Thursday, October 2, 2008

Bear Call Spreads (BRCS)- AMX, CHL & EEM

Here are some bear call spreads I'm looking at for this week that I brought up in last night's meeting. I'm expecting to be in and out of all 3 of these brcs so I am setting limit orders to GTC for 80% of the credit. BTW, I am having trouble attaching my charts to this post so my AMX chart is missing below (not sure what's going on with that)...

AMX- Oct 50/55- currently at $0.92 but I will place an order at around $0.97-1.00 to capture some more premium with the news on the bailout. (the final vote in the House of Rep. is set for tomorrow). From the chart, I see the downward channel it has been in since April. The volatility on the options chain is very high with the front month near 73.45%. The last 2 days have retraced up so that's why the premium is in the $0.90 cent range. I like the resistance level at 50 so it gives me a little cushion.


CHL- Oct 55/60- similar chart to AMX with a downward channel and the last 2 days bullish (for higher premium on the calls). The volatility on the options chain is very high with the front month near 77.53%. The current credit is $0.85, but I'll place my order at $0.95 and watch it today.


EEM- Oct 38/40 (this one's my favorite because I like $2- $2.50 strikes
The chart is like deja-vous to the other two. The volatility on the options chain is very high with the front month near 79.56%. So you can get $0.35 on a 1.65 risk! WOOHOO!

2 comments:

Anonymous said...

Hi Gekko,

Could youn tell us how do you choose your stoks to trade?.

What do you look when you scan?

Regars frm Spain.

A.

laguilar said...

Hola- I am going to do a post about my rules on selecting stocks for you.

thanks for reading my blog!

Yo hablo espanol tambien. :)