LVS

Posted on April 19, 2011 by admin

LVS was moving lower earlier today.  I entered a bull debit spread of long 43 and short 44, cost $.85/pair.  Potential profit $0.15.  Expiration in 2 days.  LVS’s chart is bullish.  Even when the market was dropping 1% yesterday, LVS gained.  The odds of LVS stay above 44 until Thursday is pretty high.  So I entered the trade.

Note: this type of spread is of high risk and is not recommended for those inexperienced and with weak hearts.  Take the above case as an example, the cost is 0.85 and the potential profit is 0.15.  There is a chance that one may lost the entire 0.85 cost.  In my case, however, I am net short on LVS (I own 10000 shares of LVS and short 222 contracts of LVS Sept contracts).  So if LVS falls and I may lose money on the spread, the LVS Sept contract will also fall.

About admin

Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
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2 Responses to LVS

  1. Reggie Zhan says:
    April 19, 2011 at 9:50 PM

    Casino stocks are rejuvenated recently. I like WYNN better.

  2. admin says:
    April 19, 2011 at 9:57 PM

    I don’t think WYNN has weekly options.

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