The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Tuesday, May 30, 2006
Email – #127
Action To Take:
We hit our trailing stop of $0.10 on the Lennar Corp. June $55 call option (LEN FK).
Lennar Corp. (NYSE: LEN) continues to jump all over the board. The trader didn’t do us any favors on this one. The stock was up Friday, all day, above the level where our option was priced at $0.30 to $0.40 on Monday and Tuesday. Unfortunately, the price of our option has traded down to $0.10. I think the trader is trying to shake out the 10,000 LEN calls that were purchased Tuesday. Close out your position if you have not done so already.
Good Trading!
Steve McDonald
Bio:
Before joining Mt. Vernon Research, Steve was honing the skills that make him an invaluable resource for our members. For 10 years, Steve was a professional broker with a prestigious Baltimore based full-service brokerage where he specialized in helping retired and semi-retired investors create and preserve wealth. His firm recognized his work with the elderly when he was selected as a representative to the Clinton Administration’s Council on Aging. Steve is a regular contributor to the Smart Options E-Report and Accelerated Profits Report.
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