Tuesday, May 01, 2007

Back With A Bang!

Today was a great full day of trading multiple contracts on different entities. First, I noticed the lack luster strength in the DOW this morning, and watched oil closely. One thing I notice with oil is that there are tremendous swings. It will go up and up and push higher than you ever thought oil would go, and then rapidly descend during the afternoon. I have heard of many fortunes being created through the trading of oil and it's counterparts.

Research in Motion (RIMM) was also being stalked by me today as the Upgrade this morning can cause a significant GAP UP, and any weakness will make it fall like a knife, as it did when it hit resistance twice today..

I originally decided to roll with the RIMM - $125 MAY Put option, but it wasn't responding enough to the price fluctuation, because it was so far out of the money and the delta was only a -18.0 vs -35.4 with the $130 MAY Put option. I bought the $130 Put option after realizing this and thus, created a Vertical Spread which I exited 1 leg at the end of the day for a 20%+ gain. Amatuer, I know, but I caught it, and was very profitable.

I love buying RIMM Puts, I've seen them double in 1 day in my portfolio. Who else in the world can show you how to double your money in 1 day? I don't know of very many sources. Hm, Las Vegas? Go for broke!

I also cashed in on my Chesapeak Energy Calls in which I bought nearly 4 months ago, mentioned here Long Term Oil Calls. I bought the JULY $30 CALLS @ $1.85 and today I sold them for $4.6, a 140+% gain in 109 Trading Days.

More to Come!


Anonymous said...

Congrats on your trades! I too have started trading options earlier this year due to inspiration from your blog and have been doing pretty well. I can't say the same for futures however. But I don't mind options as long as I'm making money it's all good!

Anonymous said...

Oh and welcome back!