I charted the weekly price action for the Dow Jones Industrial Average ($INDU) today. The past few days highlighted in the blue square look like a ping-pong ball bouncing off the table and being met with a firm paddle on the up side. The key take away from last week’s price action is that the DJIA…
Month: November 2007
CRM – Sold Naked Puts
Salesforce.com (CRM) beat earnings yesterday and shot up more than 8% today. I took the opportunity to sell naked puts on it. While CRM was trading at 55.12, I sold two January 45 naked puts (CRMMI) and received $288.50 after commissions. Implied volatility is over 60 for this strike which allowed me to sell at a…
Option Expiration Friday
I have a few naked puts (DOX, CAT, MOT, GM) that will be assigned to me with this November option expiration today. I’ve looked at all of them and they all have similar charts that show they are near the bottom of their trading channels. If this over sold condition snaps and stocks have another big…
Boeing Co (BA) Covered Calls
I wrote about being assigned 100 shares of BA yesterday. I charted BA yesterday and again this morning. It looks like it’s near the bottom of the trading channel and should bounce up, but hasn’t yet. The fundamentals are debatable with the massive orders they have in queue being questioned on their ability to deliver…
Option Assignment: Boeing Co (BA)
I received the following email from TD Ameritrade this morning regarding an option assignment from my naked puts on Boeing Co (BA): Date: 11-14-2007 Dear Valued Client, RE: For account ending in **** You have recently been assigned the following option position: 1 BAWT. If you don’t have sufficient cash or positions to cover this assignment,…
How Long Have You Been Investing – Poll in the Right Sidebar
I updated the poll in the right sidebar. The new question is “How long have you been investing?” I’m curious about the average My Trader’s Journal reader and years of investing experience. This doesn’t have to be years with options investing, just total investing from when you opened your first mutual fund or bought your…
Dead Cat Bounce?
I love Wall Street if for no other reason than the sayings that come out of there. “A Dead Cat Bounce” is used when a stock or index has fallen hard and then has a short lived bounce or up tick before coming back down. Basically it means that even if a cat is dead…
VIX and VXN Making a Run
It’s been a few months since I wrote about the VIX hitting four year highs. On Friday, the CBOE NASDAQ Volatility Index (VXN) closed at 32.52, its highest point since Q3 2003. The VIX is trying to get back there to its recent highs too and if we get another 100+ point drop in a day it should reach a…
DJIA ($INDU) Chart – November 9, 2007
What a F*cked up week that was! I went back to last weekend’s DJIA chart and added in some edits in italics to highlight where the Dow Jones Industrials lost it from a technical analysis view. Throw in the news I got at the beginning of the week (which apparently shook all of Wall Street with concern) and…