“Profit taking equals profits for us”
Intraday Investments Trading Summary for Monday, July 16, 2001
Both the S&P and Nasdaq was hit with a solid round of profit taking today, after attempting to rally through resistance early in the morning session. Since we were aware of the overhead resistance at 1225 and 1230 on the S&P, we positioned ourselves on the short side early in the session and realized a rather profitable day.
Our most exciting trade today was covering the rest of the NVDA July 85 calls that we sold short on June 19. When we entered the trade, we collected a premium of $8.60 and covered the rest of the calls at 0.45 today, netting a tidy profit of 8.15 points (the first half of the position was covered last week for a profit of 6 points). In addition, we made the following intraday trades today: BRCD short + 1.50, JNPR short + 1.15, AXP short + 0.44, BAC short + 0.04, and PTEN long (0.40). We also made a profit of 1.46 points from our ERTS overnight short (only covered half the position and took the rest of it overnight short again). However, unfortunately, the Oil Service sector failed to follow-through with the potential upside reversal we saw on Friday. As such, we were stopped out of DO long (1.19) and SLB long (2.25) from Friday. We also were stopped out of the SCMR long swing trade (0.46) from July 12. Our total profit, including all the overnight and swing trades, was 8.44 points. For those that only traded our intraday trades, we netted 2.73 points.
We entered several new positions today as swing trades: short KKD from 36.46 (also mentioned shorting the August 35 calls as an alternative to shorting the equity), short BBY from 68.42, and short SONS from 22.95. We also took half of our short position in ERTS from Friday overnight again (with a nice profit buffer).
In summary, we had a solid start to the week. Trade well!
Deron, Steve, and Ed
General Partners
intradayinvestments.com
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