11:15pm (EST)
Ford (F, $7.39, up $0.27)
December 6 calls (FLI, $1.85, up $0.20)
Entry Price: $1.25 (5/18/09)
Exit Price: $2.50
Return: 48%
Stop: $1.45
December 7 calls (FLJ, $1.20, up $0.13)
Entry Price: $1.00 (5/18/09)
Exit Price: $1.50-$2.00
Return: 20%
Stop: 75 cents, raise to $1.00
Action: Another new 52-week high for Ford. Nothing else I can add here.
Cisco Systems (CSCO, $21.98, up $0.26)
October 20 calls (CYQJD, $2.55, up $0.10)
Entry Price: $1.50 (6/2/09)
Exit Price: $3.00
Return: 70%
Stop: $2.00
Action: The stock hit a high of $22.40 and the call options traded as high as $2.92 which was a stone’s throw away from our exit target. Tech remains strong and we’ve been in this trade for 2 months now. It is starting to pay dividends and it wouldn’t have been a bad idea to close half the trade up at those levels. That makes it a risk-free trade from here on out.
Bank of America (BAC, $13.97, up $0.45)
November 15 calls (BYOKO, $1.26, up $0.11)
Entry Price: $1.50 (6/12/09)
Exit Price: $2.25
Return: -17%
Stop: If the stock falls below $11, close the position.
Action: Shares broke $14 today and you gotta love the action in BofA this week.
IBM (IBM, $117.86, up $0.60)
August 105 calls (IBMHA, $13.00, up $1.20)
Entry Price: $3.40 (7/14/09)
Exit Price: $12.00 (7/24/09 1/2 the trade was closed)
Return: 253%
Stop: $11.00, raise to $12
August 115 calls (IBMHC, $4.00, up $0.50)
Entry Price: $1.05 (7/16/09)
Exit Price: $2.00 (7/24/09 1/2 the trade was closed, other half sold at $3.25 yesterday)
Return: 245% together
Stop: CLOSED
Action: We were taken out of the 115’s on Wednesday and we have raised the stop on the 105’s call options. Yeah, the 115’s traded as high as $5.13…
Cerner (CERN, $65.57, up $0.44)
August 70 calls (CQNHN, $0.75, down $0.60)
Entry Price: $1.30 (7/27/09)
Exit Price: $2.20
Return: -42%
Stop: Lifted
Action: The calls opened at 25 cents and I said to “play the rebound” meaning we knew the stop was going to get hit and we knew this was an earnings trade. The options have another 3 weeks before they expire.
Microsoft (MSFT, $23.81, up $0.01)
August 23 calls (MSQHQ, $1.07, down $0.06)
Entry Price: $0.78 (7/27/09)
Exit Price: $1.60
Return: 99%
Stop: CLOSED
Action: I’ve been talking all week about this being a “short-term” trade and how we were going to be out by Friday. The exit price was $1.60 and the calls hit a high of $1.59. If you will notice this was a penny shy of $1.60. Now, if you didn’t close the trade then you were greedy. It is important to remember that once an exit target is reached you follow your game plan. I probably should have listed an exit target of $1.56 which is exactly a 100% return but I rounded up.
Visa (V, $67.21, up $0.23)
August 70 calls (VEHHN, $0.85, down $0.30)
Entry Price: $1.60 (7/27/09)
Exit Price: $3.20
Return: -47%
Stop: Lifted
Action: This was the other earnings trade we left open. The calls traded as high as $2.00 today as Visa tried to clear $70 but they faded along with the stock the rest of the day. This was a profitable trade when the calls traded above $1.60. I’ll keep it on the books since I didn’t provide an update at 1:00 pm on the trade but the 80 cent stop was lifted.
Like I said, I don’t do a lot of earnings trades but I couldn’t resist the charts on Visa and Cerner.
Rick@MomentumOptionsTrading.com
Tags: Bank of America, Cisco Systems, Ford, Microsoft, options blog
This entry was posted
on Thursday, July 30th, 2009 at 11:21 PM and is filed under Company Commentary, Earnings, Option Trades.
You can follow any responses to this entry through the RSS 2.0 feed.
