Texas Instruments Position closed at 11% Gain

Texas Instruments position was closed later in the day for 11% gain in just three days. You will still have a chance, probably at a better price, if you didn't execute it yet.

Short leg of SPY spread (Feb 03) will expire tomorrow. Either we will close the position (Target $3.15) or rollover to the next week for even greater profit. The best gains will come if SPY settles at 133. It means that a slight upside will bring more gains in SPY, and a down market should help EMN position. At the market close today, all positions are in money (or at break even) and I am expecting over 10% gains tomorrow.

I hope executions were easy today for all of you. Above 18% gains tomorrow should close the week in the positive territory. 

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Alert 35 - SPY Diagonal Spread for Next Week

SPY Diagonal Spread for a debit of $2.38

(Sell FEB 10 '12 133 Put

Buy FEB 17 '12 136 Put)

Comments: I am expecting beginning of a downtrend next week. This position will be profitable upto SPY 134 by Feb 10.

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Alert 34 - SPY Diagonal Spread

SPY Diagonal Spread for a debit of $2.93 

(Sell FEB 03 '12 133 Put

Buy FEB 17 '12 136 Put)

Comments: Already a similar position (#32) exist. I have doubled the position.

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DOW Overhead Resistance at 12750

It was a mixed day. Market started the day higher, but couldn't sustain DOW 12750 levels. Market was led by technology and banks. Money is rotating between sectors, so there are opportunities, but overall the market is not rising beyond the overhead resistance. Fantastic-5 (see my post on Friday) is historically bullish. I expect this week to be range-bound, but be prepared for a pullback starting next week.

STX led the tech stocks by gaining approximately 20%. Earlier in the day, I thought to hold STX for a potential pullback, but later overcame the emotions and decided to exit the trade. Over 15% gain on CMI in 1-day was good enough reason to close the position. We are still making money for the current week (15% booked gains)!

Two trades are initiated today anticipating flat to bearish market action. Part of the reason to initiate puts was to balance long position on Texas instruments.

All open positions are in the money. TXN is leading the gain, and my target is $2.20.

Talk to you tomorrow.

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Alert 32 - SPY Diagonal Spread

SPY Diagonal Spread for a debit of $2.93

(Sell FEB 03 '12 133 Put

Buy FEB 17 '12 136 Put)

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Closed Positions 29, 30, 31

Please see MyWealthyOptions.blogspot.com for details.

An order for a credit of $2.20 for Texas position is placed and site will be updated after execution.

We are back in cash. 

Open Positions Update

Position # 19 (VIX) - trading at $3.20 (bought at $3.15), target $4.0

Position # 28 (TXN) - trading at $2.16 (bought at $1.99), target $2.20

Position # 29 (STX) - trading at $1.15 (bought at $2.06) - STX reported better than expected results, which pushed the stock higher by 17%. This position is sitting at a loss of 45%. STX Put option is for the month of June. Let us continue to hold.

Position # 30 (CMI) - trading at $5.15 (bought at $4.40) - CMI will report the financial results tomorrow morning. To avoid STX kind of situation, I will consider selling Feb 105/110 call against this position to manage risk.

Position # 31 (STJ) - trading at $2.50 (bought at $2.55)

Overall, open positions are sitting at about 15% loss (compare with 489% gains in January). This represents the power of risk management in the portfolio. 

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