The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Friday, April 20, 2007
Email – #263
Volatility Trader Alert
Dear Subscriber,
Today is expiration day for one of our positions, Tyson Foods (NYSE: TSN). And, unfortunately, it’s going to bite the dust. While the position didn’t work out as planned, I’m relieved to have the last of our defunct December positions cleared out from the portfolio.
On the bright side, though, we’re definitely on the right side of the market with out Plantronics (NYSE: PLT) and Scientific Games (Nasdaq: SGMS) calls…
As you will notice in the chart below, SMGS broke above descending resistance in today’s session, and should we see closes above the 50-DMA at $32.08, the stock will be on track for new highs very soon. I couldn’t be happier with the direction of this trade right now.
In addition, Intercontinental Exchange (NYSE: ICE) has begun moving up, which will bode very well for our call side of the straddle.
Even though the call side is beginning to move in our favor, I do not want to eliminate the put side just yet. Regardless, it’s important to note that the winning side of this trade should more-than-cover the losing side, and the return when we close the trade will be very great! Right now, all we’re waiting for is a break above support at $135, and this trade is off to the races.
I’ve highlighted the consolidation breakout that’s occurring in the chart below.
In the meantime, please have a wonderful weekend…
Exit is everything,
Mark Whistler
Current Portfoli
Plantronics Inc. (NYSE:PLT)
Nov 07 $22.50 calls PLT-KX
Purchased: 4/13/2007
Current Price: $3.50
Scientific Games (Nasdaq: SGMS)
Oct 07 $35 calls TUJ-JG
Purchased: 3/28/2007
Current Price: $1.90
InterContinental Exchange (NYSE: ICE)
Jun 07 $100 puts ICE-RT
Purchased: 3/21/2007
Current Price: $.30
June 07 $155 calls IHH-FK
Purchased: 3/21/2007
Current Price: $2.50
Digital Realty Trust (NYSE:DLR)
July 07 $40 puts DLR-SH
Purchased: 3/14/2007
Current Price: $1.75
Tyson Foods (NYSE:TSN )
Apr 07 $17.50 puts TSN-PW
Purchased: 12/18/2006
Current Price: $0.00
