12-12-07 : Trade setup summary

Tonite we are looking at 3 possible trade setups :

(1) RIMM - Put
(2) BSC - Call
(3) BIDU - Put

If market is bearish, we go for RIMM put.
If market is bullish, we go for BSC call.

We decide at 12am. TICK and TRIN must support our market condition.

All the best to all option traders tonite. Adieus !

12-12-07 : BIDU failed to break above 400

Break above 400 has been the aim for last few days, and it consistently failed. Last nite it broke 400 and went on to 410, only to find itself dropping below 380 box btm support. MACD cross 0 down sharply. The selling force is strong at 400 level. I think its bearish for now. May go for a put tonite if cont to be bearish. May drop to 350.

Trade setup
----------
Option : Jan08 $370 Put
Price : $25.00
Cut : $23.00
Profit : $29.00
Duration : 3 days
Risk:Reward : 1:2

Daily
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15min
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12-12-07 : BSC is due to go higher?

Break 100, retrace back to 100. Now ready to go higher?

We will see. Get ready for a call.

Trade setup
============
option : Jan08 $100 Call
Price : $6.60
Cut : $5.60
Profit : $8.60
Risk:Reward : 1:2
Duration : 5 days

Daily
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15min
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12-12-07 : MA may fall. sell call now.

MA is still within up channel. For the conservative, can still hold on the call.

But for me, i take the MACD falling below 0 in 15min chart as warning sign to flee. Thus I flee first. Talk later.

While i will sell my call, i will not buy put, since its still within up channel.


daily
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15min
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12-12-07 : AAPL - Retracement or reversal?

Our AAPL is now at the btm of up channel. In fact, it has broken the channel just a bit. 15min chart reveals the MACD is -4, a bit oversold.
So is it a reversal down? or is it a retracement?

We will see tonite. If it fall out of channel completely (15min chart cdl), then we sell our call. If not, hold on to the call.

daily
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15min
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12-12-07 : RIMM is a put !

RIMM has broken 100 down in daily chart. For 15min chart, MACD cross below 0, and thus its time to put.


Trade setup
------------
Option : Jan08 $100 Put
Price : $11
Cut : $9
Profit : $13
Duration : 3 days

daily
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15min
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12-12-07 : GS diamond breakout - downside

Its surprising to me the diamond breakout to the downside.

But it happened. So we re-act accordingly. I will not get a put coz 210, and 200 are
both supports. Its too near 210 support now.

For calls, I would have cut at 224, as its a 15min strong support. which was broken up at early hrs, and broken down again later. Price cant go pass the diamond defined upper wall.

What would I do now ? I will wait for a rebound from $210 or 200 level. $200 will be safer. Will leave it untouch for now. Market is very choppy and non trending.

daily
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15min
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12-12-07 : GOOG fell out of up channel

GOOG fell out of my up channel, and thus I will sell any GOOG call.

I would have cut loss @ 708 area. when it fell out of the channel. I would not have seen my call go all the way down till 699. Thus once again, my channel strategy has proven to be a good cut loss method.

I am still somewhat hopeful GOOG will go to 740. This may just be a slight retracement. Whatever it is, until it get back to the channel, I will not touch it.

daily
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15min
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12-12-07 : Dow Jones down again

Last night DJ is down big. From 13800 level down to 13430. Down about 370 pts.

For those who short the indice using CFD, of coz its $370 profit to pocket.

The indice falls out of my up channel at 13724. And that is the pt i will cut loss.
Thus loss is contained at 13800 - 13724 = $76.

Cdl wise, its a bearish engulf. Not too optimistic. I think a slight rebound is due, but if it will cont to climb up to 14000 is a question. Need to see tonite's movement to decide.

For now, i will leave the DJ untouched.

daily
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15min
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