8/7/2007 - Are you sea sick yet?

I'm walking to the rail. There are lots of people throwing up over the side of the boat. It is an enjoyable market for me to trade right now. I feel very fortunate to be growing the portfolio in this environment. Patience is very important, and staying within risk parameters is critical.

Trades -
CREE - I have finally exited my Dec/Jan 30c Calendar for .35. I purchased these @ .01 about 2 months ago. At my high mark, I owned 190 spreads of 3 different strikes. This was an excellent trade.

ONXX - I exited 1 unit of the 35c Dec/Jan for .30. I bought these for .05 on friday. VERY NICE. I still own 3 units of 25p Dec/Jan for an average credit of .01. This trade is now fully in profit. These are just lottery tickets for the Earnings report!

MATK - directional. Dec 20/30c for 5.25. I bought this theta positive and Vega negative @ 25.45. I like this trade with regards to it's trend break, bullish engulfment, retracement, Oscilator pullback and 50MA support. I will put another unit on at 50 day MA Support. I have chosen a slightly neg Vega and pos Theta strategy to work with the slightly high Volatility environment. My stop is below 24.33 low. Projected loss @ stop level is $127 per spread, projected gain @ profit stop is $433 per spread. I chose this over the 25c-30 spread, mainly due to the intrinsic value held within the 20-30c spread. The Risk/Rewards are the same in both spreads, as I do not intend on holding both spreads to expiration, or hold them to zero. The Breakevens are higher for the 25-30, and Theta and Vega are slightly against the trader.

JBLU - is down .08 from my purchase, but still above the 9.93 triple bottom support. Here is an interesting article on the price of oil and Airline stocks. I believe this is a worthwhile trade.

Cramer saying it like he sees it