UNG

UNG - US Natural Gas Fund $16.30 at 10:09am

Opened a cash secured put position on UNERO JUN15 PUTS @ 80 cents this morning.

Sell to open UNERO @ 80 cents.

Following the footsteps of Mr. Ed.

MS

MS - Morgan Stanley is pricing a 146 million share secondary offering at $24. If you can buy MS at the low $24's, I think it is a buy. Sell when you are happy or sell some calls after the rise. Don't chase it though.

This post is contrary to the post I made several days ago on MS. Situations change. You as a trader should be fluid and dynamic with the market. I was looking for a short position on MS several days ago and now I am going long?!? Sometimes things change.

For the time being, the government is backing all the 19 stress test banks.

I will post if I get the chance to open a position.

MS

MS has tracked back up to the daily trend line. It broke the trend last week and I missed the trade. It might be setting up for another chance at a short. Just watch your smaller charts for signs of weakening and possibly short the stock. Stress test results next week could make MS very volatile. Keep that in mind. You can by calls for protection relatively cheap so you can sleep at night.

The $26-$27 area is resistance with 3 tests in the last 2 months or so. Stop out at $28 if the short goes against you because it could breakout from there.

SGR

SGR (Shaw Group Inc) - Opened a cash secured put position on JUN25 PUTS SGRRE @ $1.40

SELL TO OPEN SGRRE at $1.40

This is a riskier trade than normal, but I think its a great entry area. The news that drove it down this low is really not that bad. It is back down to the pre-reaction level. $25 is well below the $27 support area. I would be happy owning this company at $25 is I am put the stock. My cost basis would be $23.60.

I will update once the order is filled.

MDR

MDR - I just bought back the puts on MDR for $.70. Made a 33% GAIN in 2 days. I did this because I think there will be a market pullback and the underlying stock could go down.

MDR

McDermott Intl (MDR) - If it drops below $16, bail out or buy MAY15 PUTS.

MDR

McDermott Intl (MDR) - Sold MAY15 PUTS (MDRQC) @ $1.05 today. Stock is on an uptrend and there is unusual option activity. This is more of a trend/speculative trade than an income trade.