Closed Off Trade On InvestTools (SWIM) CALL Options, Made Nice Profit
by Das Brain
I bought InvesTools (SWIM) CALL contracts with a strike price of $12.50 expiring January 2008, option symbol UKHAV back in mid July and since then all financial stocks in the U.S markets took a big blow to the head including InvesTools. The stock price dropped from about $12 down to $9.50. I average down my trade, as based on my research InvesTools is a solid company.
InvesTools (SWIM) has reported strong customer acquisition numbers and increased their revenue by 86% according to their last financial report. The company has an investor education division, a discount brokerage division called ThinkOrSwim.com that has a great trading platform and plus they own Prophet.net which is an amazing advance stock charting platform. My OptionsXpress.ca account actually uses Prophet.net real-time charting, it is a powerful technical analysis tool and I love it My opinion is that the stock was unfairly punished back in July, InvesTools had nothing to do with sub-prime mortgages.
Below is the chart and details of my trade:
Date Symbol Buy/Sell #Contracts Price Total Commiss
July 16 UKHAV BUY 7 1.25 $875 32.24
July 17 UKHAV BUY 3 0.95 $285 25.24
July 26 UKHAV BUY 3 0.80 $240 25.24
Aug 03 UKHAV SELL 7 1.80 $1260 32.24
Aug 06 UKHAV SELL 3 1.85 $555 25.24
Aug 07 UKHAV SELL 3 2.35 $705 25.24
Profit = $2520 - $1400 - $165.44 = $954.56 USD
Not bad for 3 weeks wait.
As you can see InvesTools (SWIM) stock price has shot up to a little over $13, however the stock price has hit a high of $14. From my chart technical analysis it looks a bit over extended and it will pull back to around $12.50. When it hits that level, I will re-consider buying some January CALL contracts on it again.
Please read my disclaimer.
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