However the order was triggered on the same day itself

However the order was triggered on the same day itself @ $8.40 when
the stock falls below the condition set. Having paid $6.80 for the time
value leaving behind $1.60 in intrinsic value for a 60 days option, is a
very expansive premium to pay as the IV was very high.


I took this trade because the negative divergence was very strong
bearing in mind that it is going to be a real short trade. Since only one
day the stock is down to closed at $68.12, the option premium has
increased to $10.30 giving me a profit of $1.90, a 23% returns.

The William %R indicator is at the bottom again sending me a
signal to take my profit get out. Money in my pocket is always better
than in the market.




Case Study #5 McKesson Corporation

MCK was the third bearish reversal trade I did together with ACOR
and ABT. It is the most profitable one indeed; I managed to pocket a
profit of 117% in 10 trading days. Spotted a “Dark Cloud Cover”
bearish reversal candlestick formation on my screener on 15 Jan 08
which have gapped up in the stock price three months ago and were
making higher highs since then.

Yesterday 10 Mar 08

Yesterday 10 Mar 08, after only one day the stock is down to closed at
$38.71, the option premium has increased to $7.90 giving me a profit
of $1.90, a 32% returns.

Looking at the chart the MACD histogram is now at negative territory
indicating a possible longer term bearish trend but William %R is at
the bottom signaling me to get out.

I took my profit when the market opens the next day and move on to
the next trade, remember always take your profit, don’t be greedy.
Move on.




Case Study #4 Agnico-Eagle Mines Limited

AEM was spotted a “Shooting Star” bearish reversal candlestick
formation yesterday on 19 Mar 08 before market opens which is due
for a market correction as is was trending for some time. It was
supported be a strong negative divergence present in the stock chart.
AEM was trading at $74.10 and the low was at $73.50 and the trading
plan for AEM entry was set up using a conditional order.

If stock price < $73.40, buy May 08 $75.00 Puts

Case Study #3 Goldcrop Inc

Case Study #3 Goldcrop Inc

GG was spotted a bearish reversal candlestick formation on 17 Mar 08
after market closed which maybe due for a minor market correction as
there was a negative divergence present in the stock chart. The stock
rating was 8 and the analyst recommendation was moderate buy
making this reversal play contrary.

GG was trading at $44.22 and the low was at $43.00 and the trading
plan for GG entry was set up using a conditional order.

If stock price < $42.90, buy Jul 08 $45.00 Puts

However the order was triggered the next day on 18 Mar 08 @ $6.00
when the stock falls below the condition set. Having paid $3.90 for the
time value leaving behind $2.10 in intrinsic value for a 120 days
option, I guess it all right as the maximum holding period is only 2
weeks. The time decay effect is not so damaging to this position.

A stop loss was then set if stock price is > $46.40, which is the high of
the reversal candlestick.

EGGS A LA REINE

EGGS A LA REINE
6 eggs
1/2 pint of chopped cold cooked chicken
1/2 can of mushrooms
2 tablespoonfuls of butter
2 tablespoonfuls of flour
1/2 pint of milk
1/2 teaspoonful of salt
1 saltspoonful of pepper
Use ordinary shirring dishes for the eggs; butter them, break into
each one egg, stand these in a pan of boiling water and in the oven
until they are "set." Rub the butter and flour together, add the milk,
stir until boiling, add the salt, pepper, chopped chicken and
mushrooms, and put one tablespoonful of this on top of each egg and
send at once to the table. This is also nice if you put a
tablespoonful of the mixture in the bottom of the dish, break the egg
into it, and then at serving time put another tablespoonful over the
top.
EGGS AU MIROIR
Cover the bottom of a graniteware or silver platter with fresh bread
crumbs, break in as many eggs as are needed for the number of persons
to be served. Put bits of butter here and there, stand the platter
over a baking pan of hot water in the oven until the eggs are "set,"
dust them with salt and pepper and send them to the table.
EGGS A LA PAYSANNE
6 eggs
1/2 cupful of cream
2 tablespoonfuls of grated onion
1 clove of garlic
1/2 teaspoonful of salt
1 saltspoonful of pepper
Add the onion and the garlic, mashed, to the cream; pour it in the
bottom of a baking dish, break on top the eggs, dust with salt and
pepper, stand the baking dish in a pan of water and cook in the oven
until the eggs are "set." Serve in the dish in which they are cooked.

EGGS DE LESSEPS && EGGS MEYERBEER

EGGS DE LESSEPS
Shir the eggs as directed. Have ready, carefully boiled, two sets of
calves' brains; cut them into slices; put two or three slices between
the eggs, and then pour over browned butter sauce.

EGGS MEYERBEER
To each half dozen eggs allow three lambs' kidneys. Broil the kidneys.
Shir the eggs as directed in the first recipe. When done, put half a
kidney on each side of the plate and pour over sauce Perigueux.

EGGS ON A PLATE

EGGS ON A PLATE
Rub the bottom of a baking dish with butter. Dust it lightly with salt
and pepper. Break in as many fresh eggs as required. Stand the dish in
a basin of water and cook in the oven five minutes, or until the
whites are "set." While these are cooking, put two tablespoonfuls of
butter in a pan and shake over the fire until it browns. When the eggs
are done, baste them with the browned butter, and send to the table.