Sold UBS

After I bought UBS (NYSE: UBS) on 10 March at USD 28.91 the price rose to a high of USD 31.45 on 12 March, creating an activation price of USD 28.30 for my 10% trailing stop. This was triggered today at 11:21 EST and my stocks got sold at 11:22 EST at USD 28.17, with a loss of 2.6% in 4 days.

Bought UBS

My order to buy UBS at USD 28.91 got executed at 09:41:45

I place a trailing stop at 10%.

UBS long position liquidated

I found out only now that Ameritrade used the short sale of UBS I made on 19 February to liquidate my long position for the same quantity. This means that the UBS shares I bought on 16 June 2007 at USD 61.69 were effectively sold on 19 February at USD 33.6901, with a loss of 45.4 % in 248 days.

The limit of USD 28.91, at which I had intended to buy to cover my short position, was reached on three occasions today, at 14:22, 14:24 and 14:39-14:40 EST. As I was out when the email of Ameritrade advising me of the inability to execute my order to buy to cover arrived at 13:58 EST I was unable to buy UBS back at 28.91, which would have had the same monetary effect as holding the long position and carrying out the short sale and purchase to cover as I had intended.

I have now placed a limit order to buy UBS at USD 28.91, roughly the equivalent of CHF 30.

UBS continues to fall

The price of UBS approached my limit to buy to cover yesterday. The low for the day was USD 29.25; my limit is USD 28.91.

The German-language newspaper CASHdaily had an article saying that JP MOrgan estimates that UBS will have to write off another CHF 18.5 billion of bad debts, which will make a second cash infusion necessary. Another possibility would be to split UBS up and sell some parts, according to Andreas Venditti, analyst of Zürcher Kantonalbank.

UBS: changing limit for buy order to cover

To adjust for the drop in the exchange rate for USD I increase the limit order to buy UBS to USD 28.91, this being today's equivalent of CHF 30.00

sold UBS short

Shortly before the open on Nasdaq, UBS traded at CHF 36.68 (USD 33.5225) on SWX. On Nasdaq, it traded as high as USD 33.68 before the open, opened at USD 33.56, and my order to sell short got executed at 33.6901

I have now placed a limit order to buy to cover at USD 27.23 and am keeping my fingers crossed that all will go well.

UBS: thinking about short-selling

I am thinking about short-selling shares of UBS (Nasdaq:UBS), something I should have done much earlier. I was reminded of this trading strategy when I read about it in today's CASHdaily, a German-language publication. The article mentions these interesting things:

– Short sales sent the stock price down to CHF 35 (USD 31.74) on Friday.

– When Credit Suisse had a crisis in 2002/2003, the stock fell below a price/book ratio of 1. With UBS, a price/book ratio of 1 would correspond to a fair value of about CHF 30.

– The "toxic assets" (overvalued mortgaged properties) on the books still amount to CHF 90 billion. Analysts estimate the need for additional write-offs at CHF 20 billion.

– Agressive hedge fund managers could drive the price of UBS below CHF 30. Recommendation: place a buy order at CHF 30.

At the moment, UBS is trading on SWX at CHF 35.30, which was Friday's closing price.

I thought I would watch UBS at the open on Nasdaq today and and perhaps make a short sale with a limit of USD 32.68, which was the close on Nasdaq on Friday, then try to buy to cover at maximum 27.23, ie slightly more than the equivalent of CHF 30. However, I just realised that the market is closed today because of a pulblic holiday (President's day) and I shall have to wait and see what tommorrow brings.

Analysing UBS

Looking at UBS in the longer term I see on the one-year chart that the price bounced off the trendline on 27 June. On the Swiss market, it opened today below Friday's close and may want to test the resistance line once more before hopefully taking off for the long term. Stochastic looks favourable.

Sold call option UBS

There are two reasons why I bought UBS on NYSE yesterday, not on the Swiss market:

1. Commissions and fees are lower
2. Options trade at better prices

Today, I sell the call option UBSGM at USD 0.85 per share, July/65. If it does not get exercised – and I am speculating that it won’t – this will reduce my cost per share.

Bought UBS

I buy UBS, this time on NYSE, at USD 61.49

Sold UBS

I sell my shares of UBS on Virt-x at CHF 78.45. Net profit 4.1% after 216 days.

UBS pays dividend

UBS pays a dividend of CHF 2.20 per share.

Bought UBS

On the Swiss market Virt-x, I buy UBS at CHF 74.75

UBS being a major Swiss bank, reporting record profits every year, I hope to do well with this stock.