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So it’s been a while, but I’m back on the Stock Option Trading bandwagon and I’m playing it slow and conservative this time. I’m buying out of the money options in small allotments and trying to hone my skills before I move up into more expensive positions.

This month I’ve taken two positions:

1) Long April Calls on SBUX – Starbucks has been a winner for me in the past and they have been a strong performer, even when the economy was in the tank. The stock is currently on a substantial trend and I think it will continue. However, there’s a potential H&S; Pattern developing so if the trendline is broken I will know to get out of the position ASAP, and then watch for the retracement.

2) Long March Puts on V – Visa has tested a resistance zone on an extremely high volume day where it was abrubtly stopped. Since then it has been hovering around at the same level but now it is showing signs of weakness and a price drop looks inevitable. I have taken a small put position on this one, gambling that it will not retest the resistance zone.

That’s it for this month, we’ll see how they turn out!