Couldn't Save My Pants

Oh man was I kicking myself today for that GMCR trade. Just a little recap, I bought the May $95 call for 2.02 in the last few minutes of yesterday's trading session. I based my trade on low put/call ratio and did not take the time to fully review the stock. I know next to nothing about Green Mountain Coffee Roasters and in after hours trading the stock plummeted, and I mean plummeted (down about 10%).
Apparently what happened was GMCR released earnings after the market closed. I am ashamed that I entered a trade during earnings season and didn't at least check the earnings calendar first. Today that May $95 call I bought for 2.02 was trading at .15. Lost $187 (93%) overnight. Needless to say this was a HUGE hit to my trading account as I am investing will a small amount a capital. As stated in my post yesterday, I was planning on selling my GMCR call at market open. After seeing the amount the option lost it's pointless to sell now. I might as well hold on till expiration to possibly catch a price spike.

IMAX released better then expected earnings and a breakthrough quarter (Recording almost as much revenue in Q1 2010 then in ALL of 2009). After being up over a dollar in pre-market, IMAX sold off at open dropping down to 18.50. Trended back up throughout the day before closing at 19.72.
Although I didn't see a price explosion for a quick profit like I had hoped, I am fine holding my options until the market realizes the potential IMAX has. If you listened to the conference call you would understand the enormous growth potential for IMAX in this and the coming years. Will look to purchase a far out option in IMAX to hold through till the end of the year.

Keep an eye on FLS as it reversed mid channel (as I had suggested it might) and is currently trending towards the top of the channel.
GLW broke though support line, I'm not a fan of this stock anymore.
CRUS exploded out of its channel and is up 29% since I recommended it.

Because of my GMCR experience today, I've come up with a new rule to test out for my trading plan. If I know nothing about the stock that I want to invest in, I need to spend at least 10 minutes researching it before I can place the trade. Some of you may think that 10 minutes is nothing as many investors research companies for days or weeks before investing. Because I day trade, getting in and out of trades quickly is of utmost importance. 10 minutes is plenty of time for me to hit up my most viewed websites, poll some investor sentiment, and make a conscious informed decision. I will post updates as I apply this new rule to my trading.

Current Positions

I complied this table of information on the positions I currently own:

Asset	Description	Enter Price	Delta	Gamma	Theta	% to Dbl
IMAX	June 22.50 Call	.97	.359	.09	-.016	13.31%
LVS	May 26 Call	1.32	.453	.097	-.034	11.59%
GLW	June 21 Call	.57	.369	.167	-.008	7.70%
USO	May 40 Call	1.12	.514	.143	-.024	5.45%

Percent to Double is the percentage amount the underlying stock needs to move for the option to double in price.
I didn't include GMCR due to the fact that I won't make any money on it and SIRI because of its penny stock status. Also I forgot to mention in my earlier post that IMAX releases earnings tomorrow before market open. Could dramatically impact the stock price.

Daily Update

Needless to say I got stopped out on DWA. People trade the EPS instead of the incredibly positive forward looking statements. Stock's trade around earnings based on their EPS hit or miss. Here are some charts of the trades I entered today. The Pink lines represent my entry points, click charts to enlarge.

IMAX bought 2 June 22.50 Calls @ .97 as IMAX hit the LOD and started climbing back up. (Currently up .25 in AH)

LVS bought May 26 Call @ 1.32 when I noticed the support around 24.55 forming. I don't like this trade and will probably get out early tomorrow for break-even.

Bought GLW once I saw it bounced off the support of its trend.

Here's a Daily chart of GLW to give you a big picture of the ascending triangle trend.

Got in on USO again today. Came back above support at market open and continued a slow uptrend. Watch for a stronger uptrend or a retrace back to the support. Would like to see some more volume on the upside.

The final trade I made was in the last few minutes of the session. I jumped on GMCR due to the ridiculously low put/call ratio. Clear example on my part of "Pack Mentality" hahaha. Currently GMCR is down 12.91 (-14.85%) in after hours. Going to try and get out of this one with my pants still on tomorrow morning.

Daily Update

The Market got beat up today. FLS bounced off of the 119.40 level as I had posted about yesterday. Unfortunately I got in too late and got stopped out around 1pm EDT. Had you bought the May 115 Puts you would be up about 68%. If you haven't entered this trade yet I would wait until it hits the support level because we could see a reversal in the middle of the channel.

