Wednesday, 24 January 2007

Watchlist addition
PHI - Philippine Telephone

Tradeable issues found
Found multiple issues both with TTC-A and MACDV, as markets started to raise the day before. So, the big job was to do the...

Sorting
I was looking for good volumes for a real confirmation, CAM and CRS fell out. Then I was checking the IBD figures (CANSLIM), where BUCY has fallen out.
Got still VIP, AYI, MBT and PHI left to figure. The later three were leading in up volume change though AYI still did not have enough open interest. Sorry, you're out AYI!

Trade candidates notes
MBT - historic to implied volatility seems ok (really close and implied was lower).
PHI - really large bid-ask spread. Is it a good sign? But implied volatility is below historic @ 16.
VIP - was looking also fine, and options seemed cheaper than MBT.

Finally, I have made my choice and set myself up for a VIP Apr 90 C trade. But when I first tried to open the position I calculated 4.5 being a fine limit halfway in the spread. A half an hour later I have noticed the spread has moved higher leaving my limit price in the blue. 2 hours later after an exhausting Watchlist overview (more about it further down). I have cancelled and reopened the position (only 2 contracts instead of 3 though) at 4.8 limit. We will see...

Watchlist review
I have pulled up all charts in optionxpress.com's java charting facility that I quite like. Checked all issues on my 149 strong Cooperian watchlist. And figured if there are issues (there were 21) interesting for any meaningful reason - I have been looking at IBD buypoints. In fact issues that were pulling back / retracing to test the 50 day SMA after a serious uptrend.

Open position changes
My Deck Mar 60 Call has performed quite ok ~10% north of open, but still $160 in the red.