Category Archives: Options

SOHU

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SOHU closed above the 20SMA in average volume. It looks good to break the resistence at 30.

I will watch it closely this week and plan to close half of the position if it crosses 30 intraday to book some profits in case it pulls back below 30.

The current open interest in Mar 30C is 7,839, which is not very big. I’m not sure how market markers will play near expiration days (roughly two weeks away). For premium sellers, they would love to let Mar 30C expire worthless and they can sell Apr 30 C and 35 C again.

SOHU

Posted on by

SOHU closed above the 20SMA in average volume. It looks good to break the resistence at 30.

I will watch it closely this week and plan to close half of the position if it crosses 30 intraday to book some profits in case it pulls back below 30.

The current open interest in Mar 30C is 7,839, which is not very big. I’m not sure how market markers will play near expiration days (roughly two weeks away). For premium sellers, they would love to let Mar 30C expire worthless and they can sell Apr 30 C and 35 C again.

SOHU

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Long SOHU Mar 30 C @2.30. This is a play at major support level. If the support around 28 holds up, SOHU will move back into lower 30s.

Tomorrow is the first day BOX opens for trading. I hope the stupid cancellation fees charged by all current option exchanges will be forced to be removed due to increasing competition. There’s another stupid rule in option trading, that is, you can not have 100% electronic transaction. Up to now, all exchanges require at least somewhere during the order entry process, a human involvement must be present.

Waiting to see job reports tomorrow.

China Stocks

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The internet stocks SINA, SOHU and NTES are all at or near the major support level. The possible play may be buying slight ITM Jan calls, but they are all richly priced due to their high volatility. Holding SOHU Jan 30 Call. Closed NTES 40 Jan Calls.

Other stocks such as ACH, PTR, SNP and CHA are making big moves at new highs.