USO is setting up VERY nicely. Sitting directly on its resistance level, watch for a bounce or a breakthrough. (Currently in after hours we broke through to the downside)

Tried to enter a long position in IMAX after it bounced twice off of 20.16 but got stopped out when it broke through to the downside.

Here are some snippets from DreamWorks Animation's Q1 Conference call:

How to Train Your Dragon started slow but is finishing strong. Today IMAX has generated 12% of Dragons box office revenue but only controlled 5% of locations (GO IMAX!).
Walmart has promotional campaign for Dragon. Announced Dragon will become DreamWorks next movie franchise with a Sequel in 2013 as well as a TV series? (Did I hear that right?)
Shrek Forever After is one of the most highly anticipated movies of 2010. Satisfying and Happy conclusion. Shrek musical in Chicago.
MegaMind also has potential to become a franchise as well
Considering TV series based on Monsters Vs. Aliens.
Holiday specials on TV this year: Scared Shrekless, Kung Fu Panda Holiday Special.
Quarterly Revenue 162 million, Net income 22 million, 24 cents per share.

Q/A session:
Release Dragon into Home Video: 4th Quarter of this year.
Over last 5 years, performance of DWA movies has been 20% over Pixar and 10% above FOX (Biggest Competitors)
Continue to see strong consumer support for higher IMAX ticket prices.
Expect this year box office will be the best year ever for DreamWorks.
Current distribution deal with paramount expires December 2012.
Been with paramount for 4.5 years. Have a lot of confidence in them domestically and internationally.
There are many weaker upconverted 3D titles such as Clash of the Titans.
In response to lesser quality converted 3D movies: "You can fool some of the people some of the time, were not going to fool anybody and neither is anyone else.."
Consumers have the choice to view in 2D if they don't wish to pay for higher 3D prices.
Enough high-end premium content coming out this year that will represent the highest quality 3D experience.
International release schedule for Shrek is based around World Cup
How many 3D screens are expected for Shrek 4 opening: By far the biggest 3D release domestic and internationally to date. 200-250 3D screens being installed a week. Paramount suggests north of 4,000 screens domestically will show Shrek 4.

DWA is currently up .13 in after hours, IMAX is down .01

Quick Post

IMAX is up another .07 in after hours so it looks like this up trend will continue. Will look to add on pullbacks. DWA is up .30 in AH.
I've also been looking into JMBA. Take a look at this chart.

There is a very low put/call ratio on JMBA right now. For the July 2.50 strike there are 15 call contracts being traded for every 1 put.

Daily Update

If you follow me on twitter you would know we had some exciting action today. IMAX hit $21 a 52 week high around 11am EDT and pulled back down to $20.55. Around 15:52 EDT IMAX broke 21 on decent volume and made a new 52 week high of $21.19. At 15:55 I put in a limit order to sell my September Call @ 4.90. This was a long shot in my mind because the bid was 4.70 and the ask was 5. at 15:57 (3 minutes before the close) my order was executed and I made off like a bandit. $273 profit +127%.
Here's a list of the trades I made today:

Sold GLW May 22.50 Call     @ .31      +    $2        +    7.67%
Sold (2) C June $5 Call         @ .19      -   $32        -   48.27%
Sold INTC July $24 Call        @1.06     +    $6        +    6.19%
Sold SWC May $17.50 Call   @1.35     +  $43        +  47.86%
Sold IMAX Sept $17.50 Call @4.90     + $273       + 127.00%

Originally Invested:       $508
Realized Profit:               $292
Return On Investment:      57.5%

Also picked up 1 USO July $42 Call @ 1.47

Current open positions:
(2) SIRI June $1 Call        @  .15          Sell Limit @ .25
(1) DWA June $45 Call    @ 1.40          Trail Stop @ .25
(1) USO July $42 Call      @ 1.47      Stop:1.15 Limit: 1.10

I will watch IMAX after hours trading tonight to see if I can get some insight into how it will move tomorrow. I do not have a problem playing IMAX to the upside again soon, I just wanted to take some profits. DWA has their Q1 earnings release tomorrow after market close which could effect IMAX. Look to see $21 as a support for IMAX.

I am also looking to enter a trade in FLS tomorrow. I noticed a channel forming which I may play long or short depending on its move AH tonight and at market opening.

