It has been a week since my last post and nothing has changed in my portfolio until now. Friday is option expiration and I have one outstanding Sold-To-Open (STO) Call option out on my iShares Silver Trust ETF position (SLV). The Call option is for the $18 strike price and the ETF is at $18.07 at the close of today's trading day with an asking price that is higher than the current price and for a larger volume than the bid price. It certainly looks like I will be called out of my position by end of day on Friday.
It has been a really good run on the ETF and I am averaged down from my initial 10 share purchase so that I will make a profit on the transaction of about 6%, not including the premium I sold the option for. It is my opinion that SLV will probably pull back after option expiration so I will just have to wait and see if it drops and holds below $17.50 until the funds clear again. Hurray for me that it isn't a wash-sale if you make a profit.
I still have paper trades in effect and I am making a change to one of them today. Sprint (S) has done very well but there is only one month left until the expiration of the Call option that I "bought" on it, this means that unless it goes up further, time will decay it's value until all that is left is intrinsic value, or the amount between the strike price and the current stock value. Unfortunately even that isn't guaranteed. Since there is only 5 cents of additional time value left, I am going to take my "profit". It is absolutely possible that S could go up another 20 to 30 cents or more, but I don't have to take the risk.
After these two changes this week I am left with my stock positions of Capital Product Partners, LP (CPLP); EV Energy Partners, LP (EVEP); my Bought-To-Open (BTO) Call options on Brocade Communications Sys Inc. (BRCD); and my paper trade on Inspire Pharmaceuticals, Inc. (ISPH). ISPH did the head-and-shoulders chart pattern I expected but stopped dropping after passing the neck of the pattern. It looks like it is consolidating for another move up. If it does move up above the downward trending resistance line I have charted with a current price of $6.25, I may buy a Call option on the stock to attempt to hedge against the losses in the stock. And if the stock closes above $6.90, I will sell the stock to close off all of my paper trading. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Showing posts with label chart patterns. Show all posts
Showing posts with label chart patterns. Show all posts
Thursday, April 15, 2010
Tuesday, January 26, 2010
Portfolio Update
CPLP had a bearish day on less than average volume. However, the low of the day was better than yesterday, suggesting that there is bullish interest, but the lack of volume and the value still closing lower suggests otherwise. The Stochastic and MACD indicators are both still pointing down with no sign of reversing at the present time.
EVEP had a bullish day on slightly better volume than average. The price movement of the past couple weeks looks like a charting pattern called a cup & handle. This pattern suggests a breakout. We also have the Stochastic indicator continues to climb above it's signal line and the MACD indicator has climbed to the point of intersecting with it's signal line. After this additional day of price movement, I think it will continue to climb. That is my opinion, you can take it or leave it.
SLV had a bullish day on better than average volume, but only after take a dive at the open. In the end, despite gaining back much of it's opening loses, it closed lower than the previous day's close. I am glad I listened to the contradiction of the Stochastic and MACD indicators, which are both still pointing down. However, today the price movement is slightly above an inclining support line I have been tracking it against. Also, the bid and ask prices are higher and narrow in spread. This leads me to believe that there is a chance of a bullish move tomorrow. I am putting an order in to buy more at this level. It won't leave me with much afterwards. But I will have enough to sell a covered call against it in the future.
ISPH, my paper trade, had a bearish day on less than average volume. The Stochastic indicator is holding a consistent decline while the MACD indicator is slowing down slightly. Also, the bid and ask prices are wide apart and bracket the price movement of the day. I still believe that the direction for the immediate future is sideways. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
EVEP had a bullish day on slightly better volume than average. The price movement of the past couple weeks looks like a charting pattern called a cup & handle. This pattern suggests a breakout. We also have the Stochastic indicator continues to climb above it's signal line and the MACD indicator has climbed to the point of intersecting with it's signal line. After this additional day of price movement, I think it will continue to climb. That is my opinion, you can take it or leave it.
SLV had a bullish day on better than average volume, but only after take a dive at the open. In the end, despite gaining back much of it's opening loses, it closed lower than the previous day's close. I am glad I listened to the contradiction of the Stochastic and MACD indicators, which are both still pointing down. However, today the price movement is slightly above an inclining support line I have been tracking it against. Also, the bid and ask prices are higher and narrow in spread. This leads me to believe that there is a chance of a bullish move tomorrow. I am putting an order in to buy more at this level. It won't leave me with much afterwards. But I will have enough to sell a covered call against it in the future.
ISPH, my paper trade, had a bearish day on less than average volume. The Stochastic indicator is holding a consistent decline while the MACD indicator is slowing down slightly. Also, the bid and ask prices are wide apart and bracket the price movement of the day. I still believe that the direction for the immediate future is sideways. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
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