New Trade for the week of Feb 15th

While quickly browsing through my watch list on lazy Saturday afternoon, Chart of Cree Semi caught my eyes. Cree fell hard last month from $69 to $50 due to earnings and consolidation. After a month of staying low it looks like it is on the move and might try to fill the huge gap of almost $7. Cree has a history of falling hard and running up with fire later. So to participate in the move I would be looking at a March 52.5/57.5 Bull Call Spread with a cost of $2.55. Also with all the concerns about market being ready for a 5 - 10% pull back I might think of giving it more time to work in my favor and look at a June Sprea with a cost of 2.70. If things turnout well this trade returns almost 85% in 3 months. Take a look at the chart to see the technicals.

Let us see how this one shapes up!!

2011 Feb Trades

Today I entered long term trades in Alpha Natural resources (ANR) and Las Vegas Sands (LVS). Both ANR & LVS reported earnings last week. Earnings ok but LVS fell on revenue concerns.

As LVS was bouncing I entered a June 44/49 Call Spread for a debit of 2.32. So risk is $232 / Contract and max reward is %268 (> 100%). The reason for enetering a spread was to reduce the capital outlay and get a longer term option. Target for LVS $50

On ANR I entered a straight call of June 52.5 at a debit of $625. yes I know it is a lof of money but planning on converting it to a spread once it moves up a little. I am looking at ANR to hit $58 or $60 soon.

Let us see how the trade develops!!

Egypt Concerns

Market got clobbered yesterday thanks to the Egypt unrest and fears about the Crude Supply disruption and ability to keep the traffic through Suez canal. Suez canal is the hub of the Crude traffic with millions of barrels of crude shiiped to western countries from the Oil kings.

Any disruption of this and closure of Suez means we will see a Spike in Crude and a Energy Crisis here in US.

The Over bought market used this as an opportunity to sell off a little and may well be a star of much needed correction.

FCX - 60 min Candlesticks

FCX - 60 min Candlesticks: "

via StockCharts.com

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Am Very Depressed today!!!

FCX

Fcx has a good run up recently. Global Copper prices and demand are going up. Looking to reenter at 50% Fib level of $36 area. Target will be a retest of recent high of $46. Will enter with a Aug or Sept 45 Call.