OJ Portfolio Update

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MSFT Update

Our JUL 27.50 Calls that we bought for 1.96/contract closed today at 2.50 (+28%). We'll see if the tech rally continues with MSFT leading the way for the Nasdaq.

NYMEX HOLDINGS (NMX)

Since I'm still waiting for NYX to pullback a little bit more for a long call entry, I thought that I might add another exchange play.

That's right, the New York Mercantile Holdings, Inc. (NYSE: NMX). Why another exchange you say?

Just because I think it has been neglected and forgotten about by investors who have been involved in NYX, CME, ICE and BOT.

Just because the stock has been beaten down since it's IPO and just because analysts have downgraded I think its time to rise will be imminent.

So here's what I have done to show my bullish bias on NMX. I bought the JUN 07 120 Calls for $13.41/contract near the close yesterday.

There is no theoretical option pricing model on any of these options because they have no history due to recent availability of options on the IPO.

The JUN 120 Call IV level is around 30% which is 52 wk lows. The ATM option IV has recently started rising which can be good for the call options especially if the underlying continues to rise.

Having said that, I like the recent support at 115 and 118 and have seen a recent runup the last two trading days. The trick will be if it can break the 133 level.

The only fundamentals that have been at the forefront of this company's earning growth potential is that its trading volume of both futures and options contracts have recently hit records especially those contracts tied to oil and precious metals.

I intend on grabbing more contracts as it breaks out of recent highs or if it retreats back to support levels, nothing in between.

Grab a vine and tell me what you think about this NMX long term call play.

Stay Tuned For My Next Posts

Look for my latest trades concerning DELL, NMX, and CSCO. Can you say tech and finance heavy?

Stay tuned for more.

Yahoo for YHOO?

Do you for YHOO or do you YAWN?

What do you get when you start losing market share to GOOGLE? Could it be a beaten up internet giant that is undervalued or a beaten up internet giant that will remain beaten up?

According to my research, YHOO is fairly valued at around $34.00. It has found support recently at $25 and hit a 52 wk low at $23. I like this sleeping value play and here are the options that I like.

I legged into some JUL 07 27.50 Calls at 3.81/contract. Why? Because their theoretical value is at $4.20 with a .65 delta.

Those options are trading at a 33% IV level which is about the lower middle of the extremes of 25/50% levels. They look like they have been rising which coupled with a rising underlying is double whammy on the positive side.

Fundamentally, YHOO still has a large user base, still remains to be the most popular web destination on the web, still has a far-reaching global popularity, has plenty of cash for stock buybacks and potential headliner acquisitions, and with its reorganization plans unfolding there is a positive aroma in the air.

The downside is that YHOO's revenue primarily comes from search which has fallen behind Google and could see hard times in an economic recession. It has also executed poorly in launching its newest advertising platform and has lacked in acquisitions behind Google and NewsCorp's. The competition is stronger than ever from AOL, Google, Microsoft, and traditional media companies.

Having said all that, why Yahoo now? Mainly because I think that it has been awakened by the stiff competition and that it looks attractive at these prices given that it's in a bullish sector so far. Besides, I like Yahoo Finance.

Grab a vine and let me know if you are Yahooing for Yahoo or not.

MSFT Update

Alright fellow "junglers" (please help me on a name I can call all readers). I entered my first scaling in position in MSFT.

I bought the JUL 07 30 Calls at $1.96/contract. I'll continue to scale in more as we go here. I'd still prefer a pullback in the overall markets which have been resilient at key support levels.

I liked the little pullback in MSFT today as it trades sideways here at the $29.50 level.

I'll keep all posted. I intend on posting a portfolio link soon as more positions start coming in for all to view at your leisure.

Feel free to grab a vine.

APPL 90/85 PUT Credit Spread Update

The 90/85 put spread trade that I entered yesterday is now worth $0.50 putting our position up by $1.70/contract (+77%). Remember, that our net credit basis was $2.20/contract.

IV on those puts has not really moved that much. This has been more of an underlying move up that has sucked the life out the put premiums (remember, that's a good thing for a net credit play).

Well I exited the trade earlier today (too early I might add) for a net debit of $1.00. I just thought that with so much movement from yesterday and still a higher open today that it might make sense taking my profits now and if the stock loses momentum into earnings that there might be another entry point yet.

I'll keep all in the jungle posted.