Thursday, July 14, 2005

Market/Trading Update

Wow, Apple (AAPL) surged huge on their strong earnings report, which really helped give the markets a push higher today. Sucks to have gotten stopped out, but that's the way the game is played. So, instead of a $3 gain, I took a 30 cent loss. Win some and lose some. Next trade.

Since my re-entry into EBAY in the 35.30s, I have traded in and out of part of the position and shaved the cost basis into the low 35.20s. Then, being a bit skittish, I sold calls covering the entire position expiring tomorrow (July 35s) for 40 cents. At the time of sale, this represented almost 0.6% premium over the intrinsic value. And, for a just over one trading day left, I figured it was worth trying pick up that small boost.

RFMD continues to charge ahead. It is now trading at 6.25 as I write, a 60% gain from entry. A single home run will more than offset many smaller losses.

CPI data was also quite encouraging today.

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