2008 Project MERCEDES ... TRADE # 7, 8 Closed

Markets spiked lower on open and then rallied up big time off those lows, eventually closing in between the highs and lows. $SPX closed right under Resistance line ( March and August lows ) and that clearly points to Bearish undertones in market internals. Rally from last Tuesday bottom is on reducing volumes and $VIX is perched right above the top of the wedge line ( August and November highs ). It could spike higher on adverse NON FARM payroll numbers tomorrow morning at 8 30 AM EST.

We have closed our IACI open trade # 7. In addition we opened and closed our trade # 8 in RIMM as detailed hereunder:

2008 Project MERCEDES .. TRADE # 7: IACI

Jan 29, 2008 09:31:07 IACI Buy Feb 25 Call $ 1.50 .. 2 Contracts
Jan 31, 2008 14:47:47 IACI Sell Feb 25 Call $ 1.60 .. 2 Contracts

Time: 2 Days
Return: 6.67 % or $20.00
( barely enough to cover the commissions but positive none the less )


2008 Project MERCEDES .. TRADE # 8: RIMM

Jan 31, 2008 11:00:27 RIMM Buy Mar 100 Call $ 4.75 .. 2 Contracts
Jan 31, 2008 15:48:12 RIMM Sell Mar 100 Call $ 5.85 .. 2 Contracts

Time: 4 Hrs 48 Minutes
Return: 23.16 % or $220.00


Account Value: $ 6564.00

Non Farm Payroll number every month is "forex" market mover and sets the tone for coming month currency markets and absolutely impacts the stock markets as well. Fed would have loved to see these numbers before the 50 basis cut yesterday.

We are flat in markets ( no open positions ) before the NFP numbers.

Enjoy the ride along.

Harry

2008 Project MERCEDES ... TRADE # 5, 6 Closed

Fed delivered what market wanted... 50 basis cut and markets yawned after a spike up. Infact markets closed down and blood red all over. This is really scary either way.

What it looks like is either a fake out and markets will rally tomorrow on for few days or rally is already done as $SPX and many other indices KISS touched the resistance and are ready to roll all over again. We will sure find that out pretty soon.

Very very tough to trade markets like they are lately. We have however, closed and cashed, our Rimm trades # 5 and 6.

2008 Project MERCEDES .. TRADE # 5: RIMM

Jan 25, 2008 10:46:36 RIMM Buy Feb 100 Call $ 2.40 .. 8 Contracts
Jan 30, 2008 15:59:51 RIMM Sell Feb 100 Call $ 2.91 .. 8 Contracts

Time: 6 Days
Return: 21.12 % or $408.00

2008 Project MERCEDES .. TRADE # 6: RIMM

Jan 25, 2008 15:39:25 RIMM Buy Mar 100 Call $ 6.20 .. 2 Contracts
Jan 30, 2008 15:59:51 RIMM Sell Mar 100 Call $ 6.90 .. 2 Contracts

Time: 6 Days
Return: 11.29 % or $140.00


Account Value: $ 6324.00

We have one position IACI open .. and let us refocus our energies on new market parameters due to unprecedented 125 basis cut in rates and that too in such a short time span of less then 10 days.

This additional cut of 50 basis today says the FED knows something that we are not yet privy to. And may be that is why market cud not sustain the after cut run up.

Let us stay awake and watch closely ... with ears and eyes wide open.

Good trading.


Harry

2008 Project MERCEDES ... TRADE # 5, 6, 7 Open

We have 3 open trades for our 2008 Project Mercedes .. 2 opened Friday in our currently favourite security RIMM and one this morning in IACI.

Markets are rallying after the FED emergency 75 basis cut last Tuesday and also awaiting further 50 basis cut tomorrow. FOMC meeting announcement tomorrow with further guidance on FED understanding of markets will move the markets for next couple of days.

FED WATCH is on and we stand by watching our open trades.

Great day for all.

Harry

2008 Project MERCEDES ... TRADE # 3 and 4 Closed

We closed our two trades of 2008 Project Mercedes in the rally and this rally has all the tell tale signs of a BEAR MARKET RALLY. It seems bears have really taken control of the markets.

2008 Project MERCEDES .. TRADE # 3: RIMM

Jan 15, 2008 09:40:22 RIMM Buy Feb 95 Call $ 7.75 .. 8 Contracts
Jan 24, 2008 15:59:51 RIMM Sell Feb 95 Call $ 8.30 .. 8 Contracts

Time: 9 Days
Return: 5.47 % or $206.00

2008 Project MERCEDES .. TRADE # 4: MCD

Jan 16, 2008 15:56:12 MCD Buy Mar 50 Call $ 7.75 .. 4 Contracts
Jan 24, 2008 10:13:12 MCD Sell Mar 50 Call Put $ 8.30 .. 4 Contracts

Time: 8 Days
Return: 15.90 % or $210.00


Account Value: $ 5776.00

We are now flat in the market .. no open positions.

All eyes set on Fed meeting and we will look for other opportunites.

Have a great evening please.


Harry

Again ... MARKET REVERSAL or is it???

Fed emergency rate cut of 75 basis points yesterday and world wide tumble of markets Monday and Tuesday has played on the nerves of everyone ( and their neighbours ) involved in the markets. What a REAL LIFE ROLLER COASTER ride.

$VIX .. spiked to extreme levels even after slashing of 75 basis rates by the fed and hopefully calm waters for few days as now all eyes are focused on FED meeting Jan 29 30.

