The stock has moved up in price to the $4.50 range. Right now the account only owns the stock. The opinion is that the stock sold off too much in the last week. It was able to capitalize by buying back the option at a profit.
There will be three conferences and an earnings announcement in the next two weeks which provides for a nice marketing opportunity for the company and the stock to move up.
The July option moved back up into the $0.50 - $0.75 range. The option will probably move at a 50% level to the stock at this point since there is no time value attached to the option.
The account feels bullish on the stock and will continue to monitor the trade.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Friday, April 30, 2010
Monday, April 26, 2010
EXAS trade changed
The account noticed that the call associated in the trade had dropped all the way down to $0.45. So the account bought back the call. So the account sold the contract for $1.10 after commissions and bought it back for $0.60 after commissions.
The stock is currently trading around $4.30. The stock hit the 100 day ma earlier and rebounded up to hit the 50 day ma on decent volume.
The account feels that with earnings coming up in the next couple of weeks, the stock has an opportunity to rise and the account can capitalize. Stop limits have been adjusted to reflect the sale of the call.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The stock is currently trading around $4.30. The stock hit the 100 day ma earlier and rebounded up to hit the 50 day ma on decent volume.
The account feels that with earnings coming up in the next couple of weeks, the stock has an opportunity to rise and the account can capitalize. Stop limits have been adjusted to reflect the sale of the call.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Sunday, April 18, 2010
EXAS trade 25% done
There are a little under 13 weeks left on this trade.
The stock has lost about 45 cents due to the company successfully selling 3.5 million more shares into the market at a price of $4.5o. Please see the previous post about that. The stock is still over its moving averages.
Earnings has normally been been issued in the second month of the quarter. It has been announced that the company will release its earnings for the last quarter in the first week of May.
The option has dropped in value to a $0.50 bid to $0.60 ask. The option's value has dropped by more than half.
The account put in a buy order with Optionsxpress to cover the call and lock in a profit of over 50% of the call value in just 25% of the time involved. The order price is currently below the bid so the option has to come down a little before the order is executed. The account will have to adjust the stop loss amount to reflect the overall decrease in revenue if the trade is executed.
Are you trading any covered calls?
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The stock has lost about 45 cents due to the company successfully selling 3.5 million more shares into the market at a price of $4.5o. Please see the previous post about that. The stock is still over its moving averages.
Earnings has normally been been issued in the second month of the quarter. It has been announced that the company will release its earnings for the last quarter in the first week of May.
The option has dropped in value to a $0.50 bid to $0.60 ask. The option's value has dropped by more than half.
The account put in a buy order with Optionsxpress to cover the call and lock in a profit of over 50% of the call value in just 25% of the time involved. The order price is currently below the bid so the option has to come down a little before the order is executed. The account will have to adjust the stop loss amount to reflect the overall decrease in revenue if the trade is executed.
Are you trading any covered calls?
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Tuesday, April 13, 2010
EXAS releasing more shares
Exact Sciences announced today in a report that they have releasing 3,500,000 more shares. They sold the shares were priced at $4.50. They also gave an option to the underwriter to purchase a further 525,000 shares at a later date.
This should knock down the share price a little and the option price a lot. But we will see.
This should knock down the share price a little and the option price a lot. But we will see.
Monday, April 12, 2010
EXAS trade update
So the EXAS trade has a little under 14 weeks remaining on it. Here are some details on how the trade is going.
- The stock is trading a few cents below where the account bought it. There has not been any news on the company in the last week. Earnings for the company are expected in the first week of May.
- The stock briefly hit its 50 day moving average of $4.10 and moved up off of it. There seems to be some resistence at the $4.75 level. The volume on the stock has been lower than its average. The Bollinger Bands have had a consistent 70 cent channel.
- The option price (July 5 call) has dropped 25% in value during this time and is now bid at $0.95. This is good for the account.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Monday, April 5, 2010
ENER high call value
The account was doing some research and noticed that Energy Conversion Devices (ENER) has a high call value.
The stock is trading at $7.40 range. The May $8.00 call is currently bid at $0.50.
Do you know of a stock that would be a candidate for a call selling trade? Email or comment and let the account know!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
The stock is trading at $7.40 range. The May $8.00 call is currently bid at $0.50.
Do you know of a stock that would be a candidate for a call selling trade? Email or comment and let the account know!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
Friday, April 2, 2010
Beta for EXAS
The beta for EXAS is currently 1.4. So it should have a larger movement to news on the stock than the general market.
Thursday, April 1, 2010
two weeks in to EXAS trade
So the account's trade on EXAS (bought shares and then sold the July $5.00 call) is two weeks old now. There are 15 weeks left until expiration of the option. The activity of the last two weeks for the trade are below.
EXAS stock has moved down about 36 cents since the account bought shares. It has not been above the price which the account bought the stock. Also, it had seven straight down days until this past Wednesday. The stock is right now around its 50 day moving average. EXAS is still well over the stop loss for the trade. There has not been any new company news since the trade was made.
The price of the call has also fallen. It has fallen about 30 cents since the account sold the contract. The fact that the call has not fallen as much as the stock indicates that there is still some strong bullish sentiment on the company's outlook in the market. The call is being bid at $0.95, which is over 20% of the stock price.
The account will keep going and monitoring the trade. There has not been any fundamental or technical reason to change or abandon the trade. There is actually more value in doing the trade now than when the account did two weeks ago!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
EXAS stock has moved down about 36 cents since the account bought shares. It has not been above the price which the account bought the stock. Also, it had seven straight down days until this past Wednesday. The stock is right now around its 50 day moving average. EXAS is still well over the stop loss for the trade. There has not been any new company news since the trade was made.
The price of the call has also fallen. It has fallen about 30 cents since the account sold the contract. The fact that the call has not fallen as much as the stock indicates that there is still some strong bullish sentiment on the company's outlook in the market. The call is being bid at $0.95, which is over 20% of the stock price.
The account will keep going and monitoring the trade. There has not been any fundamental or technical reason to change or abandon the trade. There is actually more value in doing the trade now than when the account did two weeks ago!
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.
- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.
- If you have any info regarding call selling, be sure to comment or send an email. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls. Please pass the blog address to others that might find some value from it.
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