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September 26, 2013

$GLD Weekly Trade Idea

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  • Strategy: Bull Put Spread
  • Underlying: GLD
  • Trade: SELL -1 VERTICAL GLD 100 (Weeklys) OCT1 13 124/121 PUT @.21 LMT
  • Trade Price: .20¢ credit per spread
  • Margin: $2.80 per spread
  • Return on Risk: 7.14%
  • DTE: 9
Risk Profile:

Trade:

Gold has been in a steady downtrend since peaking out back in Oct'12. Last week the Fed decided to kick the TAPPER down the road and gold caught a bid running from 125 to 132, it has faded since and last two days it seems like buyers are stepping up. GLD is back above it's 8 day MA and below 21 day MA. We're going to use that 125 area as our pivot for this trade. The risk here is that Gold futures trade almost 24 hours around the clock and any news out of China or Europe can drive price one way or the other which will cause GLD to gap from previous close. A trader may consider reducing size to avoid risk, but as long as GLD stays above 123.80 ( GLD is 4.11% from break even) this trade should yield 7.14% ROR.

September 23, 2013

$GMCR Weekly Trade

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  • Strategy: Bull Put Spread
  • Underlying: GMCR
  • Trade: SELL -1 VERTICAL GMCR 100 (Weeklys) OCT2 13 70/65 PUT @.35 LMT
  • Trade Price: .35¢ credit per spread
  • Margin: $4.65 per spread
  • Return on Risk: 7.52%
  • DTE: 18
GMCR is down over 6% today and is currently under 50 day moving average. It has traded several times under 50d SMA and was able to find buyers. We're thinking this down move might be stretched and we should see buyers step in. To limit our downside we're going to use 74 level as potential stop, so risking about $50 to make $35 per spread.

September 18, 2013

$LNKD Weekly Trade

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  • Strategy: Bear Call spread
  • Underlying: LNKD
  • Trade: SELL -1 VERTICAL LNKD 100 (Weeklys) SEP4 13 265/270 CALL @.40 LMT
  • Trade Price: .40¢ credit per spread
  • Margin: $4.60 per spread
  • Return on Risk: 8.69%
  • DTE: 11
LNKD has been one strong stock running from 160 to recent highs of 255. We're looking for a H&S pattern to play out on a 30 min chart and measured move would put this stock around 238. We'd consider closing out this trade on the break above recent high (257.50)

September 13, 2013

$AAPL Weekly Trade

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  • Strategy: Bull Put Spread
  • Underlying: AAPL
  • Trade: SELL -1 VERTICAL AAPL 100 (Weeklys) SEP4 13 440/435 PUT @.45 LMT
  • Trade Price: .45¢ credit per spread
  • Margin: $4.55 per spread
  • Return on Risk: 9.89%
  • DTE: 14
Risk Profile:
Screen Shot 2013-09-13 at 10.43.42 AM
Trade:
Screen Shot 2013-09-13 at 10.43.03 AM
After a disappointing product release earlier this week Apple is down to around 467. It is still above it's 50, 100 and 200 day moving averages. We think there will be some support around 450-460 level. We're selling put premium with 14 days until expiration. Any bounce in Apple will crush put premiums and that will help our trade to work a bit faster. Daily chart:
Screen Shot 2013-09-13 at 10.44.01 AM

September 12, 2013

$GOOG Weekly Trade

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  • Strategy: Bear Call spread
  • Underlying: GOOG
  • Trade: SELL -2 VERTICAL GOOG 100 (Weeklys) SEP4 13 935/940 CALL @.32 LMT
  • Trade Price: .30¢ credit per spread
  • Margin: $4.70 per spread
  • Return on Risk: 6.64%
  • Probability: 84.02%
Risk Profile:
Screen Shot 2013-09-12 at 10.43.25 AM
Trade:
Screen Shot 2013-09-12 at 10.43.09 AM