Our trades, inspite of all the storms and turmoil, are already positive or getting there.

Stay tuned please.

Regards

Harry

2008 Project MERCEDES ... TRADE # 4 Open

Our fourth trade of 2008 Project Mercedes was triggered January 16th and underlying security is MCD.

Markets continued rolling down and nuthin could stop the carnage. Markets are seriously OVERSOLD and everyone is waiting for the pain to stop.

Let us see how the coming week works out and we will seriously watch our trades. Inspite of freefall in overall markets, our underlying stocks RIMM and MCD seem supported by major MVA,s.

Monday is a market holiday and that should help calm the nerves after the option expiry week and as well as refocus on Fed Jan 29-30 meeting on interest rates.

Happy trading.

Harry

MARKET REVERSAL or is it???

Market has dropped a lot yesterday and started lower today ... but looks like a reversal day.

Or is it??

Well ... it sure looks like a reversal day in the making. Our trade stays open and we will not take any new trades for now.

Good day and remember this is OPTION EXPIRY week.

Harry

2008 Project MERCEDES ... TRADE # 3 Open

Good Morning. Markets are down .. opened down and staying down so far. Afternoon may ( or may not ) see change of sentiment and little bit of recovery. As always, we never know what will happen and that is why we have to be focused on RISK and MONEY Management of each and every position. Always use stops and limits .. that is what really keeps us trading.

We have opened our third trade of 2008 Project Mercedes .. and again it happens to be RIMM.

Let us watch our trade.

Harry

2008 Project MERCEDES ... TRADE # 2 Closed

We closed our second trade of 2008 Project Mercedes .. RIMM. This trade was initiated Friday afternoon and closed today, Monday afternoon.

2008 Project MERCEDES .. TRADE # 2: RIMM

Jan 11, 2008 11:41:09 RIMM Buy Feb 95 Call $ 7.75 .. 4 Contracts
Jan 14, 2008 14:39:08 RIMM Sell Feb 95 Put $ 8.30 .. 4 Contracts

Time: 1 Day
Return: 14.19 % or $220.00


Account Value: $ 5360.00

Good day.

Harry

2008 Project MERCEDES ... TRADE # 2 Open

Our second trade of the 2008 Project MERCEDES is RIMM, initiated early afternoon today. More details will be posted only after we close the trade.

Markets are sharply lower today even after supportive statements yesterday from the Fed. Wall Street slump of today revives serious recession fears and are as a result of AmEx profit warning and potential Merrill Lynch writedowns.

2008 has been a rocky start for an election year and volatility is high, giving us wide swings.

Let us enjoy the rocky ride and make the best of swings.

Harry

2008 Project MERCEDES ... TRADE # 1 Closed

NONFARM payroll Number at 18000 rocked the markets and we did not enter any new trades. However, we closed our last trade of 2007 with a marginal 1.58% gain ( enough to pay the commissions ) and that helped us close the year 2007 with all winning trades.

Jan 04, 2008 12:52:30 AMZN Sell Jan 90 Put $2.56 ( Avg )

Time: 9 Days
Return: 1.58% or $4.00 Per contract

Selloff was brutal and all day long and recession worries are revived. Dow tumbled 256 points and NASDAQ plunged 98 points, biggest one day loss since September 17, 2001, the first day the markets opened for trading after having been closed in the aftermath if 9/11.

Let us wait and watch for Monday opening .. exciting times ahead.

Enjoy the weekend.

Harry

2008 Project MERCEDES ... TRADE # 1 Open

Our first trade of the 2008 Project MERCEDES is AMZN, initiated this afternoon and is already profitable, at the time of this posting. Full details will be posted only after we close the trade.

If you would like to get details of the trade as soon as we open or close the trade, please send a request to info@myoptiontrades.com.

This will be a free service for the time being. We would like you to try it absolutely FREE, so that you can satisfy yourself fully about the feasibilty of this project.

Remember, this project is only for your Educational purposes, although we trade real money in our live account. We only use "RISK" money ... money that we can afford to lose without affecting our lifestyle.

Cheers and enjoy the ride along.

Harry


3:40 PM .. Our First trade is closed and here under are full details:

2008 Project MERCEDES .. TRADE # 1: AMZN

Jan 3, 2008 14:15:34 AMZN Buy Feb 90 Put $ 5.25 .. 2 Contracts
Jan 3, 2008 15:33:55 AMZN Sell Feb 90 Put $ 5.85 .. 2 Contracts

Time: 1 Hour 18 Minutes
Return: 11.42 % or $ 120.00


Account Value: $5120.00 ( $5000.00 + $120.00 )

Note:: Commissions are not included for simplicity sake and as they vary from Broker to Broker. Buy Sell option values are exact as executed in our real account.

2008 ... Project MERCEDES

Happy NEW YEAR everyone.

2008 ... We are starting new year with a project and we will call this ..
2008 Project MERCEDES.

We will target and plan our Stock Option Trades with 15% average return expectations and build balance in our trading account so that we can buy a 2008 MERCEDES BENZ.

We will be starting with a balance of $5000 in our account and trade by trade, post our results and that will include contracts traded as well as money made or lost. We will, however, be posting full details of the trade only after we close the trade.

Our 7th AMZN trade is still partially open and we will keep you posted. So far we have all winners starting November 30th, 2007. Let us see how 2008 pans out and as things stand, it is going to be a year of high VOLATILITY and that is exactly what we need for our trades.

Good luck and Happy trading.

Harry