The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Wednesday, September 20, 2006
Email – #188
Chaparral Update
As expected, last night Chaparral Steel Company (Nasdaq: CHAP) reported record earnings. Given record steel prices over the summer, this was anticipated. Now though, we are waiting for the conference call this morning at 11:00 AM, where more guidance to declining steel prices should surface.
With this in mind, we are keeping the stop firm at $39.50, unless something material surfaces in the conference call that affects the possibility of the stock falling. For now though, we will not close the stock unless it closes above $39.50.
Please be prepared for another alert this afternoon with more guidance on Chaparral Steel Company, and the FOMC announcement at 2:15 EST.
Exit is everything,
Mark Whistler
Current Portfolio
Stock or Option: Diamonds Oct 2006 $116 puts (DAW-VL)
Current Price: $1.50
Comments: Buy puts. Sell if Dow Jones closes above 11,700.
Stock or Option: Chaparral Steel (Nasdaq: CHAP)
Current Price: $37.77
Comments: Sell SHORT and place buy stop at $39.50
Stock or Option: Chaparral Oct 2006 $27.50 puts (ZHQ-VY)
Current Price: $0.10
Comments: Buy puts and use a 50% trailing stop.
Stock or Option: Chaparral Jan 2006 $27.50 puts (ZHQ-MY)
Current Price: $0.70
Comments: Buy puts and use a 35% trailing stop.
Stock or Option: TXU Corp (NYSE:TXU)
Current Price: $62.38
Comments: Sell SHORT. Buy stop is above $67.50
Stock or Option: TXU Corp Jan 2007 $55 puts (TXF-MK)
Current Price: $1.05
Comments: Buy puts. Sell puts if TXU closes above $67.50.
