GE earnings were lower then expectations and stock dropped down nearly 13%. This is the first time since 1987 that GE has failed the markets and this brought back vivid memories of BLACK MONDAY.
With G7 meeting this weekend, we have masters in session, as worried as we all are. $VIX index inched up as Dow fell 256.56 points, Nasdaq down 61.46 and S&P down 27.72. Monday morning will likely open lower and we go from there, as that will likely fill the last Gap in Indicies.
Stay awake this week as MER and C are due to deliver ( ugly ) results for the first quarter. As heard on Fast Money Friday, market will likely spare only one from LEH or MER in the coming days. Let us see how that pares out.
We have nine, yes 9, open trades at this time. We have however shunned the shorter term trades and gone with atleast 60 to 120 days time options as markets have not been kind and wild swings are the norm.
2008 Project Mercedes
Account Value: $ 9,624.90
Account Return for 2008: 92.58 %
OPEN TRADES::
LEH, WLT, WLL, COG, DVN, XEC, FDG, MMR, ISRG
------------------------------------------------------------------------
Trades since our last update are as under:
Trade # 40 Part LEH
Put July 10 Buy: $ 0.75 Sell: $ 0.90 Lots 8
Return:: 20 %
Trade # 45 SGP
Call Aug 12.50 Buy: $ 2.90 Sell: $ 3.60 Lots 2
Return:: 24 %
Trade # 46 MRK
Call Jul 37.50 Buy: $ 3.50 Sell: $ 4.00 Lots 2
Return:: 14 %
Trade # 47 SPY
Put Apr 136 Buy: $ 2.61 Sell: $ 2.24 Lots 2
Return:: ( = ) 14 %
Trade # 48 LNG
Call Jun 20 Buy: $ 2.20 Sell: $ 2.40 Lots 2
Return:: 9 %
Trade # 49 SPY
Put Jun 138 Buy: $ 6.35 Sell: $ 7.05 Lots 1
Return:: 11 %
Trade # 50 QID
Call Jul 46 Buy: $ 5.20 Sell: $ 5.40 Lots 1
Return:: 4 %
Trade # 51 DXD
Call Jul 53 Buy: $ 5.10 Sell: $ 5.50 Lots 1
Return:: 8 %
Trade # 57 AXP
Call Apr 42.50 Buy: $ 2.30 Sell: $ 2.60 Lots 2
Return:: 13 %
Trade # 59 APA
Put 120 May 120 Buy: $ 3.50 Sell: $ 4.20 Lots 1
Return:: 20 %
Markets are turbulent ahead. Play safe.
Harry
Saturday, April 12, 2008
Tuesday, April 1, 2008
LEH, LNG, MRK, SGP, SPY, WLT, WLL
Stock Options is a great medium to enhamce and improve your capital base in tough financial environment that we are passing through. Noone exactly knows or understands the Derivative Stockpiles that world is piled on through the numerous world wide Bubbles.
George Soros, one of the greatest speculator, who made 1 Billion dollars overnight in his famous GBP trade has been so worried that he has come out with an e book on this current crisis, as he cannot wait for the real book to be published sometime in May 2008. That sure is something to think about.
Our 2008 Project Mercedes has been fruitful so far. If you would like to drive a brand new Mercedes Benz without spending any of your own money, feel free to e mail us and we will send you a complete article on how to do just that, with the help of stock options.
