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
Thursday, March 27, 2008
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
Wednesday, March 5, 2008
SPY, AAPL, $OEX and Account DOUBLED in 65 days
Power rally fizzled out very easily, right after trading in AMBAC shares was halted at 12.01 noon.
We have closed two other positions in AAPL, leaving us two open trades in Indicies that are not doing as well. We will monitor along, although will be away all next week and that does not help as both these will expire this month, few days after return. Well, that is life. Win some Lose some.
And with closing of these 2 trades, our 2008 Project Mercedes account size has doubled since we started posting trade by trade Journal through this blog starting Jan 1st, 2008.
SIDE NOTE ::: Earlier when I started trading, there were lots of time when account size would go down and I would take family out for a dinner and we all would call that " PITY PARTY ". Times when I had good trading day, I would reward myself by a day out alone and guess to where ... COLES Book store. So many Pity Parties later, a library full with more then hundred books on trading and markets says it all. Journey worth every bit of pain and fun.
2008 Project M .. TRADE # 21: AAPL
Mar 03, 2008 AAPL Buy Apr 130 Call $ 4.825 .. 4 Contracts
Mar 05, 2008 AAPL Sell Apr 130 Call $ 5.60 .. 4 Contracts
Time: 2 Days
Return: 16.06 % or $ 310.00
Account Value: $ 9,989.90
2008 Project M .. TRADE # 22: AAPL
Mar 03, 2008 AAPL Buy Apr 135 Call $ 3.55 .. 4 Contracts
Mar 05, 2008 AAPL Sell Apr 135 Call $ 3.90 .. 4 Contracts
Time: 2 Days
Return: 9.86 % or $ 140.00
Account Value: $10,129.90 ( DOUBLE Starting capital )
Happy Trading ...
Happy March Break ahead ...
Harry
We have closed two other positions in AAPL, leaving us two open trades in Indicies that are not doing as well. We will monitor along, although will be away all next week and that does not help as both these will expire this month, few days after return. Well, that is life. Win some Lose some.
And with closing of these 2 trades, our 2008 Project Mercedes account size has doubled since we started posting trade by trade Journal through this blog starting Jan 1st, 2008.
SIDE NOTE ::: Earlier when I started trading, there were lots of time when account size would go down and I would take family out for a dinner and we all would call that " PITY PARTY ". Times when I had good trading day, I would reward myself by a day out alone and guess to where ... COLES Book store. So many Pity Parties later, a library full with more then hundred books on trading and markets says it all. Journey worth every bit of pain and fun.
2008 Project M .. TRADE # 21: AAPL
Mar 03, 2008 AAPL Buy Apr 130 Call $ 4.825 .. 4 Contracts
Mar 05, 2008 AAPL Sell Apr 130 Call $ 5.60 .. 4 Contracts
Time: 2 Days
Return: 16.06 % or $ 310.00
Account Value: $ 9,989.90
2008 Project M .. TRADE # 22: AAPL
Mar 03, 2008 AAPL Buy Apr 135 Call $ 3.55 .. 4 Contracts
Mar 05, 2008 AAPL Sell Apr 135 Call $ 3.90 .. 4 Contracts
Time: 2 Days
Return: 9.86 % or $ 140.00
Account Value: $10,129.90 ( DOUBLE Starting capital )
Happy Trading ...
Happy March Break ahead ...
Harry
Power Packed Rally and AAPL, $OEX, SPY
Rally off the lows of yesterday was power packed and all Indicies shot up this morning session and $VIX has fallen under 25 level.
AAPL shares have bounced around after the meeting yesterday, where company declared it has no plans for a Buy Back or Dividend. We had sold our March 120 Call option in anticipation of the meeting for a quick 18.52 % profit and re-entered another trade in AAPL on weakness at the open and closed same with in an hour for another quick turn around profit of 22.50%.
