Closed Off Trade On InvestTools (SWIM) CALL Options, Made Nice Profit

by Das Brain

I bought InvesTools (SWIM) CALL contracts with a strike price of $12.50 expiring January 2008, option symbol UKHAV back in mid July and since then all financial stocks in the U.S markets took a big blow to the head including InvesTools.  The stock price dropped from about $12 down to $9.50.  I average down my trade, as based on my research InvesTools is a solid company. 

InvesTools (SWIM) has reported strong customer acquisition numbers and increased their revenue by 86% according to their last financial report. The company has an investor education division, a discount brokerage division called that has a great trading platform and plus they own which is an amazing advance stock charting platform. My account actually uses real-time charting, it is a powerful technical analysis tool and I love it My opinion is that the stock was unfairly punished back in July, InvesTools had nothing to do with sub-prime mortgages.

Below is the chart and details of my trade:

InvestTools SWIM stock chart

Date   Symbol    Buy/Sell #Contracts Price    Total    Commiss

July 16 UKHAV     BUY           7         1.25    $875       32.24

July 17 UKHAV     BUY           3         0.95    $285       25.24

July 26 UKHAV     BUY           3         0.80    $240       25.24

Aug 03 UKHAV     SELL          7         1.80    $1260     32.24

Aug 06 UKHAV     SELL          3         1.85     $555      25.24

Aug 07 UKHAV     SELL          3         2.35    $705       25.24

Profit = $2520 – $1400 - $165.44 = $954.56 USD 

Not bad for 3 weeks wait.

As you can see InvesTools (SWIM) stock price has shot up to a little over $13, however the stock price has hit a high of $14.  From my chart technical analysis it looks a bit over extended and it will pull back to around $12.50.  When it hits that level, I will re-consider buying some January CALL contracts on it again.

Please read my disclaimer.

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