Shares of The9 Ltd. (NASD:NCTY) shot up a day after the company reported a sharp rise in profit and the completion of server upgrades that slowed it down in the quarter.
I comtemplated a straddle play days before but decided against it as it will half my ROI and double my loss potential. Lucky for me, I stuck to my out-of-the-money call.
Shares hit as high as $29.20 before closing at $28.36. I exited my call position early when shares were trading at around $27.60 about one hour into trading. Bought my NOV 25 call for $0.60 and sold them for $2.20. Hooray!
Hmm… I should have held out for more but since it had hit almost 300% ROI, I thought better not coz actually, I didn’t think the earnings report was that fantastic though…
What a beautiful chart…
Alas! My overall portfolio value took an unexpected dip though due to a strange sudden decline of my Suntech Power (NYSE:STP) position.
What an ugly chart…
November 17, 2006 at 11:54 pm
Just started my own blog on my covered call trades. Will look forward to what you are doing. It is definitely a learning situation for me.
November 18, 2006 at 2:59 am
Visited your blog. planetim. Nice theme.