Great return on SPLS after yesterdays dip. Called that one!

So as I mentioned yesterday Staples Inc. - SPLS - took a huge dive yesterday after releasing Q4 results and hitting expectations. There was a lot of profit taking and even more over reaction to a company that hit analysts expectations, but didn't blow them away. So needless to say my Jan 2013 Call option with $17.50 strike price took a huge hit. I lost all of the 46% gains from the day before and about 15% more than that even! HUGE hit for a one day swing. #OptionsAreRisky

After the SPLS stock took a 9.5% dive yesterday afternoon I saw a bottom forming and jumped in after Jan 2013 Calls with $15.00 strike price took a greater than 50% dive along with it. I sold my stake in Ford (F) and took some profits out to be liquid enough to buy on this great opportunity with a stock that has tremendous upside potential.

Then today when the world settled down and people came to their senses, SPLS had a 5% jump in stock price. I knew that was going to happen after yesterdays ridiculous sell off.  My original option gained the 46% back that it lost but it is still down a few percent from where I purchased it originally. And the new options I picked up yesterday gained 34% in one day!! Not bad huh!?

SPLS has along term trade potential here that is going to make me a lot of money on this trade. Well, I guess not a lot. I only have $1000 to start with. But all things relative, this is going to be a big one. I'll check back in tomorrow and let you know any updates.

PEP in the mean time had a down day, nothing I'm very concerned about, that's a long term trade that will probably have to wait till quarterly results to see a jump. Sticking with it.

Thanks for reading!

Straight from the Chart

Disclaimer:
Just to be clear, nothing that I'm posting on this blog is in any way advice that should be followed by anyone else. All investment decisions should be made carefully by all individuals taking into account their own financial situation and appropriate levels of risk. Do not take anything I say for anything more than it is, opinion, speculation, and woefully undereducated guesses as to how I think a few stocks are going to perform.