The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Monday, May 22, 2006
Email – #121
Action To Take:
Buy the Lennar Corp. (NYSE: LEN), June $55 call, LEN FK, at $0.20 or less. Set your trailing stop at $0.10.
Buy the Lennar Corp. June $45 put LEN RI at $0.55 or less. Set your trailing stop at $0.25.
MENTAL TRAILING STOPS ONLY
UPDATE
Both Comverse Technologies (Nasdaq: CMVT) and FuelCell Energy, Inc. (Nasdaq: FCEL) are weak again this morning, after a small run-up on Friday.
FCEL has broken through all its support and I am looking for around $10.50, if we can get some help from the inflation numbers and the Fed.
CMVT is still up in the air over the postdating, option compensation issues with the SEC. My gut says they are going to around $20 to $20.50. It currently has more sellers than buyers, which is a turnaround from last Friday.
This week’s pick, LEN, is a stock that could go either way, depending on what the Fed does. Stay on top of it – I think when it goes, it will be a big one.
Good investing,
Steve
Current Portfolio
Option: Lennar Corp. June $55 call
Price: $0.20
Comment: Buy at $0.20 or less.
Option: Lennar Corp. June $45 put
Price: $0.55
Comment: Buy at $0.55 or less.
Option: FuelCell Energy June $12.50 put
Price: $1.60
Comment: Hold
Option: Comverse Technology June $22.50 put
Price: $1.45
Comment: Hold. Sell stop is $1.10.
