Today, I entered two option trades. The first was 5 C Nov 20 2010 $4.00 calls at $0.25 after C climbed over $4.10. I followed this entry with a stop of $0.18 to minimize my losses to approximately 25%. As of the close. I am still in the trade but only by $0.01 as the close was at $0.19.
The second trade was 3 BRKS Nov 20 2010 $5.00 puts at $0.20 after BRKS dropped below $6.49. I am following this entry with a stop of $0.15 to minimize my loses to about 25%. I have concerns that I was the only player on this trade. And although the underlying stock moved in my favor, unlike C, I might get stopped out before it really has a chance to move due to the wide spread in the option bid and ask prices and the low volume.
My previously entered trades are still open. My long BAC Oct 16 2010 $15.00 put is not yet profitable but the underlying is going in my favor. My short CPLP Dec 18 2010 $7.50 puts are continuing to hold since there seem to be buyers of them at higher prices than I sold sold mine despite the underlying has been relatively flat for weeks. I still want the stock if it drops to $7.50 so I am in no rush to BTC my position. However, if it does clime towards $10, I have an order to sell a short term call at the $10 strike. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BAC - Bank of America Corp.
BTC - buy-to-close
BRKS - Brooks Automation, Inc
C - Citigroup, Inc
CPLP - Capital Product Partners, LP
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