2008 Project Mercedes
Account Value: $ 9158.90
Account Return for 2008: 83.18 %
Open trades as of date: LEH, LNG, MRK, SGP, SPY, WLT, WLL
------------------------------------------------------------------------
Meanwhile, closed trades since our last trades update are as under:
Trade # 43 SPY
Call Jun 132 Buy: $ 6.95 Sell: $ 805 Lots 2
Return:: 16 %
Trade # 41 APA
Put May 120 Buy: $ 7.20 Sell: $ 8.10 Lots 2
Return:: 13 %
Trade # 39 WMT
Put Jun 55 Buy: $ 3.10 Sell: $ 3.50 Lots 3
Return:: 13 %
Trade # 38 NFLX
Put Jun 40 Buy: $ 5.80 Sell: $ 6.40 Lots 2
Return:: 10 %
Trade # 37 INSP
Put 11 Buy: $ 1.20 Sell: $ 1.15 Lots 2
Return:: ( - ) 4 %
Trade # 36 AAPL
Put Apr 140 Buy: $ 5.65 Sell: $ 6.00 Lots 2
Return:: 6 %
Trade # 35 AAPL
Put Apr 135 Buy: $ 3.60 Sell: $ 4.00 Lots 2
Return:: 11 %
Trade # 34 ALO
Put Jun 30 Buy: $ 4.00 Sell: $ 3.80 Lots 2
Return:: ( - ) 5 %
Trade # 33 PCP
Call Apr 100 Buy: $ 4.30 Sell: $ 4.55 Lots 2
Return:: 6 %
Trade # 32 GRMN
Call Apr 60 Buy: $ 3.30 Sell: $ 3.60 Lots 2
Return:: 9 %
Trade # 31 BG
Call Apr 90 Buy: $ 7.30 Sell: $ 8.20 Lots 1
Return:: 12 %
Trade # 30 AAPL
Call Apr 135 Buy: $ 4.45 Sell: $ 7.60 Lots 2
Return:: 71 %
Trade # 29 AAPL
Call Apr 130 Buy: $ 6.60 Sell: $ 10.80 Lots 2
Return:: 64 %
Trade # 28 FXE
Put Apr 157 Buy: $ 2.70 Sell: $ 3.00 Lots 2
Return:: 11 %
Trade # 19 SPY
Call Mar 135 Buy: $ 1.83 Sell: 1.24 Lots 14
Return:: ( - ) 32.25 %
Trade # 12 $OEX
Call Mar 645 Buy: $ 2.25 Sell Zero Lots 12
Return:: NIL... Expired Worthless
Markets : Volatility is down and good upswings all over. That spells CAUTION as we are getting closer to first target resistances.
We will return with further Market updates. Stay awake as it will surely get exciting with FED testimony coming two days and NON FARM numbers coming up this Friday.
Happy trading.
Harry
George Soros, one of the greatest speculator, who made 1 Billion dollars overnight in his famous GBP trade has been so worried that he has come out with an e book on this current crisis, as he cannot wait for the real book to be published sometime in May 2008. That sure is something to think about.
Our 2008 Project Mercedes has been fruitful so far. If you would like to drive a brand new Mercedes Benz without spending any of your own money, feel free to e mail us and we will send you a complete article on how to do just that, with the help of stock options.
2008 Project Mercedes
Account Value: $ 9158.90
Account Return for 2008: 83.18 %
Open trades as of date: LEH, LNG, MRK, SGP, SPY, WLT, WLL
------------------------------------------------------------------------
Meanwhile, closed trades since our last trades update are as under:
Trade # 43 SPY
Call Jun 132 Buy: $ 6.95 Sell: $ 805 Lots 2
Return:: 16 %
Trade # 41 APA
Put May 120 Buy: $ 7.20 Sell: $ 8.10 Lots 2
Return:: 13 %
Trade # 39 WMT
Put Jun 55 Buy: $ 3.10 Sell: $ 3.50 Lots 3
Return:: 13 %
Trade # 38 NFLX
Put Jun 40 Buy: $ 5.80 Sell: $ 6.40 Lots 2
Return:: 10 %
Trade # 37 INSP
Put 11 Buy: $ 1.20 Sell: $ 1.15 Lots 2
Return:: ( - ) 4 %
Trade # 36 AAPL
Put Apr 140 Buy: $ 5.65 Sell: $ 6.00 Lots 2
Return:: 6 %
Trade # 35 AAPL
Put Apr 135 Buy: $ 3.60 Sell: $ 4.00 Lots 2
Return:: 11 %
Trade # 34 ALO
Put Jun 30 Buy: $ 4.00 Sell: $ 3.80 Lots 2
Return:: ( - ) 5 %
Trade # 33 PCP
Call Apr 100 Buy: $ 4.30 Sell: $ 4.55 Lots 2
Return:: 6 %
Trade # 32 GRMN
Call Apr 60 Buy: $ 3.30 Sell: $ 3.60 Lots 2
Return:: 9 %
Trade # 31 BG
Call Apr 90 Buy: $ 7.30 Sell: $ 8.20 Lots 1
Return:: 12 %
Trade # 30 AAPL
Call Apr 135 Buy: $ 4.45 Sell: $ 7.60 Lots 2
Return:: 71 %
Trade # 29 AAPL
Call Apr 130 Buy: $ 6.60 Sell: $ 10.80 Lots 2
Return:: 64 %
Trade # 28 FXE
Put Apr 157 Buy: $ 2.70 Sell: $ 3.00 Lots 2
Return:: 11 %
Trade # 19 SPY
Call Mar 135 Buy: $ 1.83 Sell: 1.24 Lots 14
Return:: ( - ) 32.25 %
Trade # 12 $OEX
Call Mar 645 Buy: $ 2.25 Sell Zero Lots 12
Return:: NIL... Expired Worthless
Markets : Volatility is down and good upswings all over. That spells CAUTION as we are getting closer to first target resistances.
