy? I'm sick of seeing these Chinese stocks go up and me not partake. So I got greedy. They go up one day, then down the next day, then up the next day...We'll see if it pays off. Below are a list of the calls I currently have, expiring next friday.

.BBWJW Strike price of 17.50 3 contracts at $1.40 a contract (I have an order for 2 more at $.50, maybe I can break even on this. Shorts still have three days to cover, with the biggest movement being on Tues and Wed).

.INTQE Strike price of 25 5 contracts bought at $1.15 a contract. (Should have sold these yesterday when I could have got $1.35 out of them. My target price was $1.50, I'm not sure I'll see it.

.ACHJN Strike price of 70 1 contract bought at $6.20 yesterday, will sell today for 8 or better.

Other general thoughts that weren't acted upon... selling GE, I had a hunch that GE would miss, and eventhough they were right on it wasn't good enough for the street. I had a limit yesterday to sell 25 shares at 42.50, now premarket has GE at 40.90. I'm disappointed in myself.....on a sidenote, I was going to buy GE OCT 40 puts for .14-.16 cents...that's what they were going for yesterday. Could have made a pretty penny on that.....CRDN is close to another buy, I wish I had more money. I may sell a call to get into more CRDN.....Buying another EMC call may be a good idea, April 08 or Jan 09 calls look promising. Remember, ITM, we want to own EMC stock and get the most movement for our investment.....

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