Matt's Trade Log - 9/5/08

Two trades today:

• Buy 1 BIDU SEP08 380/390 vertical call spread
• Sell 2 FSLR OCT08 230/260 vertical call spread

The first trade was to exit an existing position. This filled at $.05 which I consider to be a point where there is so little left to gain that there is no reason to hold the spread any longer, regardless of the time left in it. That spread was initially sold for $2.50 for a profit of $2.45.

The second trade was to enter a new position due to FSLR's sudden drop. The drop is so sharp that it appears to have completely broken support which was at about 250. This will make the other existing SEP08 250/260 vertical put spread a loser unless something amazing happens next week. Right now I'm just trying to hedge my losses. Problem is, I'm generally bullish on FSLR, so I don't know if this was a good idea or not. Still the technical analysis on FSLR seems to indicate that a sharp rise through 250 again in the near term is unlikely. We'll see.