The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Wednesday, July 12, 2006
Email – #151
It would appear our plays on PAAS, COGT and COH are finally behaving the way POPS plays should. The market’s crazy swings of 100 and 200 points for the past few months have resulted in some very manic trading in the options market, but right now we are on the right side of all three of our plays. COGT is in the money, COH is within $0.55 of being in the money, and PAAS is moving in the right direction. Unless the “bipolar market” kicks in again, we should be in for some nice gains.
Several key market issues seem to have settled down, contributing to this momentary normalcy (knock on wood). Most analysts believe oil will have a pull back from its present levels, and the inflation scare of a few weeks ago has dropped from the headlines. This one won’t show up again until the next Fed announcement. If North Korea can stop short of starting a war in the Pacific, and the Middle East situation doesn’t explode onto our doorstep, I just might be able to leave my computer terminals for a few minutes.
Remember, no hard stops! This week, we had another case of one of our POPS members setting a hard stop on COGT and losing his options. The market makers can see your hard stops and they will trade down to them and take your money. If you are unclear on this very important point, call trading services at 888 570 9830. One of the Trading Specialists will review it with you.
Good Trading,
Steve
