Keene: Trade Of The Day – Buying the SUPERVALU (SVU) April 8 Calls for $.80

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Keene: Trade Of The Day – Buying the SUPERVALU (SVU) April 8 Calls for $.80 by Andrew Keene | This entry was posted on Friday, December 23rd, 2011 and filed under Stock Market Comments Off

Profitable – I make money on this trade if SVU closes above $8.80 by April 20, 2012.

Break-even – I break-even on this trade if SVU closes at $8.80 by April 20, 2012.

Unprofitable – If SVU closes below $8.80, this trade will be unprofitable. The most I can lose is the amount I paid for the calls, $.80.

The reason I like this trade: Using unusual options activity once again, I saw a huge seller of SVU Jan 7.5 Puts for $.15. This could be a possible closing, but I think that SVU has more upside. I wanted to give this trade plenty time, so I bought the April calls. The stock is often in rumors of being bought as well Hence, I will be looking to take partial profits on a run up and possibly add on to the downside. Please feel free to email me with any questions regarding this trade at Andrew@KeeneOnTheMarket.com.

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Michael Kudrna

(Wednesday, Jun 12. 2013 2:31 PM)

For MikeC, Missed you in chat. For your stock, 10.50 is key support where I’d draw a line in the sand. Above 11.25 would likely make it run higher on a breakout. Currently it’s consolidating nicely with upside potential, but if it doesn’t break out on the first attempt, look for another pullback towards 10.75 area, above support, to possibly reload your position. Easy money seems to have been made, so keep expectations realistic. Hope that helps.

[reply]

Michael Kudrna

(Wednesday, Jun 5. 2013 9:39 AM)

Still no signs of a strong enough support level in GST to start adding more to the position. Will wait patiently to add, but $2 seems more and more likely as it drifts lower

[reply]

Michael Kudrna

(Tuesday, Jun 4. 2013 10:54 AM)

watching and looking to add another increment in GST around 2.44 as it seems to have found short-term stability

[reply]

Michael Kudrna

(Monday, May 20. 2013 11:10 AM)

Keeping tight position in DEJ until we get confirmation of no short-term dilution from management. As Zacks noted, cash ratio is slightly under what they need to keep financing.

[reply]

Michael Kudrna

(Friday, May 17. 2013 12:56 PM)

Added back to GST and looking for the chart to grind higher. Easy money seems to be made, so keep a close eye on your positions.

[reply]