Monday, August 23, 2010

UPDATE Trade: BVF long calls... Winner!

BVF has been good to me, but the profit/loss on this thing hasn't done anything since earnings...the stock has flat lined, and I have held this puppy for over 1 month and a half. I realize that this will move on the imminent FDA approval of VRX, however, I want to free up capital for the rapid moves in the Headley Sniper and Grand Slam services that I have signed up for for the next few months.

BVF has not flashed a true sell on the Daily chart, though it has done so arguably on the 4hr chart. Regardless, I want to take profits on this properly and move has stalled up here and it is at dangerous heights, volume has dried up at these it can go crashing down just as well...

Cost basis was now $5.95 per contract (thanks to some profit taking previously)...I sold for $10... anyway total profit was in the neighborhood of $1,200...this was a really great trade...and all the option-able accounts benefited.




Bought 3 CRI Aug 21 2010 35.0 Put @ 8.4

This is one that popped on the scan a few days ago and due to the 4hr chart I thought I was getting in at a good price. Then I checked the market for these puts and there was no open interest. This scared me and I proceeded to try and cancel the orders I had put in...Lucky for me TOS was in a special mood today and it wasn't taking cancellation orders (this type of shenanigans also were present during the May 6th crash by the way)...SO...the orders stayed on and got filled in all but my taxable account...GOOD THING TOO...This is one of those trades where it was almost instantly profitable. The 4 hr chart doesn't really do it justice, but in the beginning of the day this was above my 13 period EMA...this was also scaring me...the volume was light though so I though it was a good short....the liquidity is a concern, but I still think I can turn a profit on these.

Nonetheless. The psychological factor here really upsets me because my taxable account isn't having any fun with this trade. I should not chicken out of trades like this anymore. When I decide to take action I should be satisfied. If anything I should have checked the liquidity previous to entering the orders, but still I would have missed this trade based on that.

One factor is that I had read 2 market forecasts (Big Trends and Noshee?) saying that the bottom may have been put in last week. This skewed my thinking for sure.

Stop is 27.17.

Bought 5 HS Aug 21 2010 20.0 Put @ 4.7

I picked this up in my taxable account today. This was something that popped on my scan on Friday. A short retest outside the bands. This is my favorite setup. I did this only in the taxable account because in this account I had missed the CRI trade in this account due to my phsycological crapping I went for the next best thing which is shorting HS. I noticed Friday that this was not the only health care insurer that had this retest phenomenon, AET, UNH, also exhibited this behavior. So the sector is in trouble. However, my psychological issues right now are that we are long in the tooth with the downtrend and I fear these moves are nearer to their end than to the beginning. No matter, I am trading based on the setups.

Stop is 15.55. 

Bought 4 BVF Oct 16 2010 12.5 Call @ 6.8

This was done accross accounts as a hedge against the net Shorts I am in now (besides the above I am short DCTH and CSTR (taxable account only) I have taken big profits on both positions I am holding those for a while longer).

Back to the BVF trade. This thing popped big time and again showed up as a retest outside the bands on the daily chart. The 4hr chart is a bit weaker, however, still strong. If the market has found a bottom, then this is a decent hedge it is a strong stock in a weak market bucking the trend and has successfully retested and is outside the bands...The 4hr has broken the 13 EMA but regained it. This was a tough trade today and I took it because it was near enough to the retest low in price. I didn't get the best price but not too shabby either.

Stop is 18.47

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