Tuesday's Tidbits

Tuesday's Tidbits

9:25am (EST) The market managed to start the week off in positive territory as the Dow added 90 points, or 1.1%, to finish at 8,529. The S&P 500 gained 8 to close at 927 while the Nasdaq advanced 6 points and ended the session at 1,844. It was nice to start on a bullish note but one thing missing in our climb higher is volume. Without volume, it’s going to be harder to break through resistance levels so don’t read into the rally too much. Having said that, some of our positions picked up steam on Monday as both Bank of America (BAC, $13.19, up $0.44) and Ford (F, $5.78, up $0.17) made pretty good moves. The BofA November 15 calls (BYOKO, $1.30, up $0.19) added 17% and are up 30% since last Wednesday. The entry price for the position was $1.50 so it is still down 13% but looking better. Ford rallied to $5.96 and the December 6 calls (FLI, $1.05, up $0.05) and the December 7 calls (FLJ, $0.65, unchanged) look good at current levels. We are still slightly lower from our entry prices but interest is picking up in the stock again. ChangeYou.com (CYOU, $41.96, down $3.56) stayed in the red for much of the day after opening at $46.74. The stock made it to a high of $46.85 before fading. The July 50 calls (CQUGJ, $0.60, down $0.70) look good down here but like I said yesterday, I wasn’t ready to jump back in after the quick gains we made on Friday and Monday’s opening bell. The stock was up in after-hours to $42.25 but if ChangeYou.com falls back below $40 the July 50’s could take another beating. Some of you may have started half positions at these levels because I was getting emails all morning so confirm an uptrend before establishing the other half. Imax (IMAX, $8.28, up $0.09) came off its high of $8.49 but that was too be expected. The key will be if it can hold $8. I went over the stops yesterday for EACH position so make sure you to stick to them. The July 7.50 calls (IMQGU, $0.95, up $0.05) are up 170% from last Thursday’s entry price of 35 cents. A stop of 70 cents locks in a 100% return. If Imax continues its uptrend, raise your stops along the way. Otherwise, close all positions if the stock falls below $8. Rick Rouse Rick@TheOptionInvestor.com]]>

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