If you decide to play this trade be careful. FLS is a very volatile stock, often making > 2% moves a day and this channel is about $6.75 wide or about 6%. Here is two trades I am looking at on FLS:
If it bounces off 119.40 level:
May $115 Puts trading around 2.20  Delta: -0.20  Gamma: .052
If it breaks through on good volume:
May $125 Calls trading around 1.50  Delta:   .15  Gamma: .04

Would need to see a big move to make a decent profit on these trades. For example a $1 move positively on each trade would theoretically yield:
May $115 Put:   +  $20     +9%
May $125 Call:  + $15    +10%

And a $2 move would theoretically yield:
May $115 Put:   +  $45.2     +20.5%
May $125 Call:  + $34        +22.7%

DWA EPS earnings estimate: .19
Last year actual: .68

4/25/10 Watchlist

Ok I think I found some goodies to share with everyone :), I still have some homework to finish tonight so I'll make this quick.

First up we have USO, this pick was mentioned to me by trader9999. This shows some very nice short term support resistance lines that have each been hit 4 times.

Next up is CDE.

Then we have CRUS

And LIWA is my favorite...

Goodnight and have fun this week.

The State of our Economy

On Friday I wasn't able to be at my desk as I am part of the Business Students Association at my college and we were putting on a Business Expo. Upon attending the expo, I have the opportunity of speaking with a local business owner who owns 5 Golden Spoons throughout the area I live in. If you don't know what Golden Spoon is it is a frozen yogurt chain which advertises as offering a healthy alternative to ice-cream. Rich is a very smart individual with a degree from UCSB. He has started his own business, built it up to 250 people and sold it, and has worked upper level for Microsoft.

The reason I am bringing this up is he said some very interesting things to me that changed my perception of the current Economy. On Bloomberg and CNBC we are told that everything is just peachy. Better then expected earnings, high growth forecasts, and improving housing numbers are all telling us that this recession is over. I wanted to get a different perspective so I asked Rich what his perspective was about the Economy, being in a business that deals directly with the people. He explained how this is the worst economy since the stock market crash of 1929. He told me of all his friends in the industry who have lost their stores, their homes, and whose lives are now in shambles. He told me how even he, with his solid, profit generating business that has been around for years, can not get a business loan.

And this got me thinking... California Pizza Kitchen is said to be going out of business, Block Buster has closed how many stores? I mean the Business Students Association couldn't even get a $200 loan from our School to set up the expo. This is not something that is going to go away over night, this is a serious problem. For now I am not bullish on the economy, I am bullish on the news on the economy. What I mean by that is I no longer believe all of these numbers that come out, all of the positive outlook. Until I hear someone in the real world working behind a counter saying "Sales are great!" my stance will not change. I will trade this market, but I will be watching very closely for another top and subsequent drop-off. Be prepared readers, there is a high probability it will come.

In other news IMAX hit a new 52 week high on Wednesday of 20.32 and were currently crawling back to that level. The fact that IMAX closed above $20 on Friday is very bullish in my mind. I am currently up around 90% on this trade :) hope you're enjoying profits as well. Will look at some point over this weekend to find some picks for the watch list. I am currently writing a research paper on Google for school which is the reason why my posts have been so few over this past week. After Monday my work load should lessen quite a bit and I will be able to focus more of my attention on this blog. Thank you for your loyalty!

Daily Update

Traded quite a bit today. Got stopped out on my ETFC position for a gain of $6.14 (+10.59%). Sold AKAM for profit of $47.07 (+48.03%).
I also bought some GLW which was trading near breakout levels. Got stopped out for a loss of only $2 and re entered the trade with a May $22.50 call at .26.

Heres a layout of my current positions

                                     Bought   Currently     P/L           P/L%
IMAX sept 17.50 call    2.17         3.80        +163          +75%
(2) SIRI June 1 Call        .17           .15             -4           -11%
INTC July 24 Call         1.00         1.06            +6            +6%
(2) C June 45 Call           .35           .27           -16           -22%
DWA June 45 Call         1.42         1.45            +3           +2%
SWC May 17.50 Call      .92           .90             -2            -2%
GLW May 22.50 Call     .29            .27             -2            -7%

Total:
Amount Invested: $667
Unrealized Profit:  $148
Unrealized Return:  22%

Don't worry, this time I have stop losses step up to lock in these gains :)
Imax is trading just below it's psychological resistance level of $20 watch for breakout or pullback.
INTC has formed a small downward trend on the hourly chart but I suspect it will break above 24.35 in the coming weeks. Blowout earnings like INTC released last week will send this stock higher in the future.

