May 29, 2007 – Quiet post holiday

Coming back from a long summer weekend has seemed to keep the Hedge fund guys on the cape. Not much going on.

My AM observations:
Well coming back from a long summer weekend has seemed to keep the Hedge fund guys on the cape. Not much going on.
I put on a second unit of a 17.5p Jul/Aug Palm Calendar, and I am stalking a 3rd unit. They are announcing a new phone on May 30. I like this 6:1 reward to risk ratio for a 40 day holding period. the July options have about a 5% higher Vol than the Aug. I would like to get some of the 15p calendars on for downside protection.
JADE is working nicely. trending upward. Very Nice!
AIG is also playing out to the downside. Very Nice!
AVY is slightly down. Very Nice!
CIEN and EK are sideways. VERY NICE!
QQQQ are up. Very Nice
SPF is even. Not so good.
PALM is up slightly. Very Nice
Well of course anything can happen, and we have a heavy data week coming up. I am pleased with the portfolio at this time. I may still look for good calendar candidates. BBBY is interesting to me. I have not gotten filled @ .22 for jul/aug 40p. That is a pretty good sign for another longer term BBBY sideways trade I have through RedOption. But right now I am sitting tight. My positions will do better with sideways or bearish action.
AVY is my least confident position, however it has not violated any upward resistence. In fact, it follow the downward trendline. I will feel much better when it drops below it’s double bottoming low of 63.18.
some selling came into the market. As per my plan I started selling some EK. I was filled immediately @ .45. It is a nice double after commissions.
AVY and AIG have sagged nicely with the rest of the mkt. AVY has much resistence @ 64.30. The easiest path for this stock to take is down. but we will see.
I was just filled on 1 unit of 15p Jul/Aug Calendar @ .16. I have been waiting for 3 days for this one. My .15 bid did not get filled, so I backed it up with another unit at the .16. I was not filled on it yet. My goal with doing this double calendar is to protect, and widen my profit zone for tomorrow’s new product announcement. Risk is still well within my parameters for this trade. In fact, I can still place 2 more units of the 17.5p. and 3 more of the 15p. Palm is trading down, it is working ok.
I just finished a walk with Izzy, and have almost finished Reminiscences of a Stock Operator. I highly suggest that as a read.
Of course this is my journal, and is not intended as trading advice for anyone else to trade on.

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