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Replies to #158 on Covered Calls
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lexi2004

05/07/08 4:41 PM

#161 RE: Joe Stocks #158

Posted this on another BB, if you or anyone else plays options; would really appreciate your thoughts regarding trading way out of the money options when it looks like a turn is coming. And yes, I am short AAPL, got in too early as I posted here, but added puts when it hit 185.:)

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Would like your comments on this, please. Don't know if it's your kind of thing, but perhaps you have some thoughts on this...
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AAPL has been like a rocket; however, when it retraces, it REALLY retraces. Anyway, the May S170 options are way out of the money and resulted in the price for these options today to drop to .43. Symbol is +APVQN. AAPL came off the high of day and started to retrace. Those out of the money options got as high as $1.25!! $180.54 was the LOD and far from S170; however, there was that big move on options. I'm going to be on the lookout for plays like this in the future for they can be very lucrative and even if it turned on you, @ .43 you could get 10 contracts for $430+commission. If you sold at HOD you would sell for $1,250 - commissions. Sounds pretty good to me. LOL I realize not everyone would get the LOD and sell at the HOD, just using that as examples.

BTW, I added to some June S80 puts I have on V @ 2.40; that;s +VRP. That was far from LOD, but it was when I thought V might be turning.

Lexi
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Joe Stocks

05/13/08 8:40 AM

#170 RE: Joe Stocks #158

Canadian Solar gains in pre-market after Q1 profit
(LDK down in pre-market. Own both. Covered calls on all. LDK fine because my May calls are at 35. CSIQ I will miss most the upside with June 30 calls.)

By Steve Gelsi
Last update: 8:26 a.m. EDT May 13, 2008

NEW YORK (MarketWatch) -- Canadian Solar Inc. (CSIQ) shares are up 17% to $40.01 in pre-market trades on Tuesday after the company said it swung to a first-quarter profit of $19 million, or 61 cents a share from a loss of $3.9 million, or 14 cents a share in the year-ago period. The Jiangsu, China-based solar panel manufacturer said revenue for the three months ended March 31 rose to $171 million from $17.5 million in the year-ago period. Analysts surveyed by FactSet forecast earnings of 32 cents a share and revenue of $151.2 million, on average. In the fourth quarter, Canadian Solar reported net income of $5.9 million on revenue of $127.5 million.