graybids

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

BIDU 5 minute:

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.

However.. take a look at the rest of the day here on 5 minutes:

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

Today took a trade in NFLX, too sum it up I was in a little too late , but got out nearly perfect.

This morning NFLX had some negative news about analysts downgrades and the CFO leaving, so the stock dropped after hours quite and pre market quite a bit. I though the reaction was bit oversold so I was trying to play a bounce.

I was trading the Weekly 190 calls…

Heres a 3 min chart on how I played NFLX: I bought and sold twice on it, netting a ~ 20% gain, playing with small size though.

and heres the 190 weekly chart:

I played it on the red line break, first time the break failed and I got stopped out, and the second time it , broke and ran for a bit.

Decent play but there were much better ones to make today so far like GLD