We will return with further Market updates. Stay awake as it will surely get exciting with FED testimony coming two days and NON FARM numbers coming up this Friday.
Happy trading.
Harry
Thursday, March 27, 2008
Stock Options account from $5,000 to $22,000 and $ 40,000 Margin Call
Wow... what a week so far. Markets are relatively stable but our account exploded. Read on pls.
Monday morning we closed our positions carried over from last week and opened some new trades later on during the day.
And then starts some fun time with account balances exploding upside and Margin calls. Due some computer glitch, seems we had some positions carried forward that should not have.
Result was .. our account balances jump to over $22,000 ( how nice ) on Monday night followed by a huge Margin Call Tuesday at 11 AM to deposit $ 25,000 by 2 PM same day or else all positions will be liquidated.
Within minutes of that margin call, we closed all open position at that time, about 6 of them, at the Market, without even glancing at ongoing prices. With all positions having closed at Market before the due time for margin call, margin requirements exploded ever higher.
Another Margin call came though following day for $40,000 and account was locked out automatically. We could neither trade nor figure out what was happening, as the account was referred to RISK Management at our Broker and they were looking into it.
This morning, however, everything opened back normally.
Due to all these haphhazard trades, that we had to close at moments Margin Call notice, account balances have naturally suffered. In addition, two Index trades have closed almost worth less at expiry and we will attribute that to our negligence, over confidence ( leaving open trade while away on holiday ) as well as BEAR STEARN domino affect on the markets.
We are sorting out all positions and will report final situation as of month end. Inspite of all this, we still have over 75% returns for less then three months, when all Indices and markets are seriously negative.
Open trades at this time are:: LEH, APA, WLT.
Happy tradin.
Harry
Monday morning we closed our positions carried over from last week and opened some new trades later on during the day.
And then starts some fun time with account balances exploding upside and Margin calls. Due some computer glitch, seems we had some positions carried forward that should not have.
Result was .. our account balances jump to over $22,000 ( how nice ) on Monday night followed by a huge Margin Call Tuesday at 11 AM to deposit $ 25,000 by 2 PM same day or else all positions will be liquidated.
Within minutes of that margin call, we closed all open position at that time, about 6 of them, at the Market, without even glancing at ongoing prices. With all positions having closed at Market before the due time for margin call, margin requirements exploded ever higher.
Another Margin call came though following day for $40,000 and account was locked out automatically. We could neither trade nor figure out what was happening, as the account was referred to RISK Management at our Broker and they were looking into it.
This morning, however, everything opened back normally.
Due to all these haphhazard trades, that we had to close at moments Margin Call notice, account balances have naturally suffered. In addition, two Index trades have closed almost worth less at expiry and we will attribute that to our negligence, over confidence ( leaving open trade while away on holiday ) as well as BEAR STEARN domino affect on the markets.
We are sorting out all positions and will report final situation as of month end. Inspite of all this, we still have over 75% returns for less then three months, when all Indices and markets are seriously negative.
Open trades at this time are:: LEH, APA, WLT.
Happy tradin.
Harry
Sunday, March 23, 2008
AAPL, BG, PCP and our NEW FORMAT Short, Long Stock List
Bear Stearns and continuing Subprime worries have cast many or most investors mind set into serious BEAR mode. Naturally, majority of us will stay away right now worrying about Financial meltdown.
