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Sunday, February 19, 2006

OATS entered. Plus, Challenge upate

Last week I entered OATS and exited SNE and VRSN. Here is my summary

http://www.pathometrix.com/Movies/OATS.mov

By the way, if you have iTunes installed in your computer, you could download any or each of these files and play them in your computer or even your iPod (if it is video compatible). I hope this is something you can use:

http://www.pathometrix.com/Movies/

6 comments:

Anonymous said...

Juan,

SBUX on the PCRC front, is edging forward with the bid price over $7.40 at times for the combination you suggested prviously.

In your opinion what is it realistic potential value likely to be at this stage? I am just in the game of guess work on this one.

Anonymous said...

The other post was so grammatically bad and incorrect, I have incurred my own wrath and re-worded it. **Smiles**

Juan,

Looking at SBUX on the PCCRC investment challenge. The value of it is edging forward with the bid price now over $7.40 at times, for the combination you suggested previously.

What in your opinion, is it's realistic potential value likely to be, before March 06 rollover?

I am just into the game of guessing on this one, at the moment?

Juan Sarmiento said...

I hope you have Optionetics platinum, to follow this trade. If you don't then it is very difficult to follow the progress of your trade. Keeping track of the value of your whole trade is a good alternative.

If you make 30% on the trade, you should be happy. The sooner, the better. How you make it depends on the combined effect of Vega, Delta and Theta. Currently, Delta is doing its job. Vega is still very low, so I would expect an increase at some point soon, which will be good for the trade. Theta is always working, though very slowly, in our favor.

I hope that is clear. Since SBUX is gone up about $1 today, our long calls have appreciated (Delta effect).
I entered my trade on the 8th so the short puts have lost 65% of their value while the short calls have worked against us a bit.

Don't be too concern with the details, or the day to day. Just think that the position is working for your, as time passes, or there is a spike in stock price or volatility. A simultaneous decline in volatility and price is the risk.

Juan Sarmiento said...

The rollover would be a good decision point. If the trade is working for you then, you could decide to stay in it or exit.

I will keep you updated of any changes in my thinking in both the SBUX and the LRCX trades.

Anonymous said...

Juan,

Good so far on both LRCX and SBUX.

I briefly have reviewed the AAPL and BRCM videos on the PCCRCs and watched your thinking as those trades have progressed.

The PCCRC - A much calmer way of trading...

Perhaps a good one liner for a an advert? **Smiles**

Anonymous said...

Juan,

SBUX is showing a rise of $0.48 on IB this morning, before market opening. This trade is looking alright.

EWI