Andrew Keene, purveyor of KeeneontheMarket.com, offers up his Trade Of The Day:
Trade of the Day (SEE) 1.31.2012
Trade: I bought the SEE March 20 Calls for $.80.
Profitable: I make money on this trade if SEE Closes above $20.80 by March 16, 2012.
Break-even: I break-even on this trade if SEE Closes at $20.80 by March 16, 2012.
Unprofitable: This trade is unprofitable if SEE Closes under $20.80 by March 16, 2012. The most I can lose on this trade is the amount I paid for these Calls, $.80.
Reason I like this Trade: I have never heard of this stock before today, but that does not mean that I can not trade it. I got first flagged to this stock when a customer bought 1600 February 20 Calls for $.60 then a customer went on to buy April 22.5 Calls for $.25. I jumped on board and bought the March 20 Calls for $.80. With a settlement with W.R. Grace and stock ripping above the 200 Day Moving, I think it has more movement to the upside, but I always want to define my risk vs reward, so I bought Calls instead of buying stock naked. Please feel free to email me with any questions at andrew@keeneonthemarket.com.
Read more about heard by www.keeneonthemarket.com
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