Andrew Keene, purveyor of KeeneontheMarket.com, offers up his Trade Of The Day:
Trade of the Day (MWW) 1.26.2012
Trade: Buying the MWW March 7 Calls for $.75.
Profitable: I make money on this trade if MWW Closes above $7.75 by March 16, 2012.
Break-even: I break-even on this trade if MWW Closes at $7.75 by March 16, 2012.
Unprofitable: This trade is unprofitable if MWW Closes under $7.75 by March 16, 2012. The most I can lose on this trade is the amount I paid for these Calls, $.75.
Reason I like this Trade: This is a very contrarian trade, but when I saw a customer sell 4700 MWW Feb 7 Puts for $.20 on an opening position, I knew I needed to get long MWW. However I did not want to get LONG Feb 7 Calls, so I bought myself a little time and bought the March 7 Calls for $.80 then $.70 to average at $.75. I think that if MWW can hold $7, then it has a chance of trading to $9 again despite a terrible quarter.
Please feel free to email me with any questions at andrew@keeneonthemarket.com.
Related articles
- Keene’s Trade Of The Day: January 25 (snspost.com)
- Keene’s Trade Of The Day: January 24 (snspost.com)
- Keene’s Trade Of The Day: January 23 (snspost.com)
PERL Mortgage
