Trade of the Day (SNE) 2.23.2012

Reason I like this Trade: There are unusual options activity orders, then there was an order in SNE that I needed to jump on.  Someone bought 2500 SNE July 23 Calls, they paid $.90 for it and I decided not to trade SNE just yet.  Then when someone else, or maybe the same person bought another 2500 of them for $.95, I decided I could not just sit back and watch, so I jumped on board.  Later today, I saw someone buy 3485 SNE July 22 Calls for $1.40 and someone else sell 5000 SNE July 16 Puts for $.35, making my belief that SNE will rally higher much stronger.  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 $24 very soon.  (See Disclaimer)  

UPDATE 2.24.2012 With SNE ripping higher by more than $.55 today, these Calls are really working out.  Yesterday I sold 10% of my position for $1.10 and today they are worth $1.20.  I am offering 25% of my position in these Calls at $1.30.  I still think SNE can trade $22.50, so I will leave the majority of my position on for more upside, but a nice winner so far.  

UPDATE 2.27.2012 I sold 10% of my position at $1.10, so I still have a 90% position on.  Even with the stock market selling off, I think SNE has more room to run to the $22.50 level.  These Calls are currently worth $1.15, good for over 20% gain.

UPDATE 2.28.2012 Sony traded up to $22.50 today and hit my target. I am still LONG a 75% position and it looks very strong, so I will try to piece out of Calls piece by piece.  My next offer on the Calls is $1.60

UPDATE 2.29.2012 Even with Sony getting slammed today by more than $.75 to $21.50, these Calls are worth more than I paid for them.  They are still worth $1.10 and I paid $.95 so it is still profitable  

UPDATE 3.1.2012 A little POP never killed anyone, I am leaving a 75% position on and I am LONG SNE.  These Calls are worth $1.15.

UPDATE 3.2.2012 With SNE selling off a bit, I have started to release that if I have a 30% gain in 3 days, I should take the position and move to the next trade.

UPDATE 3.5.2012 Proving once again that I need to take more quick profits, these SNE Calls are now only worth $.80, but I will not look to add to this position, I am glad that I took some partial profits.

UPDATE 3.9.2012 Sony has been all over the place and it sold off and now it is rally back.  I think the stock can trade back to $22.50, so I will leave this trade on for more upside.

UPDATE 3.22.2012 With Sony selling off again today, these Calls are now only worth $.60, indicating to me that I have to take profits quicker and faster.  Another lesson learned.

UPDATE 4.9.2012 With positive news from SNE today, this stock still can’t rally higher, but once again since the trade it on until July, I will leave it on, because anything can happen

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