Wall Street always climbs on wall of worries. May be this is the time we should be prepared to buy, when everyone else is ready to sell or has already sold. Most indexes have tested January lows and likely Double Bottomed.
If you notice, list of our posted SHORT candidates is small compared to our LONG candidates. No one can ever predict what will really happen, but if you decide to make some long positions as part of your trading strategy, as we are, give your self enough time for market to swing up, if at all.
However, dont forget we are in BEAR Market and any serious bad or negative news can easily turn things anytime without notice.
For every long trade, try balance with a short trade and place your stop losses intelligently. Preserve your capital, so that you are around for next swing. Survival first is the key in volatile markets.
Here are short listed Liquid Optionable candidates for SHORTS and LONGS::
OUR OPEN TRADES: AAPL, BG, PCP
OUR CLOSED TRADES: $OEX(-), SPY(-), FXE(+), GRMN(+)
OUR SHORT CANDIDATES: ALO, CLHB, HCBK, NFLX, INSP, WMT.
OUR LONG CANDIDATES: NOK, OMRI, EEM, FRG, ATHR, ATPG, GLBL, GOOG, IBKR, ERIC, UNFI, AU, BDC, BGP, EK, NCX, OEH, URS, BG, PCP.
Good trading.
Harry
Wall Street always climbs on wall of worries. May be this is the time we should be prepared to buy, when everyone else is ready to sell or has already sold. Most indexes have tested January lows and likely Double Bottomed.
If you notice, list of our posted SHORT candidates is small compared to our LONG candidates. No one can ever predict what will really happen, but if you decide to make some long positions as part of your trading strategy, as we are, give your self enough time for market to swing up, if at all.
However, dont forget we are in BEAR Market and any serious bad or negative news can easily turn things anytime without notice.
For every long trade, try balance with a short trade and place your stop losses intelligently. Preserve your capital, so that you are around for next swing. Survival first is the key in volatile markets.
Here are short listed Liquid Optionable candidates for SHORTS and LONGS::
OUR OPEN TRADES: AAPL, BG, PCP
OUR CLOSED TRADES: $OEX(-), SPY(-), FXE(+), GRMN(+)
OUR SHORT CANDIDATES: ALO, CLHB, HCBK, NFLX, INSP, WMT.
OUR LONG CANDIDATES: NOK, OMRI, EEM, FRG, ATHR, ATPG, GLBL, GOOG, IBKR, ERIC, UNFI, AU, BDC, BGP, EK, NCX, OEH, URS, BG, PCP.
Good trading.
Harry
Friday, March 21, 2008
NEW FORMAT with Stock lists, AAPL, BG, PCP
Holidays are great time to relax, re-charge, re-view and re-format your strategies. As such, after the well deserved break, we have a NEW format for our Blog effective hereon. We hope that you come back again and again, as often you like and review the postings.
We will be posting our current open trades for this account. In addition, we will daily ( or as often as we can ) post stocks that we personally consider are good candidates in the market for the swing trades, both long and short.
We will however not post any details of exact " CALLS " or " PUTS " that we may or may not take in the market from this list. In other words, the long / short list will be our short listed stock list that we are looking at that particular time for swing trades.
It will be upto to the reader to secure any positions in the market from the list, keeping in mind RISK and REWARD situation, based on their own account size and risk tolerance. Due Deligence please.
Markets are always changing and stocks posted here may or may not turn out to be good candidates. Also depending on any news, including guidance, earnings reports etc, stocks may and will reverse. Therefore, please educate yourself enough in the markets before you trade.
Be aware that over 90% traders lose money in the markets. And therefore, please, only use money that you can afford to lose. Any trade that you take in the markets could turn on a dime. So watch your trades deligently and set your profit and loss limits and monitor them closely.
Trade performance hereon will be updated every month end, as it takes away too much time to update trade by trade and is of no benefit to readers per say.
OUR OPEN TRADES: AAPL, BG, PCP
OUR CLOSED TRADES: $OEX(-), SPY(-), FXE(+), GRMN(+)
OUR SHORT CANDIDATES: ALO, CLHB, DCOM, HCBK, KEX, LNN, NFLX, ONB, WWE, XIDE, AXYS, ELRC, INSP, VLNC, KEX, OFG, WMT,
OUR LONG CANDIDATES: BIP, BKR, GCH, IXC, KB, NOK, OMRI, UTG, EEM, EWI, EZA, FRG, IHF, KOL, USM, ATHR, ATPG, BPFH, CLMT, GLBL, GOOG, IBKR, SINT, ERIC, UNFI, AU, BDC, BGP, BNS, BT, EK, NCX, OEH, TI, URS, BG, PCP,
Note: Some Stocks may not be optionable from above list.
