Update 12/3/10

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This week started slow but ended up strongly helping my bullish diagonal positions.

NOV Bullish Diagonal

After NOV moved down a couple of days I sold 4 Jan 11 65 calls for 1.75. I ended up getting whipsawed a little and bought the calls back today for 2.27. Overall the position is up 226%.

FCX Bullish Diagonal

Today I made an adjustment to the FCX position. I rolled the longs calls up and out and added an additional contract. I sold the Feb 90 call for 20.93 and bought 2 May 100 calls for 16.79 each. Normally I want to do this for a credit but because I only had 1 initial contract, I had to add a debit to the trade to double the number of contracts. Eventually when I roll again I will try to lower the basis back to what I started with by getting a credit. Overall the position is up 99%.

XLE Bullish Diagonal

XLE continued its move up this week and yesterday I was able to roll the call up and add a contract for a net credit. I sold 2 Mar 58 for 8.255 and bought 3 Mar 62 for 5.22 or a 0.85 net credit. Overall profit is now 179%.

LVS Bullish Diagonal

LVS traded down sharply on Thursday after some bad news. My stop was hit and I closed the position by selling the 3 Mar 45 calls for 7.60. Final profit on the trade was 88%.

CTRP Bearish Diagonal

I opened a new bearish diagonal in CTrip.com International today. I bought 2 Mar 50 Puts and sold 2 Jan 40 puts for 7.00 net debit. Currently the position has a loss of 3%.