ENER once again. Sell to open ENER Feb 14 calls in my taxable account. This will bring my cost basis down to $10.60. I closed the Feb 12 covered calls in my IRA a few days ago – just to clarify things. This trade is for a different account where my cost basis is much better.
I added a 1 year chart with daily bars to put this recent run-up into perspective. There is a lot of supply in that 13.50 area so I think there may be some consolidation. I am getting more bullish on ENER though. A pullback to that 50 or 100 day SMA and I will write some more puts.
ENER Daily 1 Year
I closed the Feb 12 strike covered calls on my ENER position I wrote back on December 23rd in my IRA. I decided to take the loss for now and not roll these calls up or forward. I will wait to see if ENER can keep the momentum going on this recent rally. I’m short the ENER Jan 11 puts in my taxable account.
It appears that ENER is in the process of making a bottom at or near the $10.50 area. It even looks like a mini reverse H&S pattern on the hourly chart. ENER closed near the highs and made a little flag at the end of the day unlike the previous rallies of the last few months where it sold off right away. However, ENER needs to get above 12 and make a new high on the daily chart before I get too bullish. A falling 50 and 100 day SMA makes this one guilty until proven innocent.
Many of the solar stocks are improving of late. I follow JASO and SOLR and they are on my “B” list right now.
ENER Hourly
Sell to open SLW February 15 puts. My limit order filled late morning. This is a new trade and another one from my watch list of last week. Many of the silver miners had good set ups and I wanted some exposure to precious metals. SLW has support at the $14.60 area.
SLW Daily
Sell to open HEAT February 12.50 puts.
SmartHeat, Inc. engages in the manufacture and sale of plate heat exchangers (PHEs) and packages, thermometer testing devices, and heat usage calculators in the People’s Republic of China.
I mentioned the other day that HEAT was on my watch-list. I was planning on more of a pullback before making this trade but this morning’s action made me enter the trade.
HEAT pulled back to the 38.2% retracement level on an hourly chart and has a rising 50 and 100 day SMA. I decided to go with the $12.50 strike which is also pretty solid support on the daily chart.
HEAT Daily
Earlier this morning I closed out the DRYS January 6 puts I wrote back on December 2nd. I also sold covered calls as part of that trade. I’m keeping the calls open and closing the put side of that strangle.
I was able to close these puts out at break-even so I decided against rolling them to February. DRYS is back below the 50 and 100 day SMA. If I want any more exposure to shippers I will probably look to sell DSX puts instead.
DRYS Daily
Sell to open IPI February 27 puts. I wanted to make this trade last week but I missed it. I decided to give it another try today after it found support at ~28.80 which is also a rising 50 day SMA. $27 coincides with a rising 100 day SMA as well. MOS and POT have similar charts.
IPI Daily
IPI Weekly
I’m having a bit of a tough time finding anything suitable to fill my February inventory. The silver miners are looking pretty good – notably PAAS, SLW, SSRI, SVM, MVG, HL. The silver miners would have been timed better if the puts were written last week, but it was a busy week for me and I missed it. I still think the trade could be done on a few of these. I like PAAS and I’ve done well with that one in the past.
I’m also watching apparel stores like ANF and CHS. I sold some puts on AEO about a week ago and that trade has been working out. Some other miscellaneous stocks include CIG and HEAT. The chart for CIG is almost perfect but the 17.50 strike is too close to the money. HEAT might be a good trade later this week or next week.
No trades today. I’m feeling rushed today and I feel like I need to write some puts – not the right mindset to be in when I’m logged into my brokerage account.
Categories: Watchlist Tags: AEO, ANF, CHS, CIG, HEAT, HL, MVG, PAAS, SLW, SSRI, SVN
Sell to open Energy Conversion Devices, Inc. (ENER) February 12 calls. The December calls I wrote expired OTM and I decided to turn around and sell February calls right away. I’ve been successful selling calls on ENER in Sep, Oct, and Nov and managed to get my cost basis down to $11.74. I’m short the Jan 11 puts as well.
ENER is stuck in an ugly wedge and I normally wouldn’t be wasting my time with this stock – as a new trade that is. However, I got myself into it months ago and I’ve been able to repair it quite well. No reason to be long a stock with a declining 50 and 100 day MA.
ENER Hourly
Sell to open China Green Agriculture, Inc. (CGA) February 12.50 Puts. CGA pulled back to support at about $14.70, which was also support at a rising 50 day SMA. I tried the 15 strike but my order didn’t fill. I’m much more comfortable with the 12.50 strike.
CGA Daily
I had the following options expire in December.
Century Aluminum Co. (CENX). The December 7.5 puts I wrote back on November 12th expired OTM for a 5 week return of 2.67%. * I’m also short the Jan 7.50 puts. CENX exploded back on December 10th and I’m glad I could participate in part of that move. If we get some consolidation or a pullback in the next couple weeks I may look to sell the Feb 12.50 or 10 puts.
CENX Hourly
Diana Shipping Inc. (DSX) – I had both the December 12.50 puts and December 17.50 calls expiring OTM. I wrote the puts back on October 29th for a 7 week return of 4.74%. * I wrote the calls on November 19th for a 4 week return of 3.10%. * This knocks my cost-basis down to $11.09. I’m currently short the January 15 puts.
DSX Hourly
Energy Conversion Devices, Inc. (ENER) – I wrote December 14 calls back on November 6th. This is a 6 week return of 2.45%. * ENER is showing some signs of improvement. I’m short the January 11 puts.
ENER Hourly
Ultra Financials ProShares (UYG) - The December 6 calls I wrote back on November 13th expired OTM for a 6 week return of 3.49%. *
UYG Hourly
* The return is calculated using the premium I received from the sale of the options (less commissions) and the capital required to pay for their possible assignment.