GLW I entered as it approached its 52 week high. This will be a breakout play and if it bounces off the resistance line again I will close.

SWC has been knocking its head against $17.10 for a couple days now. Entered this position as a breakout play as well. Only looking to capture a .30 to .50 move.

CNBC is currently showing DWA down .72 or 1.68% in after hours trading. Not sure what the cause of this is but I will look into it later in the night. After beating earnings, in after hours AMZN is down 7.84 or 5.22% and MSFT is down 1.46 or 4.65%. Looks like the bullish sentiment is wearing off and tomorrow (Friday) will probably be a down day.

In other news my trading account is displaying wrong basis prices for my positions for the second time in a month. Calling and complaining does nothing but fix the problem temporarily. I guess there are just somethings you must sacrifice for dirt cheap commissions.

Daily Update

All of my positions are doing quite well. When the news came out on Goldman Sachs on Friday and the market tanked, I was considering selling all my positions and just holding cash. I couldn't believe that an industry giant such as Goldman Sachs could loose 5% in 30 seconds. My feeling was that with a market as unstable as to let this happen, shouldn't be traded.

Well needless to say Monday and today has changed my mind. I will post more on this topic later with an update of my positions.

Daily Update

Bought 1 INTC July $24 Call on at .98. INTC came out with breakout earnings a couple days ago and I think this is a stock that should be in everyone's portfolio. Jim Cramer talked about Intel on Mad Money yesterday. While I don't really like Jim Cramer, he is very well educated and I do agree with his stance on Intel. I suggest you take a look at this video on CNBC. Also bought 2 C June $5 Calls later in the day for the low low price of .33. This is a speculative play along with my ETFC and SIRI positions. Will post more over the weekend.

Daily Update

I wasn't able to get the IMAX $20 Calls I mentioned in last nights post due to a pre-market jump. I did however manage to pick up the May $16 Call for 1.90. Also purchased 1 DWA June $45 Call @ .90. Got stopped out on LVS call for a $42 loss and I'm glad I did. LVS continued to trend much lower into the close. The technicals on LVS shows a resistance around 23.98 which coincidentally is where it closed.

Even though we tested this level twice today and earlier this month I don't think now is a good time to buy LVS. (After typing that last sentence I looked up after market hours and LVS is down another .40 at 23.60) LVS could possibly be a short but I will not trade LVS until I see a trend reemerge.
IMAX closed positive for the second day in a row today and is currently up .23 @17.64 in after hours. DWA produced some good buying opportunities as it's price dipped down to 40.35 twice today.

4/11 Watch list update
DIVX is still inside of it's trend line, waiting for a breakout to enter
AKAM is up 2.8% since I posted about it.
GMCR is heading towards its support trend line. Will look to enter if it bounces.
GNK broke above its resistance line today and closed up around .75 or 3.5%
IVN is trending towards its support line, now may be a good entry point. Look to take profit around 19.30 - 19.50
OIH is resting right on its resistance level. Watch for a breakthrough or a bounce to the downside, trade could go either way.
STT broke above 47.60 and stalled around 48.75 before coming back down. Watch for 47.60 to turn into a support line.

Goodnight!

Pick of the Day

Quick post. I believe now may be a good time to look into buying IMAX again. Was looking at some call options and I really like the May $20 calls. I don't expect IMAX to hit $20 by May expiration but take a look at the profit margin I've listed below.

IMAX May $16 Call @ $1.75
Delta= .694 Gamma= .125

IMAX May $20 Call @ .30
Delta= .20 Gamma= .098

Ok so lets say you bought 1 of the May $16 call. In my scenario once commissions are factored in my total cost would be $176.95. With a $1 move up in IMAX this option would profit $69 or +39%.
For the second example lets say you bought 4 May $20 calls @ .30 the total cost would be $127.80. With a $1 move up in IMAX this option would profit $72.20 or +56%.

