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
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
Sold 1×100 MRVL Dec10 $18 Put @0.66
Bought 10×100 Citigroup Nov 2010 $4 Call
C was down 5%. seeing good opportunity to buy a $4 November call for 18 cents for earning plays. C's earning on oct 18
Sold 150 shs of Marvell Technology (MRVL), covered 2×100 Jan 2011 MRVL $20 Call , shorted 200 shs of Marvell Technolgy (MRVL)
we were long 150 shs of MRVL while shorting a Jan 2011 $14 and $15 Put and a $20 Call.
today, it was reported that MRVL's chip being used in Research In Motion's PlayBook is buggy and its rumored that RIMM is replacing it with TXN's chip for the 2nd gernation playbook.
MRVL has reached double top at $18 and we believe it could turn back downwards.
We closed out long stock position and the short call.
Sold MRVL @ $16.71 : P&L +$300
Covered MRVL Jan 2011 $20 Call @ $0.35 : P&L + $73
on top of that, we have just shorted 200 shs at $16.70
Sold Mylan (NYSE: MYL) Oct10 $18 Straddle @ $1.10
P&L : $100
