Portfolio Update

On April 2nd, I posted that I would be resetting my order to purchase Call Options of BRCD that would be set to expire in October 2010 instead of this July. I did so, and on April 6th the contingency was triggered, but my trade order did not get executed. It actually was cancelled due to a suspected user error, my own. I apparently set the limit order way to high; and as a precaution, my online broker, TradeKing (www.tradeking.com) cancelled it for my own good and sent me an email notifying me of the situation. Wasn't that nice of them?

Anyway, I resubmitted it that night, with a reasonable limit price, and the following day, April 7th, the contingency was triggered again. As of now I am the owner of 3 BRCD OCT 10 $6 Calls. I have a minimum target of $7 before July.

In other news, the ETF SLV has been moving up in bursts with small movements throughout the day. In the current week, though, the price movement has been narrow but without the bursts. It may be leveling off and calling it an end of a cycle, but at the same time it is dangerously close to $18. If it closes above the $18 strike price, I will probably have to relinquish my shares. The result will only be about a 5% profit after commissions, but the good news is that I also get to keep the premium I sold the Call option for and I free up all of that capital for more trades. There are only 9 days left, so I will just sit and wait.

As a quick note, I have been monitoring the chart of ISPH for a few weeks now. Since I am only paper trading it, there is no big concern for me. The thing about ISPH is that it looks like it has created a head-and-shoulders chart pattern and may soon take a dive. I suspect that if it does, it will drop to about $5. If there was more capital in my paper trading scenario I would buy more than just a few Put options and capitalize on the small but very likely move. That is my opinion, you can take it or leave it.

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