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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.

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