Sold -2 OIH 100 AUG 09 105 PUT @6.70/6.80 Mark 100.25

Here's finally a trade that played out as planned. I've exited half of my Oil Services ETF (OIH) short this morning as OIH briefly broke below my target of \$100. It bounced back up slightly while the market marked a higher intraday low. In addition, Goldman Sachs (GS) was off its low too and holding while OIH tested 100 again a couple of times.

Looking at the minute chart of Figure 1, notice the huge volume right at 10:30am when OIH tested 101.30 a third time and the subsequent diving of the price because of the big volume.

Update: I've sold my other option a few minutes later for 6.80. The market keeps making higher lows while the TICK touch -800 (low of day so far) again.

Profit = [(6.70 - 4.60) + (6.80 - 4.60)] * 100 - (\$7.5 commission) * 3 = \$407.5

[caption id="attachment_1637" align="aligncenter" width="500" caption="Oil Services ETF (OIH)"][Oil Services ETF
(OIH)][][/caption]

[Oil Services ETF (OIH)]: http://traderpau.files.wordpress.com/2009/07/2009-07-29-oih.png

Posted 29 July 2009 in stocks.

Bought +2 OIH 100 AUG 09 105 PUT @4.60 Mark 103.63

Minutes after exiting my 110 puts, I'm back in now. Oil Services ETF (OIH) broke \$104.30 on the upside but failed to hold it for more than a few minutes. This coupled with the fact that the market (i.e. S&P500) broke 980 again and also failed to hold it for more than a few minutes.

Anyway, my previous analysis still holds. However, my position is 2/3 of last time.

Entry: \$103.63

Exit: \$104.30

Target: \$100

Reward / Risk = 3.63 / 0.67 = 5.4

[caption id="attachment_1634" align="aligncenter" width="500" caption="Oil Services ETF"][Oil Services ETF][][/caption]

[Oil Services ETF]: http://traderpau.files.wordpress.com/2009/07/2009-07-28-oih1.png

Posted 28 July 2009 in stocks.

SOLD -2 OIH 100 AUG 09 110 PUT @7.41

I'm out of my OIH puts at a miniscule profit of \$62 - \$15 commission. Particularly in light of the fact that the drawdown for this trade was over \$300 at one point when OIH touched \$108.29.

I got out today because there still isn't enough volume even when it tanked today. So there didn't seem to be momentum carrying it down. Furthermore, the TICK kept rising since late in the morning.

[caption id="attachment_1630" align="aligncenter" width="500" caption="Oil Services ETF"][Oil Services ETF][][/caption]

[Oil Services ETF]: http://traderpau.files.wordpress.com/2009/07/2009-07-28-oih.png

Posted 28 July 2009 in stocks.

Bought +2 OIH 100 AUG 09 110 PUT @7.10 Mark $105.38

The market went vertical this morning and S&P500 broke 975 briefly. It has now been holding at 975 for several hours now. This definitely feels like it's going go higher... Hard to imagine since we've been positive every day for almost two weeks now.

With many stocks hitting their long term resistances, I am putting my chips in one more time for the shorts. This definitely feels very difficult since nobody can deny the recent case of bullish fever. But from looking at the charts, this is what I should do at this moment based on my strategy.

Entry: \$105.38

Exit: \$107.8, see Figure 2

Target \$92.50, see Figure 2

Reward / Risk = 12.88 / 2.42 = 5.3

Update: OIH is testing \$106.50 at 3:30pm. It sure feels like I jumped in front of a freight train! But I'll stick to my strategy nonetheless. Although I might tighten my stop if this train keeps chugging tomorrow.

[caption id="attachment_1616" align="aligncenter" width="500" caption="Oil Service HOLDRs ETF"][Oil Service HOLDRs
ETF][][/caption]

[caption id="attachment_1617" align="aligncenter" width="500" caption="Oil Service HOLDRs ETF"][Oil Service HOLDRs
ETF][][/caption]

[Oil Service HOLDRs ETF]: http://traderpau.files.wordpress.com/2009/07/2009-07-23-oih.png [Oil Service HOLDRs ETF]: http://traderpau.files.wordpress.com/2009/07/2009-07-23-oih_prop.png

Posted 23 July 2009 in stocks.