After a great weekend of advanced technical trading, I enter the week with a new found exuberance for the Markets. I am considering a long term calendar on Mr. Softy now that it broke it basing pattern on Friday. Also looking at making another IC trade on the RUT.
29OCT07 - I did take a peak at the run to resistance of CROX. An oldie but goody, I am looking for a little more snappin' action. The Nov's have 95% imp.vol. right now due to upcoming earnings and the Fed announcement on Wend. I am short the $80 calls as the ceiling and the $65 puts as the floor. I must remember to keep enough capital on hand to close these shorts if the cage breaks and this thing comes after me like a Wild Kingdom outtake.
I run some risk, on paper a 1:1 within my acceptable loss amount if it totally falls apart. The bigger risk is if this thing takes off and I don't cover the short call so watch for that closely. Better yet, place a buy stop around $80 and look for increased momentum on the breakout.
13NOV07 - How quickly things can change. HELD OVER EARNINGS!!! AGAIN!!! Wasn't watching the downside very much. Sucka gapped $22 BUCKS! Bought back the call side for $0.05 and the seperately sold the calls for a total loss of $380.
DON'T HOLD OVER EARNINGS!!!
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