MSFT has filled more than half of its big gap. It should test the support at 26 soon.
MSFT
Tag Archives: Msft
MSFT
MSFT has filled more than half of its big gap. It should test the support at 26 soon.
MSFT
MSFT went up to above 27 AH. Buying May 27.5 puts is one way to play with the pop.
It’s good opportunity to buy some SIRI. It’s still in the long-term uptrend.
Option Pinning …
Option strike price sometimes has interesting effect on the market during option expiration week. Looking at MSFT chart, we can see it slides towards 25. Based on the option trading volume data at Yahoo, there were 10,791 contracts (Apr04 25 Call) changing hands with 79,265 still outstanding, the heavest traded strike today. For premium sellers, it’s to their advantages to let the contract expire worthless, which means in this case that MSFT has to go below or at 25 to let Apr04 25 call contracts expire worthless. I have a small long position where I had sold some at 0.95-1.05 earlier and hold some until today I sold them at 0.7.
Reversals
Triggered by OPEC’s cut in oil production, all indexes dropped a lot. Although they were above or at support levels, the increased volume was troublesome.
EBAY hit the target @56 though the intraday high was 57.2. Left a lot of money on the table due to lack of time on watching the market closely.
Long: QQQ Oct 32 Puts, SNP (target 28 and trail 2), SUNW (trail 0.3) and MSFT SSF (target 31.5 and stop 28).