Bought AMD March11 $9 Put at 33 cents
not a believer in the m&a rumour… but dont wanna get short squeeze by shorting either…
buying a 1 month put is the only solution to get downside exposure with limited risk
Bought CSCO 1×2 Feb11 $22/23 Call Spread for $0.11
Closed 6×100 QCOM Feb11 $52.5/57.5 Call Spread
Looks like there are no more positive catalysts for QCOM after IPhone for Verizon was annouced.
Profit taking can be seen after the iphone annnoucement and we decided to close this position at a loss
Sold the Call Spread @ $1.29 .
Rolled QCOM FEB11 $50/55 Call Spread into $52.5/57.50 at credit of 90 cents
Qualcomm rallied and broke above $50 on the first trading day of the year.
With today's positive news on the purchase of a WIFI company Atheros (NASDAQ: ATHR, up 18% on the news), QCOM is now up 2% as well.
We decided to uproll our $50/55 Call Spread to $52.50/$57.50 call spread. We are maintaining the call spread strategy because we believe the 10 yr high $56.88 could act as a resistance.
Bought 6×100 QCOM Feb 11 $50 / $55 Call Spread at $1.49
We are betting on Qualcomm breaking out $50 and seeing the CES in Jan 2011 as a catalyst
we are financing the $50 call by selling a $55 call
Breakdown of the trade:
Bought 6×100 QCOM Feb 11 $50 Call @ $1.88
Sold 6×100 QCOM Feb 11 $55 Call @ 0.39
Total cost of trade : $894 + commission
Max Profit : $2106 – commission
Assignment of 2×100 MRVL Dec10 $19 put
option expired in the money. assigned to buy 200 shs of MRVL @ $19.in other words. covered 150 shs and bought 50 shs at $19
Sold 2×100 MRVL Dec10 $19 Put @ $0.35
Sold 10×100 Citigroup Nov10 $4 Call @ $0.27
P&L + 90
Covered 50 shs of MRVL at 19.49, sold 2 Nov10 $17 Put, sold 2 Nov10 $19 Put
Covered 50 shs of MRVL at 19.49, P&L – $139.50
remaining position, short 150 shs
Sold 2×100 Nov10 $17 Put @ 25 cents
Sold 2×100 Nov10 $19 Put @ 31 cents
