Wang’s Happy Trading

It was a flat day, a day for the market to breathe. The Dow closed down 16.74 points; SPX was up by 7 cents; and, Nasdaq slid 5.4 points. Between yesterday and today, we locked in some pretty good profits on RIMM, BIDU, and GOOG:

RIMM Oct 85 calls, RFYJX, at $6.2, +12.7% (partially out)
BIDU Oct 220 calls, BDUJD, at $17, +15.6% (partially out)
BIDU Oct 220 calls, BDUJD, at $17.5, +29% (partially out)
BIDU Oct 220 calls, BDUJD, at $20, +36% (partially out)
JASO Oct 40 calls, QJPJH, at $4.2, +61.5% (partially out)
BIDU Oct 220 calls, BDUJD, at $23, +56.4% (all out)
GOOG Oct 550 calls, GOPJY, at $10.8, +11%
RIMM Oct 85 calls, RFYJX, at $7.4, +34.5% (more out)
RIMM Oct 85 calls, RFYJX, at $7.1, +29% (all out)

I also cashed out the remaining (I had previously cashed a part of the position out at a +17.6% gain) PTR at a loss, due to the morning news that Buffett had reduced his stake in the company from 10.16% to 9.72%. It’s not a big change and only worth $136 million.

PTR Sept 145 calls, PTRII, at $3.1, -64.5% (all out)

It turned out to be a non-event so far. PTR bounced back and closed only down 5 cents, at $145 even. CEO, on the other hand, rose to a new all-time high, at $132.08, up +4.68 for the day! I’m keeping an eye on PTR and might roll the above trade into Oct 150 calls!

Here’s the snapshot for the market close:

The big news today was that oil set a new record high of $80.18 a barrel! Both USO (oil) and UNG (natural gas) made solid gains. BTK (biotechs) continued to be strong. SOX (semiconductors) was weak after TXN narrowed its 3Q forecast.

SPX

SPX closed flat, at 1471.56. The good news is that its 20-day MA has caught up with the 30-day MA. I think the market is in a position to have a good rally tomorrow to get the 20-day MA above the 30-day MA!

Nasdaq

Nasdaq shows the similar development. Its 20-day MA has also caught up with the 30-day MA, and both of them are curving up!

UBS initiated coverage on FFIV today at a “buy”. FFIV’s took a dive earlier this month when they bought Acopia for $210 million, in cash. They have recovered nicely since. FFIV closed at $40.15, up +2.82% for the day. SYNA jumped to a new all-time of $44.79 on the news that AAPL is using the company’s technology in iPods. The new price target on SYNA is $60! SYNA closed at $42.73, up +3.84%. SOHU hit a new 52-week high today of $36.96 on no apparent news. The Chinese portals/online game sites seem to be back in fashion: SINA, SOHU, NTES, SNDA.

Good night and HappyTrading! ™

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