My Options Trading Journal

7-May BMO: CLHB, FCN
8-May AMC: PCLN

Earnings Date: 26-Mar-08 AMC

Ticker: RBN

Company: Robbins & Myers, Inc.

Industry: Diversified Machinery

Summary: Robbins & Myers Inc. is engaged in supplying of engineered equipment and systems for applications in global energy, industrial, chemical and pharmaceutical markets. The segments in which the Company operates include Fluid Management, Process Solutions and Romaco. The Fluid Management segment is comprised of the R&M Energy Systems, Moyno and Tarby product lines. The Process Solutions segment is comprised of the Pfaudler, Tycon Technoglass, Chemineer and Edlon product lines. The Romaco segment includes the FrymaKoruma, Noack, Siebler, Macofar, Promatic, Unipac and Bosspak product lines. As of March 31, 2007, the Company sold its Zanchetta product line. Subsequently, it also sold off Hapa and Laetus product lines.

Gapping Analysis: Stock price gapped up 4/4 in past four earnings.

Technical Analysis: Uptrend & close to 52-week high

Fundamental Analysis:

MSN rating: 8
Avg Daily Vol: 418k
Closing price (24-Mar): $38.20
Target FY end: $47.34 (3 Anaylsts: High)
Debt/Equity ratio: 0.24 (Industry: 0.42)
ROE (TTM): 13.60%
ROA (TTM): 7.2%
Net Profit Margin (TTM): 7.8%.
Short Ratio: 8.9

Insider Trading: No significant buying recently.

News:

25-Mar-08: Announced regular quarterly cash dividend payment of $0.0375 per share. Dividend is payable on 8-May-08 to shareholders of record as of 9-Apr-08.

9-Jan-08: Raised Q108 EPS guidance of $3.30-$3.50 to $3.55-$3.75 on the strength of first quarter performance. Established Q208 EPS guidance of $0.78-$0.88.

9-Jan-08: Announced 2-for-1 stock split. Shareholders will receive one additional share for each common share of the Company owned as of 4-Feb-08. Additional shares will be issued on 28-Feb-08.

Action:

24-Mar-08: BTO Apr08 40 C @ $2.00
26-Mar-08: STC Apr08 40 C @ $2.40 when market starting to drift lower after Dept of Energy reports lower than expected crude inventories. Looking for better opportunity to buy back at <$2.00 price.

Results:

RBN beats by $0.01, beats on revs; guides Q3 EPS in-line; raises FY08 EPS in-line.
Stock closed at $42.22 but dropped to $39.35 after earnings report.

Learning:

IV increased in the afternoon and Apr08 40 Call closed at $4.90. Made two mistakes in this trade. Could have closed the position at $3.60 before the New Home Sales report. Otherwise, should have waited to close before market close to make full use of the higher IV.

Read the news on “Apple lowers iPhone shipment projection for fiscal 2Q08″ just after market opened.

BTO Feb08 130 Put @ 4.30

AAPL went down to day low of 132.01 and bounced back to 137.80 after market closed.

TIFFANY & CO. (TIF) opened lower but rallied to resistance line at around 38 when DOW reduced it’s loss to -50 points.

BTO May08 35 Put @ 3.30

I’ve focused more on the much aggressive strategy in Jan and made some mistakes along the way due to greed and fear. Jan08 Portfolio gain (account closed on 18th Jan) is -6.12%.

Jack in the Box Inc. (JBX) owns, operates, and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Grill (Qdoba) fast-casual restaurants in 42 states. The Company also operates a chain of convenience stores called Quick Stuff, with 60 locations, each built adjacent to a full-size Jack in the Box restaurant and including a fuel station.

JBX gapped up on 16-Nov due to better than expected earnings, but was trending down ever since then. The stock broke below a bear flag price pattern on 11-Jan and attempting to challenge the resistance today but made an U-turn after moving just above the daily S1 line (23.60). JBX will announce earnings again around 21-Feb.

BTO Jun08 22.50 Put @ 2.30

Here’s another ascending triangle from Option Addict watchlist. Thanks again Jeff. OM Group, Inc. (OMG) is a vertically integrated international producer and marketer of value-added, metal-based specialty chemicals and related materials. The Company applies technology to unrefined cobalt and nickel raw materials to market more than 775 different product offerings to approximately 1,900 customers in over 40 industries.

OMG broke out from bullish ascending triangle and closed above resistant line with high volume on 7-Jan. Bought 65 Call @ 4.50 last night when it started to bounce off from daily pivot point of around 60.78 shortly after 12am EST.

Stop loss trigger placed at 60.50. Learned from mistakes in previous two loosing trades KWK & EOG, and have stop loss order in placed, just in case I could not be in front of my computer to close the open position.

Barrick Gold Corporation (ABX) is gold mining company. It generates revenue and cash flow from the production and sale of gold and copper. The stock shot up to new all time high with exceptionally high volume in the past two trading days. Despite the bearish market today, ABX maintained its position and was down only slightly, and closed at 47.90, just a little below yesterday’s closing price of 48.71.

BTO Apr08 47.5 Call @ 5.00

Here’s another trading idea from Option Addict’s watchlist. Thanks Jeff again. EOG Resources, Inc. (EOG), together with its subsidiaries, explores for, develops, produces and markets natural gas and crude oil primarily in major producing basins in the United States of America (United States), Canada, offshore Trinidad, the United Kingdom North Sea and other international areas.

EOG broke out from the ascending triangle pattern yesterday. Bought a Apr08 90 Call @ 8.30 when the uptrend was confirmed earlier today.

Got this trading idea from Option Addict’s watchlist. Thanks Jeff. Quicksilver Resources Inc. (KWK) is an independent oil and gas company engaged in the development and production of natural gas, natural gas liquids and crude oil, which it attains through a combination of developmental drilling, exploitation and property acquisitions.

KWK closed just above 52-wk high resistance of 60.49 on 28-Dec, but came back down on 31-Dec. Bought a Mar08 60 Call @ 5.50 when it crossed the resistance again with strong volume last night. KWK closed at 61.90.