Wednesday, 5 November 2014

Some of the new trades

I decided to sell my calls on BBRY today. They were starting to trend down and I would rather use that money to make more instead of leaving it locked in. Took a bit of a loss but I saved most of it enough and decided to buy some short term puts in BBRY instead to try and take some profit on the downward trend that it's going in. Sent an order to buy BBRY puts at a strike price of $10 set to expire on December 5th. Decided to try to get 15 contracts for $0.52 each. Order hasn't gone through at the time of this entry but it's close enough to the ask price that I expect it to go through before the end of the day.

Another trade that went in was for SCON. I wasn't expecting this to go through since the ask price was going for $0.40 while the last bid was $0.15 and I was asking for $0.20. But it went through and the direction of the trend for SCON seems to be going up. So I managed to buy 20 contracts for $3.00 calls to expire in January 2015. I'm not too thrilled at the amount of liquidity in this options play but it might make a nice amount of gain still I think if the trend continues upwards. Resistance for the share price for this seems to be at $3.10. ER next week might allow it to break through it if the trend continues and they report a positive EPS. Their trend in the EPS has slowly been going up from $-0.42 to $-0.21 -> $-0.25 -> $0. While I shouldn't be making predictions, I can't help but predict that their next EPS will be in the $0.05 to $-0.05 range.

Third trade that went through was calls in ALU at a strike price of $3.00. I bought 30 contracts at $0.50 each and they're set to expire in March 2015. That gives me about 2 ERs to work with and their trend has also been going up lately. A lot of their R&D seems to be bearing fruit for this company but time will tell how well it does. Predictions from other people are that it will be around $4.00 by the end of the year. If it actually hits that, my investment in this will double so not too bad a deal for holding onto it for 2 months I guess.

Decided to hold off on selling my NOK contracts yesterday. But I'll be keeping a closer eye on it since it's going sideways right now and can go either up or down soon. Unlike the BBRY contracts which were out of the money, the NOK contracts are still in the money so I might sit on them for a while until closer to expiration date. Really depends on if the trend starts moving down obviously or not though.

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