Bought V May 85 Calls I-T-M. Thinking a soon sell-off…
I love Visa (V) and I bought 1 contract today at $4. This IPO has a higher PE + double the capitilization of Mastercard (MA) so it should surpass MA in price currently at $298! With Visa @ $86 seems very undervalued and at a bargain price now publicly offered in my opinion especially with a bigger better branded name on more credit cards.
I bought another SWN SEP 40 Call @ $6.10 (same price) so now I have two contracts with the price currently hovering around $7.50 a contract. My GTC is at $8.10 even though I want to raise it I’d rather put it in a faster moving stock like Visa.
I’ve got this subconcious feeling looking at some over inflated stock price charts that some big stocks are ready to sell-off by investors taking a breather and dealing with other factors such as their homes falling in price such as First Solar, Bidu, and Google. Yeah, I know major growth stocks with good stories, but my daily and weekly charts seem to indicate engulfing bearish candles and if within reason (week) or so they don’t move up much higher then they should follow the current down trend further down. I would short them, but I’ve been burned way too many times losing money. So until I see a big break in trend or big move I will not listen to my gutt and instead not trade the stocks at all to be safe then sorry.
I’m extremely confident that AAPL, SWN, and V will continue a strong uptrend with of course dips and pull backs in the markets, but will go UP without reason for big reasons that are making the stocks $$$.
My order on V MAY 85 Calls:
5/6/2008 10:45:47 AM (ET):
Description: V MAY 85 Call
Stock: V at 86.93
Action: Bought To Open
Quantity: 1 contract(s)
Reg Fees: $0.00
Net Amt: $414.95
GTC @ $8 +100% <— Goal time within 3-7 days
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This entry was posted on May 6, 2008 by Paul Awol. It was filed under trading stock options and was tagged with aapl, bidu, fslr, goog, gutt feeling, ma, market analysis, option trade, p/e, sell-off stock prediction, shorting stocks, swn, v, visa.