 |
Trades and
Follow-up Commentary for
February
27, 2005
|
Issue No.
7
Last
Updated: 02-27-05 12:00
PST
| |
|
|
 |
| Company: Affymetrix |
| |
| Stock
Symbol: AFFX |
|
| Suggested
Trade: |
| Long: March 45 calls |
Short: March 40 calls
(3:1) |
| Special
Conditions/Other: NO | |
|
|
Comments: |
| AFFX has
overcome resistance at the 40 level and for the
past 3 weeks has consolidated above it. It
finished strong last week and, in my opinion,
appears ready to attack the next resistance
level at 50. |
|
|
|
Trading
Strategy:
|
|
We
will put on a CREDIT SPREAD by selling short 2
March 40 calls, and buying long 6 March 45
calls. |
| Strike |
Symbol |
Last |
Chg |
Bid |
Ask |
Vol |
OpenInt |
| 40(C) |
FIQCH |
4.20 |
1.40 |
4.10 |
4.30 |
31 |
626 |
| 45(C) |
FIQCI |
1.00 |
0.55 |
0.90 |
1.05 |
134 |
1,303 |
| Call
Options Expire at close Friday, March 18,
2005 |
|
|
|
 |
 |
| Company: Taser
International |
| |
| Stock
Symbol: TASR |
|
| Suggested
Trade: |
| Long: March 12.5
Calls |
Long: March 13.75 Puts
(1:1) |
| Special
Conditions/Other: NO | |
|
|
Comments: |
| Taser has
formed the same pattern as it did back in June
of 2004 which resulted in a rally from 12.5, to
25. However, in my opinion, this company is a
fraud and one of these days - I wish I knew what
day that is - the stock will trade at $2.00.
Thus, I want to take no chances! |
|
|
|
Trading
Strategy:
|
|
We
will BUY TO OPEN, 5 contracts of the March 12.5
calls, and 5 contracts of the March 13.75 puts.
|
| Strike |
Symbol |
Last |
Chg |
Bid |
Ask |
Vol |
OpenInt |
| 12.5(C) |
QURCV |
1.25 |
-0.45 |
1.25 |
1.30 |
444 |
3,037 |
| 13.75(P) |
QUROM |
1.20 |
0.30 |
1.20 |
1.25 |
2,849 |
6,283 |
| OPTIONS
Expire at close Friday, March 18,
2005 |
|
|
|
|
|
 |
| Company: ONYX Pharmaceuticals
|
| |
| Stock
Symbol: ONXX |
|
| Suggested
Trade: |
| Long: March 30 calls |
| Special
Conditions/Other: NO |
| | |
|
|
Comments: |
| The stock
has formed a double bottom. The first upside
objective ought to be 35, however, this is a
highly volatile stock, and thus, 45 can't be
ruled out. |
|
|
|
Trading
Strategy:
|
|
We
will BUY TO OPEN 4 contracts of the March 30
calls..
|
| Strike |
Symbol |
Last |
Chg |
Bid |
Ask |
Vol |
OpenInt |
| 30(C) |
OIQCF |
2.20 |
-0.10 |
2.10 |
2.20 |
421 |
10,350 |
| OPTIONS
Expire at close Friday, March 18,
2005 |
|
|
|
|
|
 |
| Company: PHLX Gold/Silver
Index |
| |
| Stock
Symbol: XAU |
|
| Suggested
Trade: |
| Long: March 100 Puts |
| Special
Conditions/Other: NO | |
|
|
Comments: |
| The XAU has
rallied nearly 15% without any pullback at all.
If you go back 10 years you'll see that any 15%
advance has been followed by a pullback
amounting to at least a .318 Fibonacci
re-tracement, and in most cases to a 50%
Fibonacci re-tracement. Notice that the .318
Fibonacci level is at 95.26, while our
break-even level for this trade is 96.5. In
other words, we only need a 2 point pullback to
break even, and if we get a .318, or, .50
Fibonacci retracement, we'll make a decent
return. Of course, nothing is guaranteed in
trading, and I am very uneasy about the dollar's
prospects. If something caused the dollar to
tank, gold would soar, thus, despite how good
the trade looks on paper, I don't want to take
too many chances, we will only risk at most
$900.00 |
|
|
|
Trading
Strategy:
|
|
We
will BUY TO OPEN 3 contracts of the March 100
puts.
|
| Strike |
Symbol |
Last |
Chg |
Bid |
Ask |
Vol |
OpenInt |
| 100(P) |
XAVOT |
2.65 |
-0.45 |
2.60 |
3.50 |
298 |
1,843 |
| PUT
OPTIONS Expire at close Friday, March 18,
2005 |
|
|
|
|
|
|
Positions as of the Close of Friday,
February 18th, 2005
| Symbol |
Last |
Change (ECN) |
Paid |
Value
(ECN) |
Gain (ECN) |
Cnts |
Name |
| CASH |
|
|
|
|
$59,913.00 |
|
|
|
|
| Total: |
$59,913.00 |
$9,913.00 |
19.82% |
|
| |
|
Please note the
following:
1) The recommended starting
capital is $50,000.00.
2) All
transactions include transaction
costs
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