Investor's Opinion

Portfolio Update

Published: 2010-10-06 23:38:00 EDT by Unknown

Yesterday I said I would think about a few option trades, and after careful deliberation over the list I decided to place two orders. The first was 3 AMR Nov 20 2010 $6.00 calls and the second was 3 BAC Nov 20 2010 $14.00 calls. Long-story-short, only the first one was executed. AMR decided to gap up on the open and then pull back to the highs of the previous day. The close on AMR was higher than the previous day despite pulling back from the open. As a precaution, I have my GTC stop in place at a 25% loss and will wait to see how tomorrow fares for my position.

Although I believe AMR is prepared to have a short term bullish move, I am also perceiving the possibility of a bearish move in QQQQ. Because of this prognostication, I am going to also place another order for Thursday. This order will be for 2 QQQQ Nov 20 2010 $49.00 puts at a limit of $1.58 contingent on QQQQ dropping below $48.83. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

AMR - AMR Corp.
BAC - Bank of America Corp.
GTC - good til cancelled
QQQQ - Powershares QQQ Trust ETF

Labels: call options, contingency price, opinion, option strategies, prognostication, put options

Updated: 2010-10-07 00:21:27 EDT