Posted by: ctraderd | May 19, 2013

Watchlist- Week of 5/20/13 $CPSS $SCTY

Last week, the Dow Jones Industrial Average was on fire, gaining +235.91 for +1.56%. Also, the S&P 500 gained +36.44 for +2.23%, and QQQ shares closed Friday’s trading session at $74.30, gaining +1.28 for +1.74% on the week. I made three trades last week. In the first trade I bought and sold 2 ESI Jun13 25 Calls for a measly +$15.94 profit. My execution was awful in that trade. In my next trade, I dumped my position in EFC for -$29.23 loss because I needed to free up cash and the stock wasn’t budging. My third and best trade of the week was when I decided to buy 3 SCTY Jun13 45 Calls at $5.00 for a day trade. I then sold around 30 minutes later at $6.00 for a +$269.86 profit. I nailed that day trade on the nose. Keep reading for more info about that trade. Overall on the week, I made a realized profit of +$256.57 and I am now up +$731.61 on the month. You can see all these trades on my profit.ly page. Now let’s get into this week’s watchlist. Before making any decisions based on this article, read my disclaimer and do your own research!! 

1.) Consumer Portfolio Services, Inc. (CPSS)

Last week, CPSS lost –.14 for –1.53%. I am still holding my long position of 500 shares and am down –$118 unrealized. CPSS is at $9.00 and my breakeven is at $9.236 average. I am down only 2.5% on the trade as a whole and am looking to sell at around $13.00+, my original price target. I am still in for the long haul on this baby.

2.) SolarCity Corporation (SCTY)

Last week, SCTY gained +13.67 for a total of +44.6%. What triggered this gigantic run up mostly came on Friday. On Friday, GS announced that they were going to give SCTY $500 million to do new projects with. This deal would give SCTY the capital to go ahead the construction of more that 110 MW (megawatts) of power generation capacity. This news event caused SCTY to bounce +26.09% to $45. I made +$269.86 from this gain as well. I was sitting in my third period class on my phone because there wasn’t any work to be done. I was checking stock quotes and I noticed SCTY was up ~9%. I looked for a news item, and found that they had made a deal with GS for $500 million. I was surprised by the fact that SCTY was only up 9% on this wonderful news. Because of this, I decided to sell EFC because it never moved and put some of that capital in 3 SCTY 45 Calls at $5.00. I put my phone away to concentrate on class for a bit, and then I pulled it out again next period. About 28 minutes after I had bought, these babies were up to $6.00 for an unrealized gain of +$300. I decided not to be greedy and sold for a +$269.86 gain for 20%. I plan to do some more of these same option trades on this one next week, whether it be puts or calls.

Notice: After this week, I will be out of school until next school year so I will be able to watch and trade for full days! Let’s bank guys!

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