(Notice MACD crossover)

With the $16 call you're risking $176.95. With the $20 Calls you're only risking $127.80. This sets up to be a very nice trade if you are bullish on IMAX :)

Update

I was unable to be at my desk today so I missed the market action. Got stopped out on DWA May $20 Call @ 1.95 (+$58.10 +42.44%) and HLX May $15 Call @ .93 (+$11.10 +13.55%). Will look to add more DWA tomorrow. I want to hold DWA through earnings because I expect they will do very well. Noticed on Sunday night that DreamWorks also worked on "The Pacific" a new mini series on HBO which has received an astounding 9.1 out of 10 on imdb.com. Also looking to add some NFLX. Found an interesting article about the possibility of a takeover of NetFlix. You can read it here. INTC had some good earnings and is currently bucking in the after hours. If I have time tomorrow I will post updates on my picks from Sunday night. Dow closed above 11,000 for the second day!

Update

This will be a short post as I am on my way out the door to class. Today I bought 1 LVS May $24 Call and 1 PALM May $4 Put. The PALM put was only .16. With PALM offering itself up for sale, the price has been bid up to around $6. Analysts estimate that PALM is only worth about 3-$4 per share. Once this is realized by the street, or bids come in in that area, the price will drop off. LVS closed just above its open and is currently down another .17 in after hours. Have a stop loss set on this one, we'll see how it performs tomorrow.

If you bought some DWA calls you are very happy right now and I only expect you to become more happy throughout the week :)

4/11/10 Watch List

I have found some good watch list picks for today Sunday 4/11/10. Click on the charts below for a larger image. Since we are entering earnings season I thought it would be beneficial to the readers if I included earnings release date and EPS estimate for each pick.

First up is DIVX. On this Hourly chart I notice a support at 7.20 and a resistance at 7.80. I really like those green candles that were printed the last two trading days. Wait for a breakout above 7.80 before entering. Earnings date May 6 EPS estimate 0.00

AKAM hourly chart.There were several support/resistance lines that stuck out to me. Stock has lost volume since it's initial volume spike but I think it still has upside potential.  Earnings date April 28 after market close EPS estimate .26

GMCR hourly chart. Been watching this one for a while. It has also been trending on twitter $GMCR. If we break above 97.50 watch for a break above 99.50 - 100.00

GNK daily chart. Look for a breakout of the pennant. I like the candle from Friday's trading. Earnings date April 29th after market close EPS estimate .99

IVN hourly chart. Upward trending channel. Earnings date May 7th no estimate yet

LVS 15min chart. Pullback in volume. Once this stock chooses a direction again I suspect it will be a big move. Earnings date May 11th EPS estimate .02

OIH daily chart. Watch for a breakout or further trending within the channel.

STT daily chart. Look for breakout above 47.60 then be cautious for hesitation or resistance around 49.20 Earnings date April 20th before market open, EPS estimate .79

DOW 11,000

Other then my bloody stock day yesterday, the markets performed fairly well. Near the close we kissed 11,000 on the Dow but I'm sure you already knew this as it is all over the news. How a psychological indicator could be such big news is beyond me. I bought a DWA May $40 Call at market open for 1.35 which was a premium to what it traded at for the rest of the day. That's just what happens when you want to get in early. By buying the May Call I will encompass DreamWorks' 4/27 Earnings release which I expect will beat analysts estimates of .20 earnings per share. I am still long-term bullish IMAX and will look to add more positions once I confirm the trading direction in the coming week. Also keep an eye on GMCR which has been knocking its head on a $100 resistance.

(Chart courtesy of HCPG on chart.ly)

No more insight for today I will do some research on Sunday and see if I can't find any gems we should all add to our portfolio.

Bulls Make Money, Bears Make Money, Pigs Get Slaughtered

When holding losing positions, you can either be one of three things. Confident in the position where your confidence outweighs the unrealized loss, stubborn about taking the loss, or just plain stupid. On my IMAX play I was just plain stupid. I would like to use this post to go over my IMAX play and explain some things I learned.

I listened to IMAX 2009 Q4 earnings call on 3/11. This was a very positive earnings call with IMAX experiencing substantial growth in Q4 and expecting this trend to continue exponentially with the building of many new theaters and a number of blockbuster hits to come out in 2010. With 3D becoming an increasingly excepted movie format and with the announcement of 3D TV production from several big name companies at CES 2010 on January 7th, it was looking like 3D wasn't going away anytime soon. I confirmed these feelings when I noticed $IMAX was trending on twitter with a lot of other investors sharing my same ideas. On 3/23 I bought one $15 April Call for 1.80 and sold two days later at 2.40 for a quick profit of $58 or 23.26%.

