Tuesday Recalibration

It was a interesting day today DGIT started the day flying high on some great earnings and proceeded to tank from those early highs the rest of the day. Based on the early action I am looking to get back in long in the next day or two once it reaches a localized 'bottom' 32.5 is looking good right now. I'll look to go in for 4 Mar 30 at 3.5, and look to sell 4 Mar 35 at 1.2 (GTC) giving me a cost of ~1000 after trades. I feel this could be flipped quickly but I've tried to lower my risk by selling the 35 call. I think we have now tapped out on the 4k portfolio.... however.....

Going back over to our ANR trade we picked up last week. I sold the ANR FEB 52.5 for $4.1 and covered my FEB 55's for $2. Yes I do think the ANR will drop before the end of the week which would lower my cover costs- perhaps even eliminate them entirely, but the goal of this is try and profit quickly, and though we may not be maximizing we are trying to profit while lowering our exposure. Lets go to the math: Bought @ 522.24 sold @ 1217.73, Net Profit=695.49..... Now our short- remember this was to LOWER our actual cost if the stock went DOWN, but we like the stock so we would have bought it (or sold the option we were left with-at par value to the stock, and we assume our short expires worthless which, again, lowers our purchase price). In this case as the trade went UP, we lost on our short, but we were ok with this. OK sold our short for 158.75 now we had to buy it back to cover at 612.24 for a loss of 453.49. So our final profit is 242 on a cost basis of 363.49 for 67% profit. Whew... Now just a few more of those and we'll be back in the game.