Any suggestions will be very welcome.
Great Easter Holiday for everyone.
Harry
We will be posting our current open trades for this account. In addition, we will daily ( or as often as we can ) post stocks that we personally consider are good candidates in the market for the swing trades, both long and short.
We will however not post any details of exact " CALLS " or " PUTS " that we may or may not take in the market from this list. In other words, the long / short list will be our short listed stock list that we are looking at that particular time for swing trades.
It will be upto to the reader to secure any positions in the market from the list, keeping in mind RISK and REWARD situation, based on their own account size and risk tolerance. Due Deligence please.
Markets are always changing and stocks posted here may or may not turn out to be good candidates. Also depending on any news, including guidance, earnings reports etc, stocks may and will reverse. Therefore, please educate yourself enough in the markets before you trade.
Be aware that over 90% traders lose money in the markets. And therefore, please, only use money that you can afford to lose. Any trade that you take in the markets could turn on a dime. So watch your trades deligently and set your profit and loss limits and monitor them closely.
Trade performance hereon will be updated every month end, as it takes away too much time to update trade by trade and is of no benefit to readers per say.
OUR OPEN TRADES: AAPL, BG, PCP
OUR CLOSED TRADES: $OEX(-), SPY(-), FXE(+), GRMN(+)
OUR SHORT CANDIDATES: ALO, CLHB, DCOM, HCBK, KEX, LNN, NFLX, ONB, WWE, XIDE, AXYS, ELRC, INSP, VLNC, KEX, OFG, WMT,
OUR LONG CANDIDATES: BIP, BKR, GCH, IXC, KB, NOK, OMRI, UTG, EEM, EWI, EZA, FRG, IHF, KOL, USM, ATHR, ATPG, BPFH, CLMT, GLBL, GOOG, IBKR, SINT, ERIC, UNFI, AU, BDC, BGP, BNS, BT, EK, NCX, OEH, TI, URS, BG, PCP,
Note: Some Stocks may not be optionable from above list.
Any suggestions will be very welcome.
Great Easter Holiday for everyone.
Harry
Tuesday, March 18, 2008
Holiday ends .. FEAR GREED, AAPL, $OEX, SPY and FXE
Dominican Republic Island holiday was a great breakaway but FEAR set in markets with BEAR (Stearn) EXPLOSION news every where and I will not deny CNN news was one of the pastimes besides sun and drinks.
Looking back, leaving open trades while on holidays was not a great idea after all. We still have 2 open trades and time line is so very thin, mere 3 days to expiry.
Other two open positions in AAPL with more then enough time on our side have already been closed this morning with nearly 50% profits and details will be posted shortly.
Fear set in since last Tuesday has eroded even the normal market movements and affected our values. Tuesday with 400 + Dow movement was a perfect day to get out of our two open Index positions, but markets since have swung back with out filling us at "breakeven limits" due to BEAR STEARN news and this will likely hurt bad.
Markets will slow down for FED interest rate news at 2 15 this afternoon and we will monitor our 2 sick positions with " bated breath and hanging tongue ", an expression usually used and saved by one of our grown up friend for big boys club when we are out partying.
Pre FED huge rally this morning is in anticipation of atleast 75 basis cut (or even more, as some have predicted 100 to 200 basis points) looking at the precarious credit and liquidity issues in the markets. Market are in complete turmoil and Derivative meltdown is the focus. Derivative markets have grown to over 45 Trillion with " T " and even a 5 % default in these markets will be a write down of 2.5 Trillion with " T ".
And now, just think about this for a second ... if for any or what ever reasons, there is just 75 basis cut or less, market mavens feel this is not enough and this could easily erase the rally of today, $ VIX spikes back up. Just a thought on " FEAR and GREED " emotions so very easily turned either way.
Have a nice day and profitable one at that.
