CME puts, GOOG Puts

I've got some CME and GOOG puts here that I am considering one month out and one strike OTM. CME is working beautifully inside of the penant and will continue to coil going into next week before it breaks out. I don't really have a say in the direction as long as the move is big (which is what I expect) either way.

CME closed out today

Closed out of the CME position today for $34 a share. That's a gross profit of $14 per share for 3 days worth of price action. Congratulations to those who took the trade. Please post your comments and do let me know if you took the trade and made money.

I think CME might take a breather here. I would necessarily want to go short just yet. Let a day go by atleast to see what happens. It did close right off the converging resistance. Here's the chart:



As this coil gets tighter, volatility will start building up and we will see these premiums gain more value. Although I felt comfortable closing out the trade today, I think the next signal might not come until we break out of this consolidation, which would give us a low risk/high reward opportunity.

So in my opinion, hang tight and let the bulls and bears fight!
Once it's all said and done, the stock will have clear direction in the near term (I have my eyes on the May 540 straddle)

Loving CME right now

CME gapped open higher today and closed the day on a very strong note. I am going to pick up some more of those calls that are in the money now. Love it!

The market is certainly on a bullish tone for the short term.

CME looking good

Hey folks!

It's been a tough month balancing work, traveling, and trading. April is looking good so far though so I will try and keep on top of posting these blogs (and awaiting your comments).

CME is still working out great though. If you recall, I had opened up a condor for Apr 500/510/590/600 for an avg. fill price of $3.73. I just checked and the entire condor can be purchased back for $2.20. That is a gross profit of $1.53 per share!
I am personally going to hold as I see CME in a beautiful penant formation sitting right around support. Here's the chart:



CME looks like a good buy right now and a stop below the fib retracement is a good level for a stop loss incase the long positio does not work out.

Here's a look at the implied volatility levels for CME from ivolatility.com, shows that IV is low enough to feel comfortable buying a call:



One can look at May 540s for $20. These are expensive options so you'll have to baby them.

I also sold the Apr GS 195/200 Bull Put spread for $1.00. GS is goldman sacks.

PALM calls were purchased as well on friday before market close for $3.30. PALM is a takeover target and the news could breakout any moment now. This trade is a total sot so we will see what happens.

Want more Google

Google is looking like a great short here. It has yet again retested Resistance 4 (as shown in the chart below).



Also, if you followed my analysis on GOOG weeks ago, you would've made a killing. Here's the post from Feb 25th:

http://ironpi-trades.blogspot.com/2007/02/cheaper-goog.html

If you missed it then, you might be able to catch a move down now, once it closes below 450. Next stop, 435 or so.

CME is looking like a great short here as well:

Closing GOOG 500/510 Bear Call

Just put an order in for tomorrow to close out the Mar 500/510 bear call spread for GOOG that was originally sold for $1.00 credit. The order is placed to close the trade for $0.15. We'll see what happens.

What a day....

CME sell order that I had placed yesterday got filled today.....although since there was a gap down...the puts got filled at $54...OH MY GOD!!!

Remember....these puts were originally purchased at $16.50.

I went short FXI yesterday. In case you did not know what FXI is, it is the Chinese iShares. And we all know what caused today's sell-off. CHINA!!!

Anyways....I had bought the FXI March 103 puts for $1.40. I sold them within the first 10 mins or the open for $5.60. That's over a three bagger. Another excellent trade with amazing timing!!