A Bunch of BS

Check the way Bear Sterns is trading today. I am an hour and a half away from watching my first spread of 2007 expire worthless, leaving me a $1.35 credit. I know what you all are thinking... "Wow. You must be proud."

As the VIX continues to form a higher base, I am likely to keep throwing these out there. It is a great hedge against loading the boat and going long with overpriced options. I know what you are thinking... No, I am not a sellout, I am a trader. Traders adapt to changes in their environment. No, I am not defensive... I just don't know how excited I am to trade spreads.

Speaking of BS, tonight is the night that the soon to be bestseller book, Harry Potter and the Deathly Hallows comes out. Instead of waiting in line to get it, I provided a link to Amazon to get a copy, if Harry Potter is "your thing." I have heard some chatter that people will actually be waiting in line at midnight tonight to get a copy. Have fun. I'll be sleeping.

Since this link and some book sales will generate a lot of nice traffic for Amazon, Why not take a position soon? Earnings are coming out next week, and if the market responds, taking this above $75 and negating the questionable top, I am going to go long. Here is the all-time chart on Amazon that illustrates a lot of upside the stock has yet to reach.

However the 1 year chart shows the stock is hesitating to make it beyond resistance. This is why I would wait for a breakout, or a higher low before taking any action.

Option premiums are getting expensive here along with the rest of the market. So when it comes down to choosing options, choose wisely.

However, if you share my point of view that this book release is a not anything you plan on dressing up for, you can short the rest of the book sellers... BKS, BAMM, and BGP. All of them are left in the dust behind Amazon. Hey, maybe we structure another pairs trade?

Recommendation: Thanks to those who participated in the conference call this morning.

Long: Amazon, assuming I get the signal I am waiting for.

Short: Harry Potter

What conference call? did I miss something? I know Ive been a bit distracted lately, but I hate the thought of missing a chance to chat w/ you.


I may be drawing the support line wrong .. but CME is not at support yet on my screen. It's right around 550 for me to look at a bounce. And I would wait for earnings before purchase for my rules ... I show earnings annc - 7/23 - Monday ...

Realize we all see it differently but thought I would throw my $.02 at ya!

Raimo - I'm here .. just getting ready for this last hour ... Wild day but 90% of mine are holding their own very well .... let's see what happens!

Thanks for the clean cups heads up!

I just closed my BSC trade for a nice profit. That was a struggle though!

My CLF short put will expire worthless leaving me with $3.70 for my 3 week effort. Not too shabby!

Trying to decide what to do about other August calls on MRVL, ESV and NTGR, all of which are going my way and I hate to close them. Should I roll them? Just get out and re-enter when I come back? What to do!

Since my July spread on BSC worked out well, I decided to do another one for August. Considering I practically wiped out my IRA account, that's about all I'm willing to do in that account at this point...

Raimo, everyone,

I'm still here...if not in spirit...

Still overwhelmed with outprocessing and completing all of the stuff to complete my military career, will be done working at end of July, fully out 1 Sept!

For me, AAPL, BSC and BNVI are hangin' tough! Looks like I'm going to have to head to the MTN though! I'll read and reply as I can...

By the way, I've ruled out some possible suspects as "The Phantom Poet", attempting to triangulate their identity, just need more clues...we'll get there...ah the drama, the hunt, the challenge...I Love the smell of napalm in the morning...oh wait, I'm almost out of the military! Later and keep up the good work all!!!


Jeff set up an interactive Web ex conference call on the IT site that we could dial in and converse. It was excellent. He mentioned he will try to do it weekly. He posted the link on the blog and I assume he will do a new link each time.

CBEY is going to blow up next week.

Got your email I emailed you back with my phone number but it bounced. Do you have another email address? Please send me your phone number and we can talk after the close.


We had a get together behind your back. Just kidding. It's time to revise your less active status on the blog.

I will do it again sometime next week for those who missed out.


Thanks. I guessed I missed that somehow....darn! Will definitely try to be at the next meeting.


