Meant to post these when I bought them ....
MCD SEPT 06 35.00 P 2@1.85
JNJ JAN 07 60.00 C 2@4.00
ELX OCT 06 17.50 C 2@2.15
MCD SEPT 06 35.00 P 2@1.85
JNJ JAN 07 60.00 C 2@4.00
ELX OCT 06 17.50 C 2@2.15
Current position ...
- Thread starter Redfish
- Start date
ELX really took off today .... up by 0.75 ... not much for the stock but my option is now at 2.85 ... 33% return in less than a week(less comm.) Should I bail or wait a while.... really feel it will bust the 20.00 mark before Oct.
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
After looking at this a little further, I believe you should take the profits. On my options, I like to look at the chart to see where support/resistance is for get in/out signals (not whether or not to own them). Anyway, this stock is at a resistance point. Could go up or down at this point. I would take the 33% profit and pat myself on the back for a good trade.
In the past, would've gotten greedy .... cashed out @ 2.95 this morn per dawgball suggestion...need to look for something else.
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
I hope this doesn't sky-rocket now. If you like the stock mid to long term, I would keep a close eye on it for another short term trade. This stock seems to have a nice window tat it is currently trading in. If it pops thorugh this resistance on heavy volume, you may be able to get another quick hit.
If it goes back down to the strong support level, then you may want to watch it and get in for a nice, small move back up to its current level.
I probably shouldn't have tol you to get out. i don't wan to influence your trading to that degree.
Good luck.
If it goes back down to the strong support level, then you may want to watch it and get in for a nice, small move back up to its current level.
I probably shouldn't have tol you to get out. i don't wan to influence your trading to that degree.
Good luck.
Nope ...totally my decision...can't count times I've earmarked to get out a at specified level which subsequently hits within a week or so .... get greedy thinking its going to climb more and end up losing it all. Not gonna complain about a 37% return...thanks for the push.
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
I'll give my free take on the other two as well, and I am probably over-charging at that rate!
I think you are in the perfect expiration month for JNJ. My take is that JNJ will be back up near the high of $68-69 within the next 6 months. At that point, I would suggest taking profits. If it happens then your option should be worth around $10-12 which includes $2-4 of time value for the remaining 6 months. That's not a bad target (300%) IIIFFF things go right.
MCD -- I would be looking to get in and out of this one for a quicker profit. They have been really doing well with numbers, but I would look for a $2 move in the stock over the next 2-3 weeks and get out with a nice double. I would keep a close eye on news right now because any bad news could send this stock below your strike price for a few months at least.
All three (including the one already closed out) look like great picks to me.
I think you are in the perfect expiration month for JNJ. My take is that JNJ will be back up near the high of $68-69 within the next 6 months. At that point, I would suggest taking profits. If it happens then your option should be worth around $10-12 which includes $2-4 of time value for the remaining 6 months. That's not a bad target (300%) IIIFFF things go right.
MCD -- I would be looking to get in and out of this one for a quicker profit. They have been really doing well with numbers, but I would look for a $2 move in the stock over the next 2-3 weeks and get out with a nice double. I would keep a close eye on news right now because any bad news could send this stock below your strike price for a few months at least.
All three (including the one already closed out) look like great picks to me.
- Feb 12, 2000
- 10,652
- 39
- 48
- 50
I have to say that I don't like a Put on MCD right now. I think your downside target for the stock is at $34 with a potential to continue the strong uptrend that started in November.
I should have read a little closer before commenting above. I thought you had calls on all of them.
Good luck.
I should have read a little closer before commenting above. I thought you had calls on all of them.
Good luck.
Probably could have waited but decided to take the money & run......cashed out the McDonald's PUT @ 3.10 for a 67% return.
good call on MCD Redfish, I have a long position on the stock, have a good profit on the stock, (which is the exception in restaurant stocks).
MCD sales numbers have been very good on a monthly basis. has been a very weak market as the numbers were very good. especially in int. markets which have been an area for concern, however the stock hardly moved on the news.
May Comparable Sales
------------------------------------------------------
Month-to-Date Year-to-Date
Percent Increase/(Decrease) 2006 2005 2006 2005
-----------------------------------------------------------------
McDonald's Restaurants* 4.5 1.8 5.3 3.7
Major Segments:
U.S. 3.4 4.2 5.4 4.9
Europe 4.9 (1.4) 4.1 1.2
APMEA** 6.5 (0.6) 5.0 3.5
-----------------------------------------------------------------------
May Systemwide Sales
-----------------------------------------------------------------------
Month-to-Date Year-to-Date
As Constant As Constant
Percent Increase/(Decrease) Reported Currency Reported Currency
-----------------------------------------------------------------------
McDonald's Restaurants* 6.2 5.5 4.5 6.3
Major Segments:
U.S. 4.1 4.1 6.2 6.2
Europe 7.0 6.0 (0.6) 5.2
APMEA** 6.6 8.5 2.2 7.1
thanks
selkirk
MCD sales numbers have been very good on a monthly basis. has been a very weak market as the numbers were very good. especially in int. markets which have been an area for concern, however the stock hardly moved on the news.
May Comparable Sales
------------------------------------------------------
Month-to-Date Year-to-Date
Percent Increase/(Decrease) 2006 2005 2006 2005
-----------------------------------------------------------------
McDonald's Restaurants* 4.5 1.8 5.3 3.7
Major Segments:
U.S. 3.4 4.2 5.4 4.9
Europe 4.9 (1.4) 4.1 1.2
APMEA** 6.5 (0.6) 5.0 3.5
-----------------------------------------------------------------------
May Systemwide Sales
-----------------------------------------------------------------------
Month-to-Date Year-to-Date
As Constant As Constant
Percent Increase/(Decrease) Reported Currency Reported Currency
-----------------------------------------------------------------------
McDonald's Restaurants* 6.2 5.5 4.5 6.3
Major Segments:
U.S. 4.1 4.1 6.2 6.2
Europe 7.0 6.0 (0.6) 5.2
APMEA** 6.6 8.5 2.2 7.1
thanks
selkirk
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Now what do I do.......... JNJ stock is at 68.17 and my two call options are valued at 8.50 Think the stock has finished its run should I.....
a) cash out both calls
b) cash out one call to cover my intial investment and let the other one ride it out
This is probably small potatoes for most in this forum...would appreciate any comments...thanks.
a) cash out both calls
b) cash out one call to cover my intial investment and let the other one ride it out
This is probably small potatoes for most in this forum...would appreciate any comments...thanks.
Small fish big fish don't matter. Any time you can protect a postion take some money home thats good. It gets down to that fealing in your gut. Good play.
