Thursday, June 2, 2011

Scalp Trades Dated 2/6/2011

1. Scalp traded today :-

AMFIRST - sold 1.17
ATRIUM - sold 1.06
SUNREIT - sold 1.08
PLUS-CC - sold 0.245

2. Sold all my PLUS-CC at 0.245sen with a quick profit first, though, mother share seem steady. :) Now, this is a buy call from me for PLUS-CC as we enter second day but only at 0.24sen as anything more than that would likely have slim margin of profit only provided mother share surge higher. I will "show hand" on this at 0.24sen tomorrow as i am very sure this is a winning game. Wish me luck. :)

3. There is a question raise by a cyber friend ck5354 as below :-
ck5354 // June 2, 2011 4:47:00 PM GMT+08:00
Why you not consider bjcorp cc??
Also at negative premium

Why i pick PLUS-CC instead of BJcorp-CC ? the answer is the risk assessment i did here. Just take a look at these 2 stocks carefully:-
Which one is more steady in term of price movement ? of course the answer is PLUS. The opposite would be BJCORP where it is more volatile on the other hand. Take further look at their Call Warrant, PLUS-CC has a ratio of 4:1 and BJCORP-CC has a ratio of 2:1. By looking at this, common sense will tell you BJCORP-CC would be more responsive in relation to mother share of BJCORP. So, just imagine, if mother share move 2sen mean BJCORP-CC would move a bid, this is what a ratio basically meant. Okay, we should have enough information at this moment, we've a steady PLUS and a volatile BJCORP. At this moment BJCORP-CC would roughly worth about 0.085+, so whoever bought at 0.085sen today is rather high risk, cause, every 2sen mother move down would mean 0.005sen shrinking of profit. It would also meant that 2sen here represent a 50% risk for BJCORP-CC and see what is the ratio of PLUS-CC, a 4sen ratio would mean only 25% risk. Which mean 4sen move with 1 bid move for CW, pretty low risk right? Another factor is, i believe the entire market would agreed with me that PLUS is 80% more steady than BJCORP. right? See.... the reason why i pick PLUS-CC instead of BJCORP-CC. A more or less sure win, low risk pick. :)


ck5354 said...

Hi Horse,

Can give me your email?

Or u send an email to me.

Got something to discuss with you.

lofan73 said...

no one shoe fits all

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