yonglonglai.com

Hi All,

January is a short month, only has 25 days to expiry (which includes Christmas and New Year holiday effectively making this into a 15 trading day month) The premiums are not as high as I would like but I guess that’s because everybody is not looking at the screen (i.e. on holidays, lower volatility)

Anyways, here are my trades I placed yesterday (this morning)

======================================
Uptrend for the past month so has plenty of support at the $30 level. INTC had a good earning report which will give NVDA a boost and also their recent earning report was favourable. (Especially for the next 25 days) Technically speaking, NVDA has broken its resistance line of $35.47 which is give it good momentum in the new year.

The Trade - 24/12/2007
NVDA
Options/Contract = 100
Buy 100 NVDA @ $35.68
Sell 1 NVDA $35.00 Call @ $1.97
Time Value: $1.29
Intrinsic Value: $0.68

Breakeven Point: $33.71
Assigned Return: 3.67% ($1.29/$35.00)
Unassigned Return: 5.62% ($1.97/$35.00)

======================================
Had to do this one because with a 6.13% buffer it would mean that I am below the support line for the past 4 months (i.e. its technically sound) I also checked out the fundamentals, its actually quite a good company, slightly low profit margins but apart from that, everything is pretty good for Tiffany & Co.

The Trade - 24/12/2007
TIF
Options/Contract = 100
Buy 100 TIF @ $46.31
Sell 1 TIF $45.00 Call @ $2.76
Time Value: $1.45
Intrinsic Value: $1.31

Breakeven Point: $43.55
Assigned Return: 3.22% ($1.45/$45.00)
Unassigned Return: 6.13% ($2.76/$45.00)

======================================
The Trade - 24/12/2007
MA
Options/Contract = 100
Buy 100 MA @ $212.69
Sell 1 MA $210.00 Call @ $11.11
Time Value: $8.42
Intrinsic Value: $2.69

Breakeven Point: $201.58
Assigned Return: 4.01% ($8.42/$210.00)
Unassigned Return: 5.29% ($11.11/$210.00)

======================================
This is an insane company, AAPL has broken its resistance and is at its all time high. Fundamentally and Technically this is a good stock, especially for long term portfolio.

The Trade - 24/12/2007
AAPL
Options/Contract = 100
Buy 100 AAPL @ $197.12
Sell 1 AAPL $195.00 Call @ $10.73
Time Value: $8.61
Intrinsic Value: $2.12

Breakeven Point: $186.39
Assigned Return: 4.42% ($8.61/$195.00)
Unassigned Return: 5.5% ($10.73/$195.00)

======================================
This is equivalent to the Google of China. biadu.com is a ‘rip-off’ of google and has been very successful. If they keep doing whatever it is that they are doing, they will one day become like google and compete in the same space. Right now they rule the China internet space. Like google, biadu doesn’t borrow money which helps during this credit crunch crisis.

The Trade - 24/12/2007
BIDU
Options/Contract = 100
Buy 100 BIDU @ $382.19
Sell 1 BIDU $380.00 Call @ $24.99
Time Value: $22.80
Intrinsic Value: $2.19

Breakeven Point: $357.20
Assigned Return: 6% ($22.80/$380.00)
Unassigned Return: 6.58% ($24.99/$380.00)

======================================
With recent earning announcement last week, RIMM should be going to be a good performer in 2008. Good amount of volatility means good premium.

The Trade - 24/12/2007
RIMM
Options/Contract = 100
Buy 100 RIMM @ $118.88
Sell 1 RIMM $115.00 Call @ $8.51
Time Value: $4.63
Intrinsic Value: $3.88

Breakeven Point: $110.37
Assigned Return: 4.03% ($4.63/$115.00)
Unassigned Return: 7.4% ($8.51/$115.00)

======================================

Have a safe and wonderful Christmas day!