Weekend Update for 5/09/10

Here is the link to the first of 4 videos.

http://www.screencast.com/t/NDI4ODhmZj

Hi guys, hope you all had a great weekend and Mother'd Day

I recorded some videos earlier today and had to do some of them over. I am having issues with my recording software and once they are resolved I will get the video links posted on here. Thank you for you patience.

BPOP update

I have shaved off most of the position but am still holding some of the Jul 3 call strike options. Today however, there have been over 19,700 contracts traded on the front month may 3.50 puts. The Chart is starting to roll over a bit here and looks like it might pull back to the 3.25 area. The volume is lighter on this pull back though. We still have time in this position and technically it is a free trade as we have shaved off several times including a piece at 300% . i will continue to hold some of the position and maybe add on a pull back to the 3.25 area, depending on how the markets are doing at the time and how BPOP is doing. Currently I have my stops on the remaining position on a close below the 50MA.


BPOP daily


BPOP Option Chain intra-day

IWM and QQQQ

The IWM which has led this rally for several months, closely followed by the QQQQ's are lagging this sell off when compared to the SPY and DIA. They are also very close to the 38.2% retracement form February low's though. If they catch up to the SPY's and DIA's sell off which would see January's highs, there is still room to the downside 5% on the IWM and about 2.5% on the QQQQ's respectively.


IWM


QQQQ

Markets at sensitive areas of Support here

The SPY and the DIA have pulled back to sensitive areas of support. These levels also coincide with the 38.2% Fibo retracement which come in at the 107.15 level on the DIA and 115.42 on the SPY. These levels should hold and might offer some buying opportunities. Although if these levels give out the bulls can experience further pain.



SPY


DIA

CAL & UAUA update

Continental Airlines did not get the spike I was looking for. The deal ended up being a stock deal that gave every Continental share holder 1.05 UAUA shares. I got stopped out the rest of the jun 21 calls for a nice gain, stopped out of the 24 and 25 calls for a small loss.

Continental and United set to Merge

Continental and United set to release merger deal information on Monday. I mentioned this in a previous Video post. Appears to be an all stock deal, for those who took the CAL jun 21, 24, and 25 call options with me. We are in the green handsomely in these positions and looks like the deal will be finalized by the 4th Quarter. Appears that Continental share holders will get 1.5 United shares. When I get back into town this week I will review and calculate our positions to see how we might benefit best. Here is a quick link to some news on the merger.


http://www.nytimes.com/2010/05/03/business/03merger.html?hp