Monday, April 13, 2009
Trade Entered
Today, my portfolio did well. The JAVA naked puts gained about 15% thanks to Mr. time decay, although JAVA was down 4%. My GDX naked puts finally turned to profit, although I feel time decay has not done its job well on that yet. My $70 investment on C calls did great so far. I already had a feeling C has a big chance for short squeeze as the short interest on that stock has been great (You can check the short interest on stocks here). Today, I was looking for other bullish opportunities. AAPL is on my radar as the analysts want it more than $135 after the earnings report. However, this stock has been up due to so much interest in it! I have also seen before that the options are inflated before the earnings report, so I am waiting for a down day to probably buy some May options only if I can find a good deal. While I was checking APPL in google finance, I saw this news about MAR. Then decided to pick up 2 contracts of MAR $25 May call options. I put a bid at 20 cents and left :) I thought it won't go through but it did! So, here is another $40 investment on the rumor that the stock may be purchased by another party for more than $30. If that happens, the options will be worth $5/contract. So, I thought I do it and let it go :) If it drops to 10 cents, I may pick up another two.
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