4.17 Wrap

Solid action today with the market moving up all day and a bit of selling at the close, but overall healthy action and considering AAPL was down GOOG was down and many financials were down mainly C & BAC on earnings misses.

INTC I took a shot on earnings risking about double what I usually would on an earnings play due to how risky and in a sense gambly they are.  After initially popping AH on stronger margins it seems as if investors take it for what it is a slowing company with no growth and sold it off.  We will see in the A.M. if their is something to salvage here or if we are a complete loss.  Not looking good and this is when I hate playing earnings, but when your right its great.  Love hate relationship...  I actually am a user of a great chat room accessatrader.com and had gotten the INTC numbers early and tried to exit half of this INTC play but spreads went like very wide and was impossible to get a fill.

EBAY earnings trade another loser... Hate earnings plays ;)

As I mentioned on Twitter on took off half of the PCLN long trade on the afternoon strength removing some risk.  Trade currently looks like this:  So while I did remove some risk there was risk added in the face that I remain short the entire 675/685 call spread.  But it was a good decision to take some gains and while we are not guaranteed gains here we are fairly close as long as PCLN stays below 680ish.  If we get 670-675 tomorrow that would be great and would wrap up a nice trade.

CBS was the highlight of the day for me, and possibly the week depending on how AAPL & PCLN play out.  So I booked about half of the whole play and now have a guaranteed gain and i have some runners to do some more work, there was no real dumping in these calls today so higher prices should develop.  With that being said this is important and something you will hear from me often A. Take risk off when appropriate B. Book gains C. trail some (we all love hitting home runs so lets have an opportunity to do so).  I am not one of these home run guys, and you know why those guys are 100% loser guys on trades, they position their trades as all or nothings and the truth is there will be losers and probably more losers than winner so if these home run guys are not hitting home runs and hit losers or singles they are going to blow up.  Not saying their style is wrong it is just not for me... I like to sleep at night.  I will share an example below.

I am not perfect by any stretch and the market is always there to remind you and punish you for your greed or not taking profits.  So below you see a trade in FXI and sure you could say ehhh you lost $500 not a big deal and your right it is not, but what is, is being sloppy and greedy.  Luckily I wrote some front months against my position early on to generate some income and that is sticking to my plan but after they expired I was left with just my original trade.  At one point in this trade I was up well over $7,000 but A. did not book any B. did not take any risk off C. Well, I trailed some but it was all of it.  So instead of making 4-7K I lost $500.  Market is always their to remind you and punish you.  Trade your style this is just mine.

AAPL did exactly what we wanted to had a dead day with no volume and we are in a great spot in this trade.  Now just as I wrote the prior example I did not peel any of this trade off as these are my home run trades and at times I go for it as I took PCLN risk off and am having a decent week.  Also am extremely confident in the $500 number tomorrow and we have +-5 from that number and can work around it if things fall apart intraday....  Maybe mother market gives me a reminder tomorrow, but this trade has a guaranteed gain in it.  So at least I did B :).


The march AAPL trade from yesterday was down about 2K tomorrow, it will be discussed over the weekend.  Should have waited to Friday, which I initially told myself but not big deal trade is going out far.

RIMM sets up pretty nicely here after falling early it had a strong close and closed at the highs so solid action and is currently building a flag so one to watch it has certainly been volatile and can make fast moves.

LNKD is setting up and looks good through todays highs, but this name you need to be cautious in a really make sure their is volume behind the break because this name has tended to fail many times this week and having dollar swings.  So tight stops and needs volume.

OC  a name seeing  alot of bullish flow for the past week or so, and today buyers were again active in the may 40'S.  OC is currently a bit over extended and over bought, but can always remain that way for long periods of time.  I would not chase this name here, but one to watch on pull backs for a possible entry and also see if their is additional call buying the days ahead especially on any dips.

CYBX a name that broke down hard today despite a lot of bullish action in many other health care names.  It closed right on support and this one looks like a good short through todays lows, which align with support.  MACD bearish cross RSI rolled over and so did the stock.  There are 5600 July 50 puts sitting in OI in a name that does not trade many options that is worth noting.

GCI is setting up really nicely here and a break through that 19.76 level could be a spot to get involved either with a day trade or some form of options trade.  Not a name that trades a lot of options, but today saw a large position taken with over 6000 July 23 calls bought.  Also seeing OI build in feb in the money calls and march out of th emoney call so definitely a good candidate if looking to add longs here.

HYG has a fairly strong chart and I bring this to attention because it is correlatted with the market being that it represents high yield corporate bonds.  So today saw MACD crossing bearish and also saw a massive 30K march 94/91 put spread purchased.  So essentially a bearish bet on high yield is in a sense a bearish bet on the markets.  Just something worth noting.

SNDK broke out today and it started off early and then trended up all day, but what was interesting is large call buys in the name for options expiring tomorrow.  9K 47 calls and 6K 49 calls trading late while the 47 were in the early afternoon.  So we've missed this trade but I bring it to attention because there still could be a play to be made.  In general this type of buying leads to early morning gap ups so looking at the weekly 50 to 51 range could be a spot to get short this stock for a day trade.  You have to be watching the name and watching the calls I mentioned once you see those calls being closed out and profits being taken it presents a great opportunity to get short.  It is a difficult trade but if you can get in in the right spot it can be highly profitable especially in a volatile name.

WYNN continues to look great and a great day to break out is on a friday because you can enter weekly calls fairly cheaply as you dont have much theta to deal with.  On this break I like the weekly 125 calls for a day trade could easily be a double or triple if wynn takes off.

VOD calls heated up again today after a few days without much action 11K feb 25, 11K feb 26 & 7K feb 27 and 7K jul 26's so fairly large positions maybe a deal with Verizon who knows.  But as this is similar to action early in week before VOD fell sharply I too this as an opportunity to enter fairly cheaply.