Thursday, August 24, 2006

A Winning Trade on PDCO

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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

5 comments:

Emini Day Trader said...

Great blog. Nice job you've done here.

Sincerely,
Daytrader
daytrade
http://www.daytradingcourse.com

Anonymous said...

hi, i like to know more about clemen chiang ,
please email me
leewmin@singnet.com.sg
thanks

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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.

cheers.
-Paul
http://financeninja.wordpress.com

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.

Cheers,
Tony Chai