You can skip to the end and leave a response. Pinging is currently not allowed.
Get RSS Feed
Trade Updates
11:15pm (EST)
Ford (F, $7.39, up $0.27)
December 6 calls (FLI, $1.85, up $0.20)
Entry Price: $1.25 (5/18/09)
Exit Price: $2.50
Return: 48%
Stop: $1.45
December 7 calls (FLJ, $1.20, up $0.13)
Entry Price: $1.00 (5/18/09)
Exit Price: $1.50-$2.00
Return: 20%
Stop: 75 cents, raise to $1.00
Action: Another new 52-week high for Ford. Nothing else I can add here.
Cisco Systems (CSCO, $21.98, up $0.26)
October 20 calls (CYQJD, $2.55, up $0.10)
Entry Price: $1.50 (6/2/09)
Exit Price: $3.00
Return: 70%
Stop: $2.00
Action: The stock hit a high of $22.40 and the call options traded as high as $2.92 which was a stone’s throw away from our exit target. Tech remains strong and we’ve been in this trade for 2 months now. It is starting to pay dividends and it wouldn’t have been a bad idea to close half the trade up at those levels. That makes it a risk-free trade from here on out.
Bank of America (BAC, $13.97, up $0.45)
November 15 calls (BYOKO, $1.26, up $0.11)
Entry Price: $1.50 (6/12/09)
Exit Price: $2.25
Return: -17%
Stop: If the stock falls below $11, close the position.
Action: Shares broke $14 today and you gotta love the action in BofA this week.
IBM (IBM, $117.86, up $0.60)
August 105 calls (IBMHA, $13.00, up $1.20)
Entry Price: $3.40 (7/14/09)
Exit Price: $12.00 (7/24/09 1/2 the trade was closed)
Return: 253%
Stop: $11.00, raise to $12
August 115 calls (IBMHC, $4.00, up $0.50)
Entry Price: $1.05 (7/16/09)
Exit Price: $2.00 (7/24/09 1/2 the trade was closed, other half sold at $3.25 yesterday)
Return: 245% together
Stop: CLOSED
Action: We were taken out of the 115’s on Wednesday and we have raised the stop on the 105’s call options. Yeah, the 115’s traded as high as $5.13…
Cerner (CERN, $65.57, up $0.44)
August 70 calls (CQNHN, $0.75, down $0.60)
Entry Price: $1.30 (7/27/09)
Exit Price: $2.20
Return: -42%
Stop: Lifted
Action: The calls opened at 25 cents and I said to “play the rebound” meaning we knew the stop was going to get hit and we knew this was an earnings trade. The options have another 3 weeks before they expire.
Microsoft (MSFT, $23.81, up $0.01)
August 23 calls (MSQHQ, $1.07, down $0.06)
Entry Price: $0.78 (7/27/09)
Exit Price: $1.60
Return: 99%
Stop: CLOSED
Action: I’ve been talking all week about this being a “short-term” trade and how we were going to be out by Friday. The exit price was $1.60 and the calls hit a high of $1.59. If you will notice this was a penny shy of $1.60. Now, if you didn’t close the trade then you were greedy. It is important to remember that once an exit target is reached you follow your game plan. I probably should have listed an exit target of $1.56 which is exactly a 100% return but I rounded up.
Visa (V, $67.21, up $0.23)
August 70 calls (VEHHN, $0.85, down $0.30)
Entry Price: $1.60 (7/27/09)
Exit Price: $3.20
Return: -47%
Stop: Lifted
Action: This was the other earnings trade we left open. The calls traded as high as $2.00 today as Visa tried to clear $70 but they faded along with the stock the rest of the day. This was a profitable trade when the calls traded above $1.60. I’ll keep it on the books since I didn’t provide an update at 1:00 pm on the trade but the 80 cent stop was lifted.
Like I said, I don’t do a lot of earnings trades but I couldn’t resist the charts on Visa and Cerner.
Rick@MomentumOptionsTrading.com
Tags: Bank of America, Cisco Systems, Ford, Microsoft, options blog
This entry was posted on Thursday, July 30th, 2009 at 11:21 PM and is filed under Company Commentary, Earnings, Option Trades. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.