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Technical trader update

February 21st, 2011 · No Comments

Surprising even ourselves..
Although we’ve advised selling short term (Feb) out of the money calls (whatever you would have picked, they would have expired worthless and you’d made 100% profits on all of these), but outright short positions would have been quite profitable as well:

  1. BSET at $7.8 (Feb.8), is now at $7.29 for a profit of 6.54%
  2. TA at $12.36 (Feb.11) is now at $9.32 for a profit of 24.6%
  3. LULU at $84.31 (Feb.14) is now at $82.12 for a profit of 2.6%
  4. PAY at $48.18 (Feb.14) is now at $46.86 for a profit of 2.74%.

We would say, so far, so good. A bit lucky with the disappointments at TA perhaps, but the main aim was catching overbought shares at the point where the rally stalls, as that is the best moment for selling short-term, out-of-the-money calls.

Writing out of the money puts (which will be covered because of the short position) could further enhance profits, especially there were there are weekly options.

Tags: Technical Trading Ideas