Harry
--------------------------------
4.05 PM:
Two trades we closed in AAPL today are as under:
2008 Project M .. TRADE # 26: AAPL
Mar 06, 2008 AAPL Buy Apr 135 Call $ 3.10 .. 2 Contracts
Mar 18, 2008 AAPL Sell Apr 135 Call $ 4.55 .. 2 Contracts
Time: 12 Days
Return: 46.77 % or $ 291.00
--------------------------------
2008 Project M .. TRADE # 27: AAPL
Mar 06, 2008 AAPL Buy Apr 130 Call $ 5.16 .. 2 Contracts
Mar 06, 2008 AAPL Sell Apr 130 Call $ 6.90 .. 2 Contracts
Time: 12 Days
Return: 21.62 % or $ 520.00
Account Value: $ 11,020.90
Looking back, leaving open trades while on holidays was not a great idea after all. We still have 2 open trades and time line is so very thin, mere 3 days to expiry.
Other two open positions in AAPL with more then enough time on our side have already been closed this morning with nearly 50% profits and details will be posted shortly.
Fear set in since last Tuesday has eroded even the normal market movements and affected our values. Tuesday with 400 + Dow movement was a perfect day to get out of our two open Index positions, but markets since have swung back with out filling us at "breakeven limits" due to BEAR STEARN news and this will likely hurt bad.
Markets will slow down for FED interest rate news at 2 15 this afternoon and we will monitor our 2 sick positions with " bated breath and hanging tongue ", an expression usually used and saved by one of our grown up friend for big boys club when we are out partying.
Pre FED huge rally this morning is in anticipation of atleast 75 basis cut (or even more, as some have predicted 100 to 200 basis points) looking at the precarious credit and liquidity issues in the markets. Market are in complete turmoil and Derivative meltdown is the focus. Derivative markets have grown to over 45 Trillion with " T " and even a 5 % default in these markets will be a write down of 2.5 Trillion with " T ".
And now, just think about this for a second ... if for any or what ever reasons, there is just 75 basis cut or less, market mavens feel this is not enough and this could easily erase the rally of today, $ VIX spikes back up. Just a thought on " FEAR and GREED " emotions so very easily turned either way.
Have a nice day and profitable one at that.
Harry
--------------------------------
4.05 PM:
Two trades we closed in AAPL today are as under:
2008 Project M .. TRADE # 26: AAPL
Mar 06, 2008 AAPL Buy Apr 135 Call $ 3.10 .. 2 Contracts
Mar 18, 2008 AAPL Sell Apr 135 Call $ 4.55 .. 2 Contracts
Time: 12 Days
Return: 46.77 % or $ 291.00
--------------------------------
2008 Project M .. TRADE # 27: AAPL
Mar 06, 2008 AAPL Buy Apr 130 Call $ 5.16 .. 2 Contracts
Mar 06, 2008 AAPL Sell Apr 130 Call $ 6.90 .. 2 Contracts
Time: 12 Days
Return: 21.62 % or $ 520.00
Account Value: $ 11,020.90
Friday, March 7, 2008
HOLIDAY TIME ... Away for March Break
Off to Caribean Island Peurto Plata for March break Holiday, away from 25 cms snow in Toronto this weekend. I hope flights are able to take off and take me away, although Airport delays are more then likely.
Another trade in AAPL and this time a Put option has been executed for 20% profit in less then 2 hours.
2008 Project M .. TRADE # 25: AAPL
Mar 06, 2008 AAPL Buy Mar 125 Put $ 3.70 .. 1 Contract
Mar 06, 2008 AAPL Sell Mar 125 Put $ 4.50 .. 1 Contract
Time: 2 Hours
Return: 21.62 % or $ 80.00
Account Value: $ 10,209.90
Enjoy March Break Holidays and Play safe.
Harry
Another trade in AAPL and this time a Put option has been executed for 20% profit in less then 2 hours.
2008 Project M .. TRADE # 25: AAPL
Mar 06, 2008 AAPL Buy Mar 125 Put $ 3.70 .. 1 Contract
Mar 06, 2008 AAPL Sell Mar 125 Put $ 4.50 .. 1 Contract
Time: 2 Hours
Return: 21.62 % or $ 80.00
Account Value: $ 10,209.90
Enjoy March Break Holidays and Play safe.
Harry
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