My Trading > My Trading Journal > August 22, 2012

My Trading Journal

August 22, 2012

10:54 pm (PST)


ANN traded down today - less than 1%. Only a 29 cent pullback after a 7 dollar rise in 3 days. But the important thing is that the stock made a reversal. It traded up and closed down. It looks promising going forward. See the chart below with today's drop in red.


With Sony near it's 25-year lows, I wrote 100 of the September 10/11 put spread at 0.12. This trade makes me nervous for 2 reasons. First, Sony is a company with deteriorating fundamentals. And, second, I lost about $17,000 on a 14/15 put credit spread I wrote back in May. But this is not a large trade. It is only about a quarter of what it could have been. You can see in the chart below the drawn in lines for the expiration date and strike price for the spread.

Dell is in a similar situation - near multi-year lows. I wrote 100 September 10/11 put spreads at 0.15. I had already written a 100-lot of the same spread for the same price back on August 8th. I probably won't mind getting exercised on this spread if I have to. You can see the chart below the drawn in lines for the expiration date and strike price for the spread.

Both of these SNE and DELL trades are roughly 7% out-of-the-money.


There were 2 other credit spreads I tried to put on but didn't get filled. One was selling a 150-lot of the December 10/11 put spread at 0.40 on Staples (SPLS). The other almost-trade was an order to sell 65 September 62.50/65.00 call spreads at 0.22. See the chart below.

UPDATE: Facebook. Although I posted yesterday about the failed re-test of the 20 level, it is also possible that Facebook could be setting up for a head-and-shoulders bottom - and the break to a new low of 19 could have been the final bottom. The next couple of days will probably tell. See chart below.

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