I'm here lurking, just not posting as much. bogged down w/ the craziness of RW Sydney...which you can look for the premiere in august. Tell Amber there's some juicy stuff coming this season!


Sorry about the problem with my e-mail address. I did wonder why I hadn't heard from you- but I know that you are a busy person so I forgave you :)I have a tech person coming over any minute now to help me with this and other computer problems that I have been having. I am not very computer savvy. The address, judymacfarland@yahoo.com is now working. Thanks for all your help. The CC was great. I was late to it because I signed up on the wrong site the first time but I perserved. Have a blessed week-end.

AIV...descending triangle... Earnings coming up which could be the catalyst to move down.

Jon P.
OC, Oregon

Chip..good to hear from you buddy.

Sarah, yes, we missed you indeed..you must come out and play more!!

CME, I have support at $557..but not playing around its earnings

CBEY...Brett, launch this missile..

BSC, for me, mental. It must close below $135 for me to feel victorious. Then my Aug can keep running...

NUE..inverse H&S setting up...and good support at $60...toss it on the radar..

Okay, I've made a decision. NO MORE TRADING TODAY! I will still be able to close stuff out on Monday morning so I'll just let them sit til then.

Okay, I am in the dark here

Clean cups?? What are these clean cups that are spoken of?

RW Sydney?? I must be missing some posts here or something..??

No, I am not playing CME with earnings coming up. Just mentioned it to watch. You guys have a great weekend. I am off to visit my sister. Plus, I already bought on the fake-out it had a few days ago. So I am in and just watching it and waiting.



AMZN. I hope you are right, I've been long this since a break out on 5/21. Been very bored with it ever since, but has not given me reason to exit. What are people's thoughts on that, in a trade, not really going against you, but not killing it either. Seems like on these there are better trades out there I can use this capital for....

Make that VIA...descending triangle.

Jon P.
OC, Oregon


RW Sydney stands for " The Real World Sydney". a television show on MTV. I am an editor on the show.


Clean cups is this blog's metaphor for "Jeff has put up a new post, everyone move on over and post over there".

It comes from ALice in WOnderland's tea party where they all sat at one end of a very long table and every few minutes the Dormouse would shout CLean Cups! and they all slid over to a new place setting.

MSM is sitting right on horizontal and diagonal support, earnings for them is over, IV is low. If you want to buy an option these are cheap compared to everything else I've looked at.


I had to have the "clean cups" explained to me too..."

It's a reference to Alice in Wonderland's tea party... at the tea party they all moved down one seat to get "clean cups", so the blog (read: DG) is using it to move people to a new blog post...

basically, if you see clean cups, the comments have moved onto the next blog posting.

Update: goog shorts will expire worthless. SLB continues to rock... just entered another position, but in another account.

Hope that helps...

MSM - does indeed look good. I'd jump in right here and now but I just said I wouldn't trade any more today....so tempting....

Thanks!!! Now Iam back in the loop!!! LOL...

Monday the selling will continue...then the bulls will come back..

I really don't know what is going to be said over the weekend, but i see the S&P holding support from its breakout. I see the Russell holding trendline support, still in an ascending triangle. I see the Nasdaq holding short-term horizontal support. I see the Vix hitting 18.50 resistance and slamming back to the triangle wall i identified on the conference call.

The Dow is the only index that still has about 100 pts to fall before it touches support. I have to say all in all, a bullish case could be made for next week.

I'm off to Kansas City to play golf. Have a great weekend everyone. I'm glad this week is finally over. It was not a pretty one.

MTW....if not for earnings..

TSO sitting at spt. Trade could go either way. The last 6 or so moves have been around 10% each.

Thoughts anyone?


Why do the stocks fall quicker than they rise?? I quess it is easier to fall down a hill than to climb a mountain.


Sell stops is the simple answer. Once they start getting hit they often keep going. And besides, have you ever heard of panic buying?


