So today was finally the first day free from exams, homeworks, and papers!
I am officially on break…
That being said I got my hands dirty today with some weekly options.
BIDU – Baidu
Well I played this one pretty technical today. I was on my dads computer trying to show him how I trade and run around with TOS software, so I didn’t have things set up just like I like them, but still managed to make a trade.
I was watching BIDU this morning at the 98 level. The chart below shows 3 days with 5 minute candles. This thing has been taking a nose dive lately and had held up $98 dollars very well on several re-tests. This morning he was looking week and trading right around 98…
My plan was to get short if it started to hold under 98 with good volume.
Turns out he fails 98 and goes for a nose dive. I was pissed that I had missed my entry, so I watched and waited for some kind of pullback. On the 5 minute doji I was trying to get a read on the tape and see how hard he would bounce right at 96.50.
I decided to jump in when he just could NOT bounce and the market was also looking weaker.
I bought the BIDU 95 Weekly Put
Sure enough she tanked hard so I covered quick taking a nice 50% in 10 minutes, not bad!
Next play of the day was CHK
Some oil and gas play that got steam on Friday after hours, after news came that Carl Icahn would be investing billions in this company.
Monday comes and CHK gaps up big.
I kept my eye on it today and wanted to see it around the 25 level. It trended back up to 25 so I bought the January Monthly 25 call at around .77 cents
The breakout failed and I just got stopped out trying to wait for the re-test, no harm done.
Thats the frustrating thing about PDT, they only give you 3 trades out of every 5 days, so I couldn’t risk getting back in this thing , nor was I even at my computer after 12. Turns out CHK ended nicely at highs on the day and should see a nice gap up tomorrow.
Overall, great day today