Friday, February 1, 2008

OPEN: MER Call Calendar, AMZN Put Diag, GDX Put Cal., DRYS Bear Call Vert

So I placed 4 GTC trades last night that all got filled this morning within the first 1/2 hour.

MER- Call Calendar
Nice neutral channel between 50 and 60 for the past 3 months...
Call Calendar Sold Feb 55/Bought Apr 55 Call for debit of $2.48
Yield= $2.72 credit from selling Feb 55/ $5.20 debit from buying Apr 55= 52% in 3 weeks
Stop Loss @ $1.24 (50% loss for calendars)

GDX-Put Calendar
Neutral channel between 45.00 & 52.50 on stock
BOT +42 CALENDAR GDX JUN 08/Sold MAR 08 51 PUT @ $2.15 debit
GDX MARK 49.94
Yield= $4.00/$6.15= 65% in 6 weeks
Stop set for $1.07 (50% loss on calendars)

DRYS- Bear Call Spread
SOLD -21 VERTICAL DRYS FEB 08 80/Bought 85 CALL @ $0.49 credit
DRYS MARK 67.44
Profit= $0.49
Risk= $5.00-0.49=$4.51
ROI= 10.9% in 3 weeks
No stop loss on Verticals needed- sized for max loss

AMZN- Put Diagonal
Open: Bought +1 DIAGONAL AMZN APR 80 Put/Sold FEB 08 60 PUT @ $12.02 debit, AMZN MARK 69.34
Stop set for $9.62 (20%)
Stopped out at 12:48 pm: SOLD -1 DIAGONAL AMZN APR 80/Bought FEB 60 PUT @9.60, AMZN MARK 74.80
$2.42 loss= 20% loss