Investor's Opinion

Portfolio Update: New Option Position

Published: 2010-05-27 21:35:00 EDT by Unknown

Today was a strong bullish day in the market. This is a welcomed change in direction considering the bearish trend the markets are on. The question here is, is this an official change in direction or just a bounce before further declines? I believe this is the bounce that will turn into an uptrend.

I wasn't necessarily expecting a strong move today, but as I was expecting something I entered an order today to buy 5 December call options of CitiGroup Inc. (C) at the $4 strike price. I believe that at these prices there has been sufficient pull back for it to begin growing again. This order I put in was executed successfully and I followed it with an order to sell after gaining 25% net profit after commissions. That order was entered for the day only and I am going to be entering daily orders to sell so that I am able to set them with a qualifier of All-or-None.

The reason why I am putting in a sell order for a 25% gain is that I am trying to capture the gains that I believe that I can be certain of if it moves up strongly. If it gets to the point where I can start expecting greater gains I will eventually start putting in railing stop orders so that I can follow the slogan of "letting my losers loose, and letting my winners run." That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

Labels: option picks, option strategies, update

Updated: 2010-05-27 22:03:49 EDT