Monday, March 30, 2009
Arena Day!
Today is the day the ARNA annouces its results!! But before that lets a do a quick recap of Friday's action.
The Dow lost 148.38 pointsto end up at 7,776.18. The SPX declined 16.92 pointsto finish the session at 815.94. We are in the green and looking ok.
The major markets all saw gains of more than six percent this past week, making it three consecutive weeks of gains. Stocks have benefited from positive comments out of the financial sector, better than expected economic news and the $1trillion toxic asset bail out plan. Nonetheless, the US economy remains in a deep recession and CNBC are reminding traders that one month of positive data doesn't mean the recession is over!! We shall see what this week brings.
Now on to ARNA. I know quite a lot of you have this play on so this is what I will be doing today.
The results will be annouced 1 hour before the market open today at 8.30am EST.
You can listen to the conference call if you like. All the details can be found here: http://invest.arenapharm.com/releasedetail.cfm?ReleaseID=373651
If anything extraordinary is going to happen then you will probably hear about it before the market open on CNCBC or Bloomberg so if you can try and watch the news!
Once the markets open, if the news is not good then I will close my position immediately and take a likely loss.
If the news is good I will watch it for a while, but still close my position some time today. If you do not have the ability to watch the stock then just close the play once the move has been made. Take your profits and run!
The third option if the news is good is to place a trailing stop. You will need to ask TOS how to do this or place it for you, but for example, if you bought call for $2.00 and then at the open it is trading for $5 then you could put a stop in saying that you will automatically close your trade when the price falls 10% from its intraday high. That way if the calls increase in value during the day to $6 and then fall back to $5.40, you will automatically be stopped out $5.40. Using a trailing stop you can perhaps catch some more intraday move up. If you are not stopped out though come the end of the day I would still close the play today.
Whatever you do just remember please the saying "nobody ever went bust making a profit".
Hopefully later today we will be sitting on some nice profits.
Until next time.
The Dow lost 148.38 pointsto end up at 7,776.18. The SPX declined 16.92 pointsto finish the session at 815.94. We are in the green and looking ok.
The major markets all saw gains of more than six percent this past week, making it three consecutive weeks of gains. Stocks have benefited from positive comments out of the financial sector, better than expected economic news and the $1trillion toxic asset bail out plan. Nonetheless, the US economy remains in a deep recession and CNBC are reminding traders that one month of positive data doesn't mean the recession is over!! We shall see what this week brings.
Now on to ARNA. I know quite a lot of you have this play on so this is what I will be doing today.
The results will be annouced 1 hour before the market open today at 8.30am EST.
You can listen to the conference call if you like. All the details can be found here: http://invest.arenapharm.com/releasedetail.cfm?ReleaseID=373651
If anything extraordinary is going to happen then you will probably hear about it before the market open on CNCBC or Bloomberg so if you can try and watch the news!
Once the markets open, if the news is not good then I will close my position immediately and take a likely loss.
If the news is good I will watch it for a while, but still close my position some time today. If you do not have the ability to watch the stock then just close the play once the move has been made. Take your profits and run!
The third option if the news is good is to place a trailing stop. You will need to ask TOS how to do this or place it for you, but for example, if you bought call for $2.00 and then at the open it is trading for $5 then you could put a stop in saying that you will automatically close your trade when the price falls 10% from its intraday high. That way if the calls increase in value during the day to $6 and then fall back to $5.40, you will automatically be stopped out $5.40. Using a trailing stop you can perhaps catch some more intraday move up. If you are not stopped out though come the end of the day I would still close the play today.
Whatever you do just remember please the saying "nobody ever went bust making a profit".
Hopefully later today we will be sitting on some nice profits.
Until next time.
# posted by Paul @ 3:30 AM 
