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AAPL – Long

Apple kept on falling  in dramatic fashion right to my buy point around the $508 area as stated in my previous Nov. 8th post : https://xtradespace.wordpress.com/2012/11/08/aapl/

It was a gift of a trade since I could double dip by buying both a large day trade position and a smaller longer term position at the same time.

Bought in the low $509 area and sold my day trade position in 2 lots. One lot in the mid $519 area and the 2nd in the mid $527 area.

For the remaining longer term shares, my stop is below the low of $505.75.  The best part is the day trade paid for any losses in this trade so it’s like a free ride at this point.

Target is the 20ma (fuchsia line) which is sitting around the $570 area.

It’s a very bullish hammer candle pattern (price drops dramatically and then recovers to end the day positive) that hopefully will be confirmed to the upside next week.

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DOW – Index

My custom indicator shows a support level at 12220 area (yellow line). The DOW is currently at 12475 so that’s another 250 pts. We should get a nice tradeable bounce at that area.  The way things are going, maybe tomorrow (Friday) or Monday?

YHOO update

Exited 25% of my holdings at $18.10,  leaving me at only 25% of my original position.  Hopefully it will rest and consolidate so I can build up my position again for the 2nd leg of the move to the $20.49 area.

 

The Yen has collapsed (against the US dollar) and busted through my 1st target at $80.50 area which now becomes support. The move was pretty powerful so we can expect more if it holds. All we need is some consolidation above that level for the big move to the 2nd target area at the $86.50 level.  If we get a nice consolidation for a few days then Christmas may come early this year.

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Earnings – ANF

ANF looks ripe to make a move but the options are very expensive. They announce earnings before market open on Nov 14th.

Let’s try a simulated Strangle for fun: Nov Call 31.5 @ $1.69 / Put 31 @ $1.74

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ANF seems like a great stock to sell options against, will look into it.

UPDATE 10:29am : What the heck, did ANF cure cancer or something??? They gapped up over 25%!  the Nov 31 calls are at $8.55.  I guess I should have played this one.

Earnings plays – IGT, MTG, FWLT (Update)

The day following earnings was pretty much a non event. All 3 options are underwater. I think when I use options I should buy with at least 2 weeks until expiration.

IGT – Call 14 @ $36

It gapped up the next day on good earnings and then ended the day flat. Will see if it can continue the momentum upwards.

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MTG  – Strangle Call 2/Put 1.5 @ $11

Started well by gapping down on earnings and then promptly filled the entire gap. Oh well.

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FWLT – Call 24 @ @26

This one had a small pop and then ended the day down. Pretty much a non event. We’ll see what the next few days bring.

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a bullish Butterfly on this week’s SPX

Butterfly on this weeks SPX

this is a CBOE Video, which I find very instructive

Options, Options, Options

tiptoptp's Blog

Here is link to a great resource and free online education on Options and Options Trading:

http://www.cboe.com/LearnCenter/Default.aspx

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Earnings plays – IGT, MTG, FWLT

More fun with options. None of these setups are great, but they’re cheap and with the markets oversold we can either get a snap back reversion to mean or a panic sell off, both are good for earnings plays. If the market wasn’t so crazy I probably would not be taking these trades.

Nov. Expiration

IGT – Call 14 @ $36

MTG – Strangle Call 2/Put 1.5 @ $11

FWLT – Call 24 @ $26

AAPL

Ugh, our internet was out for like 6 hours today 😦  Just got it back…

Apple tanking hard, I have a custom support line at $508 area, give or take a few dollars. I will enter and load up if it gets down in in quick fashion. If it grinds down then I’ll wait for a classic bounce-pullback-enter setup.