With the completion of that profitable trade, I grew more confident in IMAX. On Friday 3/26 I bought one April $17.50 April Call for .72 and one $15 April Call for 2.22. I have absolutely no problem with these entry points as I believe they are probably the best entry points I have taken on a stock to date. I did my research on the company, didn't rush into the trade, confirmed the uptrend in the stock and bought on a pullback. Over the next couple days IMAX became my biggest winning position. I closed some of my losing trades and decided to let IMAX run. My over confidence in IMAX and my inexperience with stocks trading at their all-time highs led me to remove my trailing stops and let my options rip. For five trading days from my entry point IMAX continued to make new highs, at points stalling, but always breaking higher.

Throughout this trade I had been in contact with my father telling him of my ideas and current trade positions. The day before IMAX pulled back I called my father to tell him that I was up over 73% on the two trades combined. Two words he said to me over the phone that day have been ringing in my head while I've been watching IMAX retrace, and my positions turn from green to red. "Be careful".

 (Click to view larger)

I wasn't careful. I had no trailing stops, no stop limits, no stop markets. Over the weekend I plan to take a serious look at my trading plan and goals. If I can't take a profit how will I be able to deal with my losses.

In conclusion, I believe that the best way we can learn from our mistakes is to go over them in painstakingly fine detail. If you can't discuss your losses openly you should #1 never talk about your gains, and #2 not be investing.

Take care.

Another Down Day

Lost another 10% in my account today. All trades lost money. I closed one of my BAC trades for a profit of +29.07 +46.19%. My IMAX positions lost most of their profits with the April 7.50 Call going red. I did manage to buy 2 SIRI June $1 Calls for .15. I would have loved them at .10 but no one hit the bid so I only like them at .15. This is purely a speculative play. I plan to add some DWA may calls tomorrow to encompass their earnings release.

Tomorrow will probably be a slow day, being Friday and uncertainty present in the market. I will be looking to get out of the rest of my April option positions either tomorrow or early next week.

Twitter!

Have noticed a substantial increase in the number of traders subscribing to my twitter feed. I would like to thank everyone for making me feel warm inside when I look at the "followers" number in my twitter account.

If you are interested in following me on twitter, click this link or scroll down and click "follow me" next to the engorged blue bird in the sidebar.

Victory Has A Thousand Fathers, But Defeat Is An Orphan

No Orphan Annie's here. As stated in my first post on this blog I will not embellish my profits NOR discount my losses. Today wasn't a fun day. Watched IMAX pullback to 18 hitting my overweight option positions hard. BAC opened up higher but pulled back late in the day and closed at 18.61. Entered into some positions today before doing my research: NEP April $10 Call and HLX May $15 Call. These retraced on me and closed a little below my enter price. I don't doubt that these will end up being good trades, but they way I entered them was not smart. A little bit of excitement and a little fear of loss caused me to buy these positions at their highs. For the most part I have managed to take emotion out of my trading but I guess I fell into old habits today. As long as I'm learning I'm not complaining.

All in all BAC hit new highs around 18.85 and I expect we will retest this level tomorrow as long as the pull back doesn't continue. If it continues lower look to ~$18.50 for a bounce. Now would be a great time to get into IMAX if you're not already. It seems IMAX bounced off it's $18 support which has proven itself as a key resistance/support level historically. Would have liked to get into DWA today but used up my Buying Power on those stupid trades mentioned earlier. Saw some serious volume pickup in SIRI which closed 1 cent below it's intra-day high of .96. Tried to buy June $1 Calls @ .10 but no one would hit the bid. Will look to buy these calls tomorrow as this is a nice cheap play that could pay off. PALM exploded above $4 and closed at $4.61 (Quite glad I sold my $4 Put :). I retain my stance that this rise was Bono buying more shares to pump the price hahaha.

Account down 10% for the day, I'm not bothered by it. I still support my positions and expect them to trend higher in the coming days. 8 trading days left till April options expire!

