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]]>
