Tuesday, 26 August 2014

Two new positions taken

I took a position on two new set of options. The first one is Amicus Therapeutics, Inc. (FOLD). I had taken a small stab at it before and had bought one call option with a $5 strike just recently. So this isn't exactly new but for the blog itself, it's new. I actually added 4 more to make a total of 5 contracts at the $5 strike, set to expire in October. Not really sure how high this stock will go but the trend looks to be going up. Of course I could just as easily be seeing things as I'm still new to following a trend. I also used part of the CAN SLIM formula when making the decision to enter this trade. I saw a small W pattern on the 90 day chart and a cup with handle on the 5 day chart. Might not make a huge profit but we'll see. Setting the stop loss point at $5. So if it goes below $5 per share, I'm cutting losses and dropping it.

The other position I took is actually a put option. This will be my first put options so I won't be surprised if I lose out on this. I found the stock by reading an article on Seeking Alpha and decided to look into things. I decided to look into this position based somewhat on their ads and how it seemed so much like a scam. As I looked at other things about it including their fundamentals, it just felt weird for a company like this to be priced so high when profits were so low. Not to mention that after that big drop followed by a big jump, the trend seems to be taking it down. How low is it going to go? I don't really know. But I took 5 contracts in an Out of the Money put option with the strike price of $47.50 and set to expire in January 2015. That gives them two more ERs to show whether they'll go back up or drop further. I'm setting the stop loss point for this at $55 a share. If it hits or goes higher than $55 a share, I'll cut losses and drop it.

Here's to experimentation! Capitalism, Ho!

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