Trade of the Week (FCEL) 2.23.2012
Reason I like this Trade: There are unusual options activity orders then there was this order in FCEL. Someone bought about 5,000 FCEL July 2 Calls for $.25. This stock has been raging higher and been trading higher on 10 of the last 11 days. FCEL just inked a deal with IPKT for stationary power plants in Germany, and it looks the alternative energy story has more room to run. With higher oil prices, Solar and alternative energy looks like a great way to play this space. Just like I have been trading the Solar stocks, I will be looking to take off partial profits in a run-up in stock, but I have almost 5 more months for this trade to pan out to a winner. With the price Please feel free to email me with any questions at [email protected]
UPDATE 2.24.2012 I like to put orders in the book, so if a trade trades I get on the “print.” Why would I not put an offer in or bid in just in case, it is FREE advertising. Today, I was offering, trying to sell, FCEL July 2 Calls for $.35 and I got filled on 20% on my position. I still have 80% left, but locking in 40% profit on 25% of my position. That is a “Trade of the Week.”
UPDATE 2.27.2012 I still have a 80% position on and these Calls are currently worth $.30, I took partial profits, but I still see more upside in the alternative energy space.
UPDATE 2.28.2012 Someone sold these Calls for $.20 yesterday, the exact number that was purchased for $.25. So, I will be looking to punt this trade on any upside POP.
UPDATE 2.29.2012 These Calls are worth $.25 and they are in my BACK pocket, for a great risk vs reward play.
UPDATE 3.1.2012 I still own these Calls and they are worth $.25.
UPDATE 3.5.2012 These Calls are still worth $.15, but if I get a POP in the stock, I will be looking to take them off and move to the next trade.
UPDATE 3.9.2012 These Calls are currently worth $.20 for a small loser, but these kind of stocks can POP at any time, so it another lottery ticket for the back-pocket.
UPDATE 4.9.2012 I am still LONG these Calls and I was offering them today at $.15. They are currently worth $.10, but my position is so small I am not too concerned.