Finally .. TWO losing Trades and 1 more Winner

Markets were in BEARISH mode with events in Egypt, blame / no blame enquiry commission report on 2008 Financial meltdown. No matter what, money can be made or lost in markets.

We had two Losing trades ( BIDU and RIMM ) and one more winner ( POT ) since last update on here. Details are under:

Trade 9. 2011/01/26
BIDU 105 P Jan 28
In: 0.40
Out: 0.13
Time in Trade: 2 Days
Return on trade: ( - ) 67.50 %

We stayed too long in this trade ( 2 days + ) and then got out too early. As soon as we got out at 13 Cents, this position went to 73 Cents .. classic case of GREED and FEAR. Oh well.


Trade 10. 2011/01/27
RIMM 62.5 C Jan 28
In: 0.22
Out: Expired worthless
Time in Trade: 1 Day
Return on Trade: ( - ) 100 %

Within miuntes of taking this trade, RIMM bounced up and out option was 0.43 .. 100% increase. However, we failed to cash at that time and RIMM never looked back at that level. 100% return WWINNER turned to 100% loss. What a shame but that is how Weekly options work. Got to be awake all the time.


Trade 11. 2011/01/28
POT 175 P Feb 4th
In: 1.50
Out: 1.95
Time in Trade: 41 min
Return on trade: 30 %


That is all for this week. We have so far 11 trades and 9 of those are positive.

Account at Start of weekly Options: USD 2,000.00
Account Value today: USD 2.995.02

Return on Account: 49.75 %
Smile and enjoy weekly down time.

Harry

BIDU Weekly Options .. 8th Winner

Bidu opened at days lows and rushed up but could not even get to first Pivot Resistance R1. Slide back to Pivot Point PP supported the afternoon session.

Our AM trade was as under:

Trade 8. 2011/01/25
Bidu 105 PUT Jan 29 Expiry
In: 1.00
Out: 1.36
Time in Trade: 14 min
Return on trade: 36 %


Account at Start of Weekly Options: USD 2.000.00
Account Value today: USD 3,025.02


Return on Account: 51.25 %


Due to Obama " State of the Union " tonight and FOMC meeting decision tomorrow at 2.15 PM. markets are in a jittery mode. Upbeat address by Obama will likely lead to market going up .. to let Dow kiss 12000 mark and afternoon will be another story after FOMC rate and policy news.

Stay alert and enjoy the journey ahead.

Best

Harry

BIDU Weekly Options .. 3 winners today

BIDU ROCKS. What a day!!

Right at open, BIDU dropped like a stone, crashing through PIVOT POINT and both Pivot Supports S1 and S2 and found some support under S2.

Our three trades for the day are as under:

Trade 5. on 2011/01/24
BIDU 105 CALL Jan 28 Expiry
In: 0.87
Out: 1.22
Time in Trade: 31 min
Return on trade: 40.23 %

Trade 6. on 2011/01/24
BIDU 105 CALL Jan 28 Expiry
In: 0.85
Out: 1.50
Time in Trade: 33 min
Return on trade: 76.47 %

Trade 7. on 2011/01/24
BIDU 105 PUT Jan 28 Expiry
In: 2.00
Out: 2.16
Time in Trade: 1 h 33 min
Return on trade: 8 %

Account at Start of Weekly Options: USD 2,000.00
Account Value today: USD 2,917.02


Return on Account: 45.85 %

Happy trading.


Harry

New Year .. New Strategies .. WEEKLY OPTIONS.

2011 already. TIME sure FLIES. Really. We sure are in 2011, cruising the world through the worst economic crisis ever.

There is total disconnect between the real fundamental strength of strong growth and stock market returns. Unemployment and Food Stamp rolls do not reflect or connect with the bullish sentiment in stock numbers. Thanks to POMO help from Fed, stocks all over world have attained new highs since March 2009. What a rush back towards 2007 highs.

Now that we are "" HERE " with DOW closing Friday at 11,871, NASDAQ at 2689 and S$P at 1283, it is impossible to find anyone who is long term BEARISH on the Stock market or Economy for that matter. Is it still possible to get LONG and make money?

If you are a small investor, buying HIGH at these highs ( and hold ) is suicidal in near term if the markets turn down. What to do ??

WEEKLY OPTIONS :: New development in markets is WEEKLY OPTIONS on expended CBOE stock list ... AAPL, AIG, AMZN, AXP, BIDU, BP, GLD, GS, GOOG, IBM, NFLX, PCLN, POT, RIMM, USO etc are some of the stocks at NOSE BLEED highs, that you can try capitalise with a small account size. On the flip side, these options expire in less then 8 days ( Thursday to next Friday ). Hmmmm ... 8 days and less ... scary eh. Hence, you got to be very "RIGHT" from word " GO ". If not, noone can help you. GOD BLESS.

Let us try understand why WEEKLY OPTIONS. Say you want to capitalise the moves of high roller "BIDU". To buy 100 stocks of Bidu, you need account base of atleast USD 11,000. 200 stocks will need USD 22,000, 300 will ask for USD 33,000 and for 500 stocks over USD 50 K.

Here we will try explore the moves in BIDU with Weekly Options on an account size of 2K .... yes USD 2000. Noted under are my first 4 trades in real account trading weekly options.

Trade 1. on 2011/01/18
BIDU 107 PUT Jan 22 Expiry
In: 0.34
Out: 0.50
Time in Trade: 27 Min
Return on trade: 48.54 %

Trade 2. on 2011/02/19
BIDU 107 PUT Jan 22 Expiry
In: 0.60
Out: 0.75
Time in Trade: 14 Min
Return on trade: 25 %

Trade 3. on 2011/01/20
BIDU 106 PUT Jan 22 Expiry
In: 0.85
Out: 1.66
Time in Trade: 8 Min
Return on Trade: 95.29 %

Trade 4. on 2011/01/21
BIDU 106 CALL Jan 22 Expiry
In: 0.35
Out: 0.72
Time in Trade: 8 Min
Return on trade: 105.71 %


Account at Start of Weekly Options: USD 2,000.00
Account today: USD 2,485.02

Return on Account: 24.25 %


That is all for now. Hope this makes sense.

Happy Trading.

Harry

LEH, WLT, WLL, COG, DVN, XEC, FDG, MMR and ISRG

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

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

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