PFE Put-23 Jan 07

The stock was trading around a price of $26.29 on 23 Jan 07. The chart above is a daily chart of the Pfizer Inc. [PFE]. The stock is rated as an average stock because it is fairly valued compare to its industry, its sector and the S&P 500. This trade was made mid-day on Tuesday. The trader selected the stock because overall it is in a downtrend, trending lower since its high set back in September. As the trader has mention, the stock does have wild price swings to it but it does have a very strong resistance level above. It just reported unfavorable earnings and so the trader believes that prices will yield to weakness and fall lower towards support near the $23.25. Of course, once this happens the Put option will increase in value.

Buy a June 25 Puts at 0.60

Bear Call Spreads

GSF – GlobalSantaFe Corp
GlobalSantaFe Corporation, through its subsidiaries, operates as an offshore oil and gas drilling contractor worldwide. It provides offshore oil and gas contract drilling services to the oil and gas industry on a daily rate basis

Sell Feb 60 call at 0.80
Buy Feb 65 call at 0.35
Return 0.45
9.89%

Technicals: The stock peaked in April at a 52-week high of $65.21 and then prices promptly fell to a 52-week low of $44.26 set in October. After the low point, prices turned around and traded up to but fell short of resistance at the $65 level. Once the stock failed to make a new high prices quickly slipped below the support area of the 30-dma and continue to trade lower on increasingly strong volume. The stock trades in the energy/oil well services & equipment industry which continues to pullback from an area of overhead resistance. Currently the MACD’s are yielding a sell signal while the Stochastics are showing a flat reading.

Goals setting for 2007

100% confident, no fear, no frustration
Never hooked taking trades I shouldn''t
Trade offensively vs deffensively
Never beat myself on a losing trades
Never trade attacking my ego
Never rush into trades without preparation
Trade with NO stress
No big swins in profitability
Always discipline to stop as planned
Never get exhausted after the trading day
Sleep well at night
Spend time with my family
Execise moreFollow trading
PlanAdjust losing trades
Network with elites