Saturday, October 13, 2007

20 -100 Portfolio Update

ACN Calendar Closed the Accenture Bull Calendar with a $400 profit. The maximum loss on the trade was $400 so the profit was 100%, which was also the exit target. Maximum profit was $700 if ACN closed at $40 on expiration. ACN has been lately moving upwards and closed above $42 on Friday.

IBM Double Calendar SpreadIV and Earning Both IBM and CAT Bull Calendars are suffering because implied volatility is increasing on the short calls due to earnings. Both trades are in the profit range but due to increased IV the calendars are acting weird. Lesson learned - avoid earnings season when placing calendars. See trader comments on this issue at Yahoo Finance Board.

November Trades Exploring options to place calendars on JNJ, ACN, PEP and MCD post the earnings announcements. October 31 is the Fed meeting and market could react significantly to the Fed comments. Will likely stick with more defensive plays like JNJ and PEP.

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