Wang’s Happy Trading

Last weekend, I said,
“For the new week, I think the market is ready to bounce. What we need to see is a few days of continuous rally and see if the market can catch the daily upper BB. There will likely to be times when the market needs to vent, but breaking above the immediate resistance (SPX 1340; Nasdaq 2300), and staying above, could turn this resistance into a support. The market has been under pressure for recent months that started with the financials. Now that the financials are making a strong comeback, they could be the leading indicators to watch.”

The market was strong in the early part of the week, rising above the immediate resistance level (SPX 1340; Nasdaq 2300). But, the financials were weak in the latter part of the week, and the market retreated back to below the above-mentioned levels.

On Monday, the market jumped as JPM increased its buyout offer for BSC by 5-fold! The techs were particularly strong. On Tuesday, the market was slightly on the positive side, as the metals and agricultures took the lead. On Wednesday, the market started to slide as the financials got weaker. On Thursday, the overall market still couldn’t find much strength as the financials sector continued to exert pressure on the market. However, the solar stocks seemed to be soaking up some buying. On Friday, the market was still weak, but, saw strength in certain pockets: steel plays, certain agriculture plays, natural gas, and Chinese ADRs.

We continued to do pretty well, especially considering how crazy the market was:
BIDU ($250.26)
BDUDW, APR 270 calls, at $9.5, +40% (partially out)

STP ($41.05)
STPEH, May 40 calls, at $5, +25% (partially out)

SPWR ($76)
QSUDO, Apr 75 calls, at $6, +33%

LEH ($40.2)
LYHDI, April $45 calls, at $1.6, -76.1%

RIG ($138.39)
RIGDG, Apr 135 calls, at $7.2, +16%

FSLR ($220.4)
HJQDD, Apr 220 calls, at $17, +26.9%

RIMM ($111.2)
RULDB, April $110 calls, at $8.15, +40.7% (all out)

RIMM ($110.18)
RULDB, April $110 calls, at $7.8, +34.7% (more out)

RIMM ($108.85)
RULDB, April $110 calls, at $7, +20.9% (more out)

We gave back some gains made in LEH from last week. Too many rumors and speculations surrounding some of these financial companies. Other than that, everythings was in the GR$$N.

The trades left open this week were:
BIDU ($239.3)
BDUDW, APR 270 calls, at $6.8 (open, partially out)
Friday close: $7.6; unrealized gain/loss: +11.8%

STP ($39.38)
STPEH, May 40 calls, at $4 (open, partially out)
Friday close: $5; unrealized gain/loss: +25%

Have a fantastic and happy weekend, everyone!
HappyTrading! ™