Surprises from NCTY and STP

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…

NCTY 5 day chart (16 Nov 2006)

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…

STP Stock Chart 16 Nov 2006


2 Responses to “Surprises from NCTY and STP”

  1. planetim Says:

    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.

  2. xcalibus Says:

    Visited your blog. planetim. Nice theme.

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