The following is a recap of the current positions for Premier Markets.
American Airlines Daily Chart
On 4/10/01 we bought 2 call options for $1.95 on American Airlines (AMR) when the stock traded $34.50. We were targeting a price of $38 and placing a stop at $33.70. The stock traded lower after the first day, but the trend line held prices above our stop. Yesterday the stock took off, and we came within inches of our target. It was tempting to take profits, but since we have May calls, we can give it a little room to move. Prices are currently at $37.92 by the time I typed this, so we could be selling this position shortly.
Barrick Gold Daily Chart
On 4/17/01 we took a half position in Barrick Gold (ABX) at $15.66. We are targeting $17.25 and have a stop at $14.88. Prices are currently at right at are entry price of $15.66.
Worldcom Daily Chart
The weakest link of are long plays is Worldcom (WCOM). We entered into a full position on 4/12/01, at $19.55. Our target was $26.00, with a stop at $18.40. WCOM hasn't cooperated, currently at $19.45, but hasn't stopped us out either. We considered writing some covered calls when the trend line was violated, but they were only going for 20 cents. This stock still has potential if it can get above 20.
Avon Products Daily Chart
One stock we like on the short side, if it traded below $38.77, was Avon Products (AVP). It did so on 4/12/01, and we are targeting $31.00 with a stop at $40.25. Avon hovered around our entry price for three days, but broke down yesterday, and is continuing its decline today, down 0.92.
This is our hedge play. Today we bought two S&P 500 May 1250 puts, with a target of 1205. We covered this play in our 9:30 update, so I won't go into the details.