Die you son of a gun you....

I sold my GSF July paper on the close Thursday instead of waiting till today - why? Because I'm an ass.

Just thought I would throw that out there.



You just made me laugh so hard you brought tears to my eyes.

you made me shoot Miller lite out of my nares..

You got it on BSC .... Raimo ... Celebrate .. $134.95 .... MAN .. you have control of this market!

Good patience on BSC for those who endured! Congrats!


My sides killing me..I just threw a rib..

Arty ... you're about as funny as our man Chris! GREAT comment ... Nothing like any of us doing self-reflection!

I'm laughing out loud!


Your not helping..out your nares..??

I just laughed so hard I sprayed some yuengling all over my dog, scared the piss out of him,, he just ran out of the room and pissed all over my damn carpet...jeeesh..

I think I'm more upset that I missed the conf call this morning than I am about all of my July positions expiring worthless today.

I'm sure you all make a killing today and I missed it!

Trades that didn't work (can't BE any more patient...): BNI (both ways), COG, COL, DNA, PAY, VCLK, MHIM, KOMG, RESP, SII, TM

Having said that, I did have many winners and it has been a very good month, thanks to Jeff, Brett, and others on this blog. THANK YOU.

Holding Aug positions in:

Also holding stock in BGH and it has done very well. I actually found this one on my own :-)

I'm on vacation next week so I will see you all when I return.


Not a great day for me but I am hopeful for Monday. Thanks to Jeff and everyone and have a great weekend. My girls are dragging me to see Hairspray now. If I golf, then I owe them a chick flick and it is payback time.

DG here is another question for you. Why when you hold over earnings, the stock drops like a rock and when you sell before earnings, the stock skyrockets?


Monday..sell off in the morning, then good time to get bullish..

Got to go find my dog now..

In one of my other live's I was a paramedic, and that is what we shoved a nasal cannula up, your nares. Anyway, I've loved the word ever since

Too damn funny, nares...

I was an EMT, many a year ago. back in Queens NY..

So the jagged 3 cent pill on the disastrous GOOG spread was a little easier to swallow than I thought. That's all I have to say about that. Strong recovery in DECK today. And how about flipping the script on MLM and shorting that sucka on the H&S break? Neckline @ $153, two right shoulders... hunchback style trading. Anybody with me?

Ryan in SF
aka: The "Forget Search Engines, Ever heard of a guy named Dewey?" Guy

Queens! I thought I detected a NY accent. I'm a Lawn Guyland girl myself though I was born in Meanhattan.

Because the market gods KNOW it is you behind those positions and they are always out to get you.

Have a great weekend all!
I have got my wife's class reunion to deal with (actually won't be bad, we went to same high school, she graduated a year ahead of me, so kind of like my class as well).

Here is an absolutely useless fact that I will bore you with quickly, she graduated in 1987 and had 87 in her graduating class. I graduated in 1988 and had 88 in my graduating class)

Crazy isn't it

I KNEW it!


Dont worry girl, My Tivo is set! I keep thinking to myself "I am way to old for this show," oh and Jeff reminds me of that weekly. :) But anyhow nice work on the show and Im tuning in!


That self degrading humor was awesome if I do say so my damn self.

I do have to say I am struggling a bit with the mechanics of execution of options. This is by virtue of the fact I have to sometimes do other things each day, like work. So I sometimes get a little trigger happy on the trade because I do not know if I will be in the right place during market hours, say on expiry Friday. Anyone else struggle with this issue.


I don't have any excuses, I just get trigger happy sometimes.

I think it's normal.


Whoever bought GSF last week, good for you. News of a buy-out. Up $5 in premarket. Good for you.
I am going to swing trade it today for some quick cash.


Post a Comment

About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
My profile

Prescriptions Here!

Other stuff

Blogarama - 
The Blog Directory
Directory of 
Finance/Business Blogs Finance 
blogs Top Blogs Finance Blogs - BlogCatalog Blog Directory