Thursday, August 24, 2006

A Winning Trade on PDCO


Paper traded a put option on Patterson Companies Inc. (PDCO) on 23 Aug 2006, eve of earnings announcement. On 24 Aug 2006, PDCO dropped $1.30 to $31.50 around 9.45am EST. At 10.05am EST, PDCO reached $31.50 (-$1.30). Sold my put option for a profit of about $500.

The drop was because PDCO Patterson Companies missed their 1st Quarter EPS by $0.02 though their revenue rose 10.0% y/y to $655.5 mln vs. consensus of $654.1 mln. PDCO also issued downside guidance for FY07, sees EPS of $1.54-1.57 vs. $1.58 consensus.

The above was one of the technique taught by Dr Clemen Chiang to trade equity options when I attended the Live Freely Options Trading Seminar Workshop (Singapore). I graduated from Batch 14.

I'm still working hard to maintain consistency in achieving profitable trades.

Wishing you Profitable in your Trading too.

Yours Sincerely ,
Tony Chai


Emini Day Trader said...

Great blog. Nice job you've done here.


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paul meyer said...

Congratulations on your winning trade. I'm adding you to my investor blogroll. I feel your journal is very beneficial. How long have you been trading for? I also journal my entries now online. I've been trading for over 3 years and only recently have been fixing my errors and sharpening my skills. let me know what you think of my trades.


Tony Chai said...

Hi Paul,

Nice Trading Blog. Read about your trade on GRMN and what can I say, I screwed up myself at times this way too. Just don't give up, perservere. May be you could treat me a drink in Singapore when your account reach $40,000.

Tony Chai