Posted by: ctraderd | January 13, 2013

Watchlist- Week of 1/14/13 $CAT $DXJ $BAC $GS

Last week, the Dow Jones Industrial Average gained +104.14 for a total of +.78%, the S&P 500 gained +12.87 for a total of +.88%, and QQQ shares closed Friday at $67.24, gaining +.94 for a total of +1.42%. I made only one trade this week and that was when I closed my position in MELA for a total profit of $27.01 after commission.  I closed this trade at exactly the right time, because right after I closed my position, the stock tanked. I did not open any trades this week as well. You can see the trade on my page. Before making any decisions based on this article, read my disclaimer and do your own research!!

1.) Caterpillar Inc (CAT)

CAT gained +.60 for a total of +.63%. I am down on both of my Jan13 options, which expire this week. Unless something extraordinary happens, I will likely lose around $1,300 upon expiration. I made a big mistake on this straddle, when I sold my Jan13 90 Calls, and didn’t sell the puts. I must learn how to do a straddle much more effectively than this if I want to be profitable.

2.) Wisdom Tree Japan Hedged Equity Fund (DXJ)

DXJ ran last week for a total of +1.22 for +3.27%. I am now up +$220 on my long 100 share position from $36.33 average. I currently have a 25% trailing stop set with a current trigger of $28.93. So far this trade is going exactly as planned. I am looking to hold it until I am up 100% or more. Until it hits my price target, or my trailing stop is triggered, I will not sell. Remember, this trade is #1 Pick for 2013.

3.) The Goldman Sachs Group Inc (GS)

GS gained +3.45 last week for a total of +2.58%. This baby is on my watchlist this week because they are reporting earnings on Wednesday, January 16 at 7:30 AM EST. GS has an estimated EPS of $3.66 per share.  I might looking to open up a position to play these earnings with a Jan13 135 straddle. If I do play this one, I will buy 3 of each option on Tuesday at the open and close the losing position at the open on Wednesday. I might also close the winning position, depending on the profit range. This will be my third ever earnings play, if I do decide to go through with this trade. The two earnings plays I have done before have been GRPN, in which I came out with around a $30 profit, and GMCR, in which I came out with around a $120 loss, but I messed up the order on this one. Both of these plays were back in August.

4.) Bank of America Corporation (BAC)

BAC lost –.48 last week for a total of –4%. This one is also on my watchlist because they are reporting earnings this week, as well. BAC’s earnings are on Thursday, January 17 at 7:00 AM EST. BAC has an estimated EPS of $.02 per share. If I don’t play GS earnings, then I will play this one, but if I play GS then I will not play BAC. If I do end up playing BAC’s earnings, then I will open a Jan13 12 Straddle and buy 4 of each option on Wednesday morning. I will use the same strategy I would have used on GS for exiting the options on Thursday at the open.


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