Wednesday, August 29, 2007

FREE Option Trading CD

Dear Fellow Option Trader :

Happened to find the following link where you can claim a FREE copy of Options 101 from Stock Options Guru - Bernie Schaeffers.

Options 101 CD

Claim it while it's still available!!

Yours Truly,

Tony Chai

Friday, August 24, 2007

A Trade on Blue Coat Systems Inc (BCSI)

Dear fellow stock options traders :

Have been observing Blue Coat Systems Inc (BCSI) development for the past 2 years.

This company provides WAN optimization hardware appliances and software for controlling and securing Web-based communications in the secure Internet gateway and WAN application delivery markets worldwide.

Between Nov 2005 to Feb 2006, BCSI has dropped from a high of $51.00 down to about $23.00 when the company guided EPS and revenue lower due to substantial slowdown in pipeline during that period.

Situation has turn around for BCSI since the beginning of 2007 as the company has regained leadership in the WAN optimization market. Confidence was restored as substantial insider buying were observed between Feb to Mar 2007.

I've traded a call back in end May 2007 for BCSI Q4 earnings but it didn't move much as it was met with Shanghai index drop of 6.3% earlier in the day.

This time, I've observed the momentum of BCSI share price going strong towards its earnings announcement date on 22 Aug 2007. I've also checked that a few analysts have upgraded the stock based on growing demand within the wide area data services market.

Thus, I paper traded a Sep 60 Call at $440.00 per contract on 21 Aug 2007 before market close.

On 22 Aug 2007, BCSI didn't disappoint and reported Q1 earnings of $0.43 per share, $0.08 better than the Reuters Estimates consensus of $0.35. Revenues rose 71.4% year/year to $62.4 mln vs the $58.8 mln consensus. BCSI also issued upside guidance for Q2, expecting EPS of $0.43-0.50 vs. $0.37 consensus; expecting Q2 revs of $67-70 mln vs. $61.65 mln consensus.

The earnings report resulted BCSI to gap up +$8.00 to $68.00 on 22 Aug 2007. The share went up further 9 points to close at $77.31.

I sold the Sep 60 Call at $960.00 around 9.40am EST for a profit around $490.00.

Related Trade in my Stock Options Trading Blog

A Blue Coat Systems Inc. (BCSI) Q4 Earnings

A Blue Coat Systems Inc. (BCSI) Q3 Earnings

If you've managed to find out about the Live Freely! Seminar from my stock options trading blog and subsequently sign up for it, I hope you could do me a kind favour and mention Mr Tony Chai from Batch 14 as the referrer. Thank you for your kindness.

Wishing you Profitable in your Options Trading too.

Yours Sincerely,

Tony Chai