April 6th Recap

At market open I bought MEE April $50 Put @ 2.45. Watched it drop and rise all day until finally I decided that I had a moral issue with profiting off of Massey due to yesterday's mine explosion (currently 25 dead 4 missing). I sold near market close at my entry point only suffering the commission. Overall MEE closed down 11.41% so that would have been a great trade if you were in it. BAC saw a great gain today and closed at $18.49 above it's resistance point:










I suspect it will continue to the upside as this is the third time it has tested that resistance line.
IMAX: Saw some profit taking today. How to Train Your Dragon posted some great numbers (see below) watch for a climb into earnings release.
FLS traded at its 52 week high today. Will wait for further movement before I enter.
PCX gained roughly .9% today.
RDN had a 2.32% pullback today. This would be a great time to enter.
NFLX gained a whopping 4.23% today. I think there is still a lot of movement left in this stock. The more Blockbuster and other brick-and-mortar video store's profits suffer, the better NFLX will do. Right now I can watch NetFlix movies on my computer, my TV and my xbox360. Soon Netflix will be available on PlayStation3 and Wii. I can't think of anywhere Netflix wont be. Competition? What competition.
DWA had a dip today that would have been a great buying opportunity if you caught it. The stock came out of the dip with some serious volume. The international sales numbers for "How to Train Your Dragon" came out today:
Production Budget: $165,000,000
4/5 Worldwide Gross: $198,570,813

If you're not following PaulWoll on twitter you should. He gave some great insight into DWA today that I believe has gone unnoticed by the market. PaulWoll believes and I agree that once these numbers spread around the analysts that downgraded DWA will take notice.
Updates on this movie's gross can be found at BoxOfficMojo.com

Off to class. I wrote this post instead of studying for my test. Priorities hahah.

Today was a GREAT day

I am currently up over $240 on my IMAX positions! I am long-term bullish this stock I suggest everyone have a little IMAX exposure in their portfolio. BAC is continuing to play with my mind. I just happened to buy BAC at the tippy top of it's uptrend and am waiting to see if it can make it back to those highs. Boy did I wish I had buying power today, I watch WYNN explode up on open and close at $82.28 (+4.88 +6.3%). NFLX also exploded up on open and closed at $79.99 (+4.99 +6.65%).
Sold my QLD (+$68.10 +60.86%) profit. Sold out of my PALM (-28.93 -50.82%), couldn't watch it quiver around 3.80-3.90 anymore.
Tomorrow
I have an open market order on an MEE April $50 Put for tomorrows open. This comes after the tragic news about a Massey mine explosion in North Carolina earlier today. This is not the first time there has been fatalities in a Massey mine. I think this could be a big financial setback for Massey and create serious negative sentiment.Looking to buy some Calls on RDN tomorrow, take a look at this 3-month chart courtesy of cnbc.










I also plan to buy some Calls on PCX as it closed today just above its ~22.30 Resistance. Heres a chart from WeeklyTA on chart.ly















And that's all she wrote! Goodnight everybody

Trading Ideas 4/4/10

I have no Buying Power left in my account because of current open trades but here are my ideas anyway.

WYNN - Watch for bounce off 74.75 and break through 77.95
GLD - Showing a bullish pennant pattern, broke out above on Thursday. Currently trading at $110.26 look to buy July 114 or 115 Call
GME - Broke above channel, turning into bull Flag pattern. If trend continues look to buy May 23 Call
DWA - Gaped down a hard ~$2.50 on 3/19/10. "How to Train Your Dragon" had a great opening weekend but lost momentum this Easter weekend (understandably). My stance is Bullish this is a discount stock. Earnings release on 4/27 Looking to buy May Call.
NFLX - Bullish outlook, trending up.

Now lets catch you up.

Here are my trades from 3/19/10 - 4/2/10



My current open trades:
Palm 4 April Call
IMAX 15 April Call
IMAX 17.50 April Call
IMAX 17.50 September Call
BAC 18 April Call
BAC 20 May Call
MGM 9 April Put
QLD 66 April Call
ETFC 1.5 July Call

From the Beginging

If you haven't read my "About Me", I am a 20 year old college student learning to invest in the markets. I have 4 years experience in trading stocks, 1 year in Forex trading and 3 years in option trading. This blog will be used to document my trades, post my ideas, and hopefully meet some people who love what I love... trading.

I am trading with a small account so commissions eat up many of my profits. Luckily I have recently found a brokerage account that will allow me to trade options for .96 per contract. This blog will focus on my trades in that account beginning on the account approval date of 3/19/2010. Completed trades will be posted weekly.

I will not embellish my profits nor discount my losses. I am a firm believer that the more people you are accountable to in your trading the better you perform. I hope that with this blog, myself and the readers can grow and learn in our trading.

This is the confessions of a stock option fanatic.