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Vertical Spreads for Aggressive Growth
- Thread starter Cache Landing
- Start date
Quote from rallymode:
what do u think happens to AAPL, back to 62-65ish? I almost sold some bear calls yesterday but thought we had just one more push to the upside, before the selloff.
Looking at the tape, its getting quite ugly out there.
Back to 67 first, stalling there for a few days, then continuing down to 64. Then I think 64 is a good place for a bull put.
On a similar note, I see MRVL pulling back to 56-57ish.
AMD getting stuck on that 20SMA as usual. A drop below 32 is bad news for them until that 200SMA.
AMD getting stuck on that 20SMA as usual. A drop below 32 is bad news for them until that 200SMA.
Today's Action
STO 4 MRVL MAY 52.5/55 p @ 1.00
Year to Date P/L
Account Value: $11,103.50
YTD Gross P/L: 1,330.00
YTD Commiss: 226.50
YTD Net P/L: 1,103.50
YTD % P/L: 11.0%
Took the opportunity to open a bullish position in MRVL on the pullback. I'm also keeping a close eye on either PAAS or NEM.
On a different note, my DNA position isn't in very good shape right now. Earnings are coming out tonight. I intended to hold the position through earnings, so we'll see what happens. I might have to make some serious adjustments/hedges.
STO 4 MRVL MAY 52.5/55 p @ 1.00
Year to Date P/L
Account Value: $11,103.50
YTD Gross P/L: 1,330.00
YTD Commiss: 226.50
YTD Net P/L: 1,103.50
YTD % P/L: 11.0%
Took the opportunity to open a bullish position in MRVL on the pullback. I'm also keeping a close eye on either PAAS or NEM.
On a different note, my DNA position isn't in very good shape right now. Earnings are coming out tonight. I intended to hold the position through earnings, so we'll see what happens. I might have to make some serious adjustments/hedges.
Uh ohh... past experience tells me that a DNA rally just before close is not a good thing for my position.:eek:
I don't understand your comment. If you have a DNA bull call spread Apr 75/80, doesn't it mean that you max out your profits for any price above $80? Isn't it what you wanted to happen? As the expiration approaches the spread will get closer to the $5 maximum (if the price doesn't drop bellow $80).
I assume you mean by a bull call spread:
- bto Apr 75 call
- sto Apr 80 call
I assume you mean by a bull call spread:
- bto Apr 75 call
- sto Apr 80 call
Quote from Cache Landing:
Uh ohh... past experience tells me that a DNA rally just before close is not a good thing for my position.:eek:
Quote from cnms2:
I don't understand your comment. If you have a DNA bull call spread Apr 75/80, doesn't it mean that you max out your profits for any price above $80? Isn't it what you wanted to happen? As the expiration approaches the spread will get closer to the $5 maximum (if the price doesn't drop bellow $80).
I assume you mean by a bull call spread:
- bto Apr 75 call
- sto Apr 80 call
Your analysis is correct. My comment was based on my experience in which a company that rallies really hard against the market just before an earnings release, drops once the news comes out. I don't know if this is due to overzealous expectations or something else, but it does seem to frequently be the case. Perhaps the buy the hype, sell the news mentality.
As I write this, DNA is down after hours about $1.50
I see ...
Quote from Cache Landing:
Your analysis is correct. My comment was based on my experience in which a company that rallies really hard against the market just before an earnings release, drops once the news comes out. I don't know if this is due to overzealous expectations or something else, but it does seem to frequently be the case. Perhaps the buy the hype, sell the news mentality.
As I write this, DNA is down after hours about $1.50