12:30pm (EST) USEC (USU, $6.30, up $0.15) was profiled at $5.84 Tuesday and I’m starting to warm up to the play. The August 7.50 calls (USUHU, $0.52, up $0.02) were added to our Watch List at 41 cents and obviously had a good day yesterday as they are 33% higher. I like entry points up to 55 cents. I have been profiling a lot of call option trades after a few put plays here and there because of the recent rally and I told you it would all come down to earnings a few weeks ago. We are back at the top of the trading ranges and it amazes me how quickly the talking heads can change their minds. Just last week it was gloom and doom and the head and shoulders cliche. Instead of focusing on the junk, I stayed focus on earnings and the trading range we were stuck in. I mapped everything out so if you are new to the blog, do yourself a favor and go back and read. Folks, to be an option trader you have to do homework. And like I said before, the more you follow me or our mentoring program the better off you will be. Remember, we all have to do something when we retire…we can’t play golf and lives of our retirements without having some excitement, right? Well, if you ain’t excited by this week’s action in the market then go hit the links… Anyway, by Friday we either break towards a new bull run or we trade back a little and hold the current trading range. I don’t think new lows are around the corner but you just never know with the market. One last note, Fairchild Semiconductor (FCS, $8.43, down $0.26) has come off its low of $8.14. The August 10 calls (FCSHB, $0.17, down $0.18) are now 50% off so I like them up to 20 cents. There is a lot of risk with this trade so don’t bet the farm and only do so if you have had a good week. We are approaching halftime for the market so I’m gonna go grab some lunch and get ready for the afternoon session. I’ll be back later tonight with a wrap. Watch what IBM (IBM, $108.41, up $1.19) does…I have a good “gut” feeling that some of the call options you may have left open AFTER taking profits could do well. Another way to play IBM would be to “roll” your profits into a little of the August 115 calls (IBMHC, $1.05, up $0.30). $110 is going to be the hurdle where there is obvious resistance from looking at the chart so if IBM can’t break resistance these calls could fall back. However, if IBM can “Shake and Bake” the bulls will be running again on Friday as well as the August 115’s.]]>
