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Opened a WDC today, this one is in the money - chasing the premium for this one. Jowy, my girlfriend actually bought some of these shares last week and I was actually telling her it was a good trade as long as it stays above $20.5 because there is plenty of support there. Today was a huge up day with plenty of volume support and is looking like a double bottom formation. That being said, the trade is good because there is plenty of support at $20.5 I also entered this trade to ‘diversify’ my portfolio. Most of my current holdings are resources and that one Newscorp from last month. Decided to chase the money for this one, I could have got about 12c for a 50c spread which is one strike lower (20.5/20) but opted for this one…

Lets see how it goes! I’m still on a look out for one more trade for this month. something not in a resource sector, wouldn’t mind a bank… was actually looking at ANZ, but it has already moved up. So have to see how it is tomorrow and for this week.

Anwayys, very busy this week! so many things happening, so will keep this on short

The Trade (WDC) - Traded on 29th May 2007
Sell Jun $21.0 Puts @ $0.445
Buy Jun $20.5 Puts @ $0.25

Expiry = 28/06/2007
Share/Contract = 1000
Max Profit = 0.195 (0.445-0.25)
Max Risk = 0.305 [(21.0-20.5) - (0.445-0.25)

Return on Risk = 63.93%
Breakeven = $20.805

I opened 10 contracts:
Reward for trade (excluding fees) $1,950.0
Reward for trade (including fees) $1,740.6
Value At Risk $3,050.0