August 14, 2013 Options Review Right from the get-go, on Monday, silver shares gapped up smartly. Our recommended play, the Silver Wheaton December $25 call for $175 or less, was not officially triggered. The call opened at $219 and the low trade I’ve seen since is $205, on Tuesday. The option traded today as high as $278. Congratulations to those who bought it and have the opportunity for profit. When you buy with a market order, sometimes you make nice profits and sometimes you suffer greater losses. I prefer limit orders for entry, because, with a limit order, you always know your risk. The downside of using limit orders is, sometimes your order does not get filled. If you don’t get in on this one, don’t worry. There’s always opportunity in options. Stocks slipped today, as renewed Fed taper-talk soured investor sentiment. Weakness in bonds is making their yields more competitive with equities. If institutional selling of stocks continues to rise, markets should continue to correct lower. We shall see if the 50-day moving average comes into play as support for stock prices. Open Option Positions Review The Abercrombie & Fitch August $45 put (“ANF” expiry 08-17-2013, recommended 06-23-13, triggered at $235, subsequent high at $243 on 06-28-13, subsequent low at $2 on 08-12-13) closed at a nominal value. Shares closed at $50.22. Support is at: $46.50-$47.62, $43-$45, and $39-$40. Overhead resistance is now at $50.50-$51 and $52-$55. The General Electric August $24 call (“GE” expiry 08-17-2013, recommended 06-09-13, triggered at $65, subsequent high at $108 on 07-19-13, subsequent low at $13 on 08-14-13) closed at $15. Shares closed at $24.07, looking to support. Support is at $23-$24 and $20-$21.50. Overhead resistance is at: $24.50-$25, $27, and $30-$33. The SPY September $165 put (“SPY” expiry 09-21-2013, recommended 07-14-13, triggered at $313, subsequent high at $340 on 07-16-13, subsequent low at $125 on 08-05-13) closed at $148. Shares closed at $168.74, looking lower. Support is at: $165-$168, $160-$163, $155-$158, and $150-$153. Resistance is at $170 and $173-$175. The Wells Fargo October $42 call (“WFC” expiry 10-19-2013, recommended 07-07-13, triggered at $175, subsequent high at $330 on 07-19-13, subsequent low at $144 on 07-11-13) closed at $206. Shares closed at $43.10, looking lower. Support is at $43 and $39-$41.77. Overhead resistance is at: $44-$47 and $50. The Intel October $23 put (“INTC” expiry 10-19-2013, recommended 07-21-13, triggered at $115, subsequent high at $130 on 07-23-13, subsequent low at $86 on 07-30-13) closed at $101. Shares closed at $22.57. Support is at $19-$22. Resistance is at $23.50-$26. The 3M October $115 put (“MMM” expiry 10-19-2013, recommended 07-28-13, triggered at $300, subsequent high at $325 on 07-29-13, subsequent low at $164 on 08-13-13) closed at $207. Shares closed at $117.62, down from resistance. Support is at: $117, $112-$115, $107-$110, and $102-$105. Resistance is at $118.50-$120. The Lennar November $35 put (“LEN” expiry 11-16-2013, recommended 06-30-13, triggered at $320, subsequent high at $475 on 08-14-13, subsequent low at $240 on 07-12-13) closed at $460. Shares closed at $31.66, under pressure. Support is now at $28-$30 and $23-$26. Overhead resistance is now at: $32, $33-$35, $36.55-$37.50, and $39-$40. The Facebook December $36 put (“FB” expiry 12-21-2013, recommended 08-04-13, triggered at $260, subsequent high at $295 on 08-14-13, subsequent low at $221 on 08-06-13) closed at $295. Shares closed at $36.65, looking lower. Support is now at: $35-$36.50, $30-$33, and $27-$29. Resistance is now at $38-$39 and $40-$42
Posted on: Thu, 15 Aug 2013 04:06:45 +0000
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