8/1 - Swingtrades

I posted the AMGN example a couple weeks ago to discuss risk management using options vs. stock. ELN was a perfect example the last couple of days, in favor of options. I can't imagine waking up to a 30+% loss overnight and then another 50% a couple of mornings later. I'm guessing it would have cost less than $1 premium for the Aug 20 Calls but you would have capped your losses at $20.


Regarding the overall market, there have been too many crosscurrents for the recent bounce to gain any traction. The 30-min charts have been very helpful to trade low-risk trend reversals.


WM - I sold the Aug 4 Calls and rolled a portion into the Aug 5 Calls to manage risk. I'll give up $0.25 on the upside but only about $0.25-0.40 on the downside if the stock gaps open lower than $5.00.
Bought @ 4.17, Aug 4 Calls
Stop @ 3.90, moved to 4.40 yesterday
Sold @ 5.50
Profit - $0.90 on calls


Bought @ 5.40, Aug 5 Calls
Stop moved to 4.90


SINA - stop moved to 45.40. CTRP showed some support today so I may enter it next week assuming the market doesn't melt down again.


WB - stopped out at 16.90 in the AM, re-entered @ 17.50 (I hate having to do that...going to keep a looser stop)
Stop moved to 17.40



LEH - re-entered as it broke 17.00
Bought @ 17.20, Aug 17.5 Calls
Stop @ 17.40



I've grown accustomed to this happening occasionally with trading options...here's some slippage and time decay for you...


PTR - Stopped out
Bought @ 132.26, Aug 135 Calls
Stop @ 133.00
Sold @ 132.87 - higher than cost
Loss - $0.55 on calls