The LEAPS Option Trader
105 W. Monument Street
Baltimore, MD 21201
Monday, July 19, 2004
Email – #179
** Move Up Your Sell Stop
Our recent Nasdaq 100 Trust put (QQQ-XI) is up over 25% in just a week or so. Our cost was $1.75 and the current best bid is $2.20. Right now the market is going our way. However, since we only have six months on this option, any move against us could end up breaking our proverbial back with this position. So, please move up your MENTAL sell stop to $1.55. This means if the option (QQQ-XI) closes at or below $1.55 on the offer, you should sell the position.
Tomorrow may be a big day for us: Motorola reports earnings. I believe the numbers will be better than the Street expects. If that happens, we should see a nice pop in our options. If not, then we will be selling our position, barring any really good reason.
Regards,
Karim Rahemtulla
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Current Portfolio:
Company / Symbol: Nasdaq 100 Trust
Option / Symbol: Dec. 04 $35 put (QQQ-XI)
Date Purchased: 7/7/04
Current Price: $2.20
Comment: Hold. Move up your mental stop to $1.55.
Company / Symbol: Ciena (Nasdaq: CIEN)
Option / Symbol: Jan 07 $5 call (VCB-AA)
Date Purchased: 6/22/04
Current Price: $1.05
Comment: Hold.
Company / Symbol: Lucent (NYSE: LU)
Option / Symbol: Jan 06 $5 call (YXL-AA)
Date Purchased: 5/25/04
Current Price: $0.45
Comment: Buy at $0.55 or less. No TS.
Company / Symbol: Dynegy (NYSE: DYN)
Option / Symbol: Jan 06 $5 call (YNY-AA)
Date Purchased: 5/25/04
Current Price: $1.00
Comment: Hold.
Company / Symbol: Motorola (NYSE: MOT)
Option / Symbol: Jan 06 $20 call (WMA-AD)
Date Purchased: 5/5/04
Current Price: $1.55
Comment: Hold. No TS.
Company / Symbol: Placer Dome (NYSE: PDG)
Option / Symbol: Sell Jan 06 $25 call (YDI-AE)
Date Purchased: 4/1/04
Current Price: $1.35
Comment: Hold. Sold call against Jan 06 $20 position.
Company / Symbol: Placer Dome (NYSE: PDG)
Option / Symbol: Jan 06 $20 call (YDI-AD)
Date Purchased: 1/23/04
Current Price: $2.40
Comment: Hold. No TS.
Company / Symbol: Hewlett Packard (NYSE: HPQ)
Option / Symbol: Sell Jan. 06 $30 call (WPW-AF)
Date Purchased: 2/3/04
Current Price: $0.45
Comment: Hold. Sold call against Jan 06 $25 position.
Company / Symbol: Hewlett Packard (NYSE: HPQ)
Option / Symbol: Jan 06 $25 call (WPW-AE)
Date Purchased: 12/10/03
Current Price: $1.15
Comment: Hold. No TS.
Company / Symbol: Nokia (NYSE: NOK)
Option / Symbol: Sell Jan 06 $30 call (WIK-AF)
Date Purchased: 2/9/04
Current Price: $0.15
Comment: Hold. Sold call against Jan 06 $30 position.
Company / Symbol: Nokia (NYSE: NOK)
Option / Symbol: Jan. 06 $22.50 call (WIK-AX)
Date Purchased: 8/29/03
Current Price: $0.25
Comment: Hold. No TS.
Company / Symbol: Chesapeake Energy (NYSE: CHK)
Option / Symbol: Sold Jan 06 $15 call (WZY-AC)
Date Purchased: 11/6/03
Current Price: $3.60
Comment: Hold. Sold call against Jan 06 $12.50 position.
Company / Symbol: Chesapeake Energy (NYSE: CHK)
Option / Symbol: Jan 06 $12.50 call (WZY-AV)
Date Purchased: 7/28/03
Current Price: $4.80
Comment: Hold. No TS.
Company / Symbol: S&P 500 MITT (AMEX: MCP)
Date Purchased: 7/18/03
Current Price: $10.17
Comment: Buy under $10. No TS.
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Bio:
Karim Rahemtulla is the former Investment Director of The Oxford Club. The editor of The Smart Options E-Report, The Income Trader – A Covered Call Strategy and The LEAPS Option Trader, Karim is also a regular contributor to The Oxford Club Communiqué. His highly successful trading systems use covered calls and LEAPS to boost returns on blue chip stocks, and during the bear markets of 2000 and 2001, his picks outperformed the major market averages. Educated in England, Canada and the U.S. and fluent in several languages, Karim travels the world to find the best investment opportunities for our members.
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