Just thought I'd drop in on this forum and see if anyone has comments on a nice trade I made this week.
Looking at Cymer Inc. CYMI, I decided it was at the bottom of a nice uptrend channel. On 3-4-99 CYMI was at 21. The Mar calls were 20 @ 2 1/4, 22.5 @ 1 1/8, 25 @ 11/16. I placed an order for 20 contracts of Mar 22 1/2 calls. It was filled the next day at 1 9/16. I didn't like the fill price, but it was better than not getting filled at all. Guess I should have used a limit order, though.
Moday I decided I liked the stock more than that, so I placed an order to buy at open 3-6-99, and picked up 1000 shares of CYMI at 22 3/8. Good thing I bought at open, 'cause it bounced big time Tuesday.
But then it sold off the next three days, until Morgan Stanley Dean Witter upgraded Cymer to a Strong Buy, and it gapped up this Tuesday.
Expiration is fast approaching. I had to decide when to sell the options, or whether to hold them to expiration. I decided I didn't want 3000 shares, so I split the difference. I sold 10 contracts today for 3 5/8 (with CYMI at about 26), and plan to let the other 10 expire, and buy those 1000 shares for 22 1/2.
So, what do you think? |
