Trade of the Day (IRM) 2.24.2012


Unprofitable:
 This trade is unprofitable if IRM Closes under $34.05 by July 20, 2012.  The most I can lose on this trade is the amount I paid for these Calls, $1.55.

Reason I like this Trade: There are unusual options activity orders, then I saw someone bought 1000 IRM July 32.5 Calls, they paid $1.55.  This was not a HUGE order, but it 30 times usual volume and the stock just had earnings, so volatility is very low.  The open interest on this strike was 1107 so it was an opening trade that is important as well.   I will be looking to piece of it it, just like I took profits in SEE, SYY, and SVU.  The chart looks strong and could test $32 very soon.  (See Disclaimer)

UPDATE 2.27.2012 With the stock looking strong on Friday, I sold 20% of my position for $1.75 and I still have an 80% position on thinking there is plenty of more room to the upside. 

UPDATE 2.28.2012 These Calls are currently worth $1.65, but I will leave this trade on for more upside.

UPDATE 2.29.2012 I am glad I sold 20% of my position, because IRM is looking a little bit weaker than expected.  I might look to Punt this trade on an upward move higher.

UPDATE 3.1.2012 I will be looking to take this trade off with a POP higher in stock.  These Calls are currently worth $1.45.

UPDATE 3.2.2012 This Calls are worth $1.35, but since I have 5 more months for this trade, I will leave it on for more upside, but glad I took partial profits.

UPDATE 3.5.2012 IRM is selling off again today, showing me that I have to take profits quicker than I have in the past.  Trading is trial and error, I think I need to make more quick profits and move on.

UPDATE 3.6.2012 I talked about the fact that I need to move a little faster on my trades, so I should have exited this one a little faster.  At least, I have until July until this trade can be profitable.

UPDATE 3.9.2012 This is interesting, because the other day Paper bought another 7,000 of these Calls for $1.00.  I sold a partial part of my position for $1.15 and I am comfortable taking this trade off for a scratch or small loser.

UPDATE 3.15.2012 These Calls are currently worth $1, but since they are 5 months away, I will leave them on

UPDATE 3.22.2012 These Calls are worth $.75 and I am happy that this trade is woring against me, I am just thankful that I took some profits while I could.

UPDATE 4.9.2012 These Calls are still worth $.75 and I will leave this trade on as anything can happen between now and July.