18NOV07 - Picked up on OXY from the Option Addict watchlist and it triggered a breakout the day before while the overall market (SPX) looked like it was bouncing. Got in on 07NOV07 @ 6:35 am with a OTM DEC $75 call and it fell from there. I sold the NOV $75 call for $0.40 and bought it back for $0.05 two days later as the stock tanked along with the market. My cost basis is now $2.75 and I could sell the DEC $70 calls to break even if it stays bearish. But the market and the stock is oversold and has begun to bounce off support at $66 with resistance near by at $70 with the price at $68 right now. There is a descending triangle on the 10 day hourly so look for the break of $70 to confirm the short downtrend is broken.
21NOV07 - after the recent rally back up to resistance, I sold the DEC $70 call this morning as a theta hedge during the next 4 days. Shortly after selling it, the price rallied hard to the upper resistance at $74 exact. I felt that I had messed up and capped/extended my loss but saw the overall market was still weak. It closed lower on the day and is showing a shooting star at resistance. Look to sell the short $70 call at support or at a close above $74 resistance.
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