The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Monday, May 15, 2006
Email – #118
Action To Take:
Buy the FuelCell Energy (Nasdaq: FCEL) June $12.50 call, FQG FS at $0.75 or better.
Buy the FuelCell Energy June $12.50 put, FQG RS at $1.10 or better.
Set your trailing stops at $0.40 for the call and $0.55 for the put.
READ BEFORE INVESTING – Reminders for Every Trade:
- Don’t cherry pick the list. Do each trade as listed.
- Do equal dollar amounts in each option.
- Follow the stop loss to the letter.
- Stay on top of the emails and follow the instructions to the letter.
- The prices for each option were checked with a broker before I sent them. Use limit orders for all of your buys. If you can’t get them at the recommended price, don’t buy them . I will adjust the buy price as necessary or cancel the recommendation.
- You will be notified by email when to sell.
FCEL has had a wild ride for the past three months, from $9.50 to $14 and back to $12.50. It’s a very volatile stock with lots of surprise potential. The put is very cheap in the money for $1.10.
Our Comverse Technology (Nasdaq: CMVT) put is still moving up. Let’s move our trailing stop to $1.10. NO HARD STOPS – Mental stops only! As long as the market is weak, and the bad news continues to roll out about the option pricing issue, we should be in good shape with this one.
Good investing.
Steve
Current Portfolio
Option: FuelCell Energy June $12.50 call
Price: $0.75
Comment: Buy at $0.75 or better.
Option: FuelCell Energy June $12.50 put
Price: $1.10
Comment: Buy at $1.10 or better.
Option: Comverse Technology June $22.50 put
Price: $1.60
Comment: Hold. Move sell stop to $1.10.
