iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
21,396 Blog Posts

Can iBankCoin?

The “aftermath” of yesterdays bullshit rally has brought stock prices back to their senses. As you know, I am a degenerate option trader, and yesterday was a ball bashing event to those that chose to leverage their coin, and I was plenty leveraged. About an hour before the Fed, I was down nearly 8%, which is the largest one day drawdown I’ve had this year. Good news is that the drawdown has disappeared this morning. That’s what makes options fun. They give me a unique “high” that can’t be attained buying stock, hence my trading handle “Option Addict.” Speaking of getting high, here are a few “hits” I took this afternoon.

ADBE– My favorite tech short. I own half a portion of July 40’s with a target price of $36. The target was derived from the recent head & shoulders pattern that looks close to confirming. Once confirmed, I plan to add my other portion.

My next favorite short is ICE. Having recently ripped higher to it’s 20 day, it is finally detaching from the MA. My target price is the lows, and I own the July 120’s. This stock would also be a prime candidate for a call spread. Implied volatility is relatively high and weakening. Coupled with the passage of time, I would consider selling the 130/135 July call spread. As long as the stock trades below $130 at expiration, you’ll take down $150 (mid) per contract.

I also like puts on GOOG. Today’s price action is a significant break of support, and the next level I could see this stock trading to is $475-$500. I’m going to take down some Aug 500’s towards the close as long as the price remains below $535. My stop will be contingent on a rally to $545.

The recent rally in financials have generated excellent rips to sell. My favorite bank short today is STT. I am taking half my typical portion of puts here, and will add on a break below $65. July $60’s.

I am also adding a few long positions to my existing book. These are all energy names, obviously. I am going in heavy at these lows. Take a look at ATW.

ATW was one of the few highlights of my day yesterday. I own July $115’s, with a target price of $125.

I also like ANR. It does nothing but trend higher. The bounce off the 20 day provides an easy way to manage a trade here, plus I think the next time it cracks the century mark, it will stick.

Last is UPL. I like the rally off the 20 day, and the short term continuation pattern. I bought July 100’s this morning, will add to the position on a break of the Benjamin mark.

I am sure you have all been entertained with the onslaught of charts. Look at it this way, it’s better than watching CNBC.

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19 comments

  1. Option Addict

    Yes, I agree it was lame to start the day off with a gay video. It is important to note that I started that fucker off at 6 a.m. with much bigger and better plans to follow. However “Fly” forgot to leave me the crank to the server.

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  2. Handles

    can you comment on FTK since its such a bum fucked stock….

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  3. Cajun

    much better than CNBC!

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  4. alphadawgg

    Jeff,
    HRB? Are you still sentencing it to 40 lashes with a spiked whip?

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  5. buylo

    when Fly comes back, make sure you give him the assistant hat! and send him out for some Dunkin Donuts coffee.

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  6. Big Mike

    Wow…you are much better than the Fly; as in no metaphors as to why we are worthless relative to him (kicking man when he is down).

    I noticed you had a good sized call position on AKS, it like looks we are breaking down. What are your status on that? I have a long position I’ve had for a while, I am thinking about getting some puts, but its soo damn expensive.

    Top Pick: Short Trannies and Russell 2000 (no near term recovery and oil is breaking all time high); long natural gas, gold.

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  7. Option Addict

    Alpha,

    I took half off last Friday. But I nearly added yesterday near $22. A clockwork retest of the prior lows.

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  8. Option Addict

    Handles,

    I like FTK. I bought my first lot at $20, but added more in the high $17’s. I plan to sit on this one for a few months (IRA) with a stop at $16.

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  9. Option Addict

    Big Mike,

    I broke down and sold it. I weep.

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  10. BroDawg

    The Ugly Furry shoe is about to drop.

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  11. Zenprofit

    Mr. O. A.:

    How do you determine a “portion” size?

    BTW: Trish Regan is hotter than The Fly.

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  12. Handles

    Option Add….I have 140 Jul 22.5 calls…..so kinda watching this one closely…..hopefully I can get out with some juice…..

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  13. Option Addict

    Zenprofit,

    Right now my position sizes are 2% of my bottom line. A “portion” is a purchase equal to 1% of my account. WHen I am right, I raise the stakes to 2%.

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  14. Zenprofit

    O.A.

    Got it.

    Thx

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  15. BOOMER

    long 5k BOOM, missed the Sidoti upgrade by minutes

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  16. Danny

    Welcome Jeff!

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  17. Option Addict

    Thanks Danny.

    Hopefully I have successfully driven all the Fly’s traffic to your tab.

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  18. Danny

    I hope so, because I really don’t get enough credit for the iBC machine from that sick asshole.

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  19. calvino

    Calvino buy acpw, twenty shares, at days low.

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