Mohawk (MHK) has been falling steadily since the end of May. I started with two naked puts at the July 65 strike (received $348.50) and chased the profit with two July 65 naked calls (received $148.50). MHK kept falling, so when I charted it again yesterday afternoon to see where I thought support could be found. All…
Month: July 2008
Getting Ugly For Me On ETN
ETN was down more than $10 this morning. That’s over 13% down from yesterday’s close. I planned to wait until after Friday’s options expiration to sell calls on it, but decided I had to cut my losses sooner rather than delay it. While Eaton (ETN) was trading at $69.28, I sold one ETN July 70 call (ETNGN) and…
Oil ETF – USO Chart – July 11, 2008
I’m charting the oil ETF USO again after I last charted USO at the end of May. I drew a few trend lines then and as our (those who eat and drive) bad luck would have it, the shorter trend line of higher lows held support. That same line is still holding and the price of oil…
Sold CHK Naked Puts
I saw T. Boone Pickens on CNBC earlier this week talking about his plan to reduce our dependence on foreign oil. Wind is a major part of the plan. Natural gas is also a part of the plan. He plans to make his money on the wind farms he has bought the land for and plans to develop. He…
Sold AAPL Naked Put, Again
I’ve sold Apple (AAPL) options a few times and have an overall profit from my series of trades. I don’t like taking big risks with it since it is so volatile and try to sell naked puts far out of the money (OTM). I like trading it due to its volatility too. That makes the premiums much…
Early Option Assignment on KFT and Sold MHK Naked Calls
I have been down on my Kraft (KFT) July 32.50 naked puts (KFTSZ) since soon after sold them. This morning I received an email that those 300 shares were assigned early. I was forced to buy 300 shares of KFT at the 32.50 strike and paid $9,769.99 with commissions. I received $362.75 from my original sale of these naked…
Dow Jones ($DJI) Chart – July 3, 2008
The Dow Jones Industrial Average (ticker: $DJI) hasn’t recovered since I wrote about the trend line break two week ago. In fact a second break occurred on June 26th and now the old support level (floor) is acting as a ceiling as the downward trend continues. The DJIA’s 10, 20, 50, 100 and even its 200…
Sold NVDA and TDW calls
As if the past few days of $1000+ losses weren’t bad enough for me, NVDA took a nose dive pre-market today and never recovered. It closed the shortened trading day down 30%. They took a major charge for a production glitch and piled it on by lowering quarterly sales forecast. I am sitting on four August 17.50 naked…
Sold AA and BA Naked Calls
Today was insane. I saw the Dow down 120, then up 20, then down 150 and then up 30 by the end of the day. I had a hard time focusing on my work and I’m sure more than a couple of coworkers noticed me charting all my stocks and then studying my spreadsheet for what I should do. Once I…