Intraday Investments Trading Summary for Monday, June 4, 2001
Although the Dow staged a late-day rally, the major markets were relatively quiet today. The S&P futures stayed in a pretty tight trading range for a majority of the day, and volume was also light across the board. These two factors made trading challenging on both the long and short side of the markets. However, we still ended the day net positive due to the fact that we took profits quickly and kept losses tight. We also intentionally did not enter many trades because of the lack of follow-through witnessed in today's trading.
Our most exciting trade today was the KKD short calls that we covered today. Last week, we sold the June 70 calls for KKD and collected a premium of $7. Once KKD started to run out of upside momentum, combined with the decay in time value, the premium quickly eroded. In fact, we covered HALF of our KKD calls today at a price of $2.10, which netted us nearly a 5 point profit on that trade. We are still short the other half of the position and have lowered our stop to breakeven ($7) on the remainder of the position.
We also closed our PWER long position (from overnight) with an average profit of 60 cents, shorted INTC and went long CHV for a total profit of about 75 cents. We also took a total combined loss of about 1 point on JNPR and WMS shorts.
The following positions were taken overnight, with each of these stocks being either close to breakeven or slightly in the money: WMS short (re-entry after being stopped out), NVDA short, AMAT short, JNPR short (re-entry after being stopped out), TARO June 70 puts long, RMBS long, ATVI short, BKX June 920 calls short, and KKD June 70 calls short.
Although the market conditions were less than ideal for intraday trading today, we kept ourselves and our clients out of trouble and closed the day net positive. We are also well positioned with some overnight trade setups we took positions in. We are keeping a conservative stance to trading right now until we see a more clearly defined trend in the markets.
Trade Well,
Deron, Steve, and Ed
General Partners
intradayinvestments.com |