2008 Project M .. TRADE # 24: AAPL
Mar 05, 2008 AAPL Buy Mar 120 Call $ 4.00 .. 2 Contracts
Mar 05, 2008 AAPL Sell Mar 120 Call $ 4.90 .. 2 Contracts
Time: 1 Hour
Return: 22.50 % or $ 90.00
Account Value: $ 9,679.90
Power packed rally day(s) ahead , hopefully they last.
Have a great day.
Harry
AAPL shares have bounced around after the meeting yesterday, where company declared it has no plans for a Buy Back or Dividend. We had sold our March 120 Call option in anticipation of the meeting for a quick 18.52 % profit and re-entered another trade in AAPL on weakness at the open and closed same with in an hour for another quick turn around profit of 22.50%.
2008 Project M .. TRADE # 24: AAPL
Mar 05, 2008 AAPL Buy Mar 120 Call $ 4.00 .. 2 Contracts
Mar 05, 2008 AAPL Sell Mar 120 Call $ 4.90 .. 2 Contracts
Time: 1 Hour
Return: 22.50 % or $ 90.00
Account Value: $ 9,679.90
Power packed rally day(s) ahead , hopefully they last.
Have a great day.
Harry
Tuesday, March 4, 2008
AAPL, $OEX and SPY
Market shake out was fast and furious all day long, until final 2 hours of the trading day.
$VIX spiked higher early on while FED was speaking and contradictory viewpoints by chief Bernanke and Governor Kohn confused participants and added to volatility.
Dollor Index coming off its lows, Gold down nearly $18, Oil under $100 as the day progressed and it seemed like market turning point. We added some positions to our Index trades and cashed out one AAPL trade for a swift swing 18.52 % profit.
2008 Project M .. TRADE # 23: AAPL
Mar 03, 2008 AAPL Buy Mar 120 Call $ 6.75 .. 1 Contract
Mar 04, 2008 AAPL Sell Mar 120 Call $ 8.00 .. 1 Contract
Time: 1 Day
Return: 18.52 % or $ 125.00
Account Value: $ 9,589.90
$VIX spiked higher early on while FED was speaking and contradictory viewpoints by chief Bernanke and Governor Kohn confused participants and added to volatility.
Dollor Index coming off its lows, Gold down nearly $18, Oil under $100 as the day progressed and it seemed like market turning point. We added some positions to our Index trades and cashed out one AAPL trade for a swift swing 18.52 % profit.
2008 Project M .. TRADE # 23: AAPL
Mar 03, 2008 AAPL Buy Mar 120 Call $ 6.75 .. 1 Contract
Mar 04, 2008 AAPL Sell Mar 120 Call $ 8.00 .. 1 Contract
Time: 1 Day
Return: 18.52 % or $ 125.00
Account Value: $ 9,589.90
Have a great evening everyone.
Harry
Monday, March 3, 2008
AAPL again, $OEX, SPY Trades
March went out roaring like a Lion.
Rally almost fizzled out Friday or so it seemed for most ( and for us as well ). Bond markets were shaken up badly as 3 headge funds were rumoured unloading late Friday and that spooked everyone. Margin calls were flying everywhere for overly leveraged and that is exactly why they call "Leverage" as a double edged "Sword".
Carry trade currency pairs also broke through supports and have since stabilised. After 8 down days in a row ( and that is really quite rare ) $DXY has finally found some strength and headed higher to atleast touch the 74.50 level. Non Farm Payroll numbers this coming Friday at 8 30 AM sharp will be quite another story.
Hopefully lose hands and weak Bulls are shaken out in Stock markets as well. $VIX has spiked higher this morning and back down again since and that should calm the nerves a bit.
We have entered three new trades .. all Calls in AAPL, with 3 different time lines and strike prices. Other two trades in $OEX and SPY were rattled in this Bond market nervousnous and drawdowns everywhere and we are trying monitor and manage best we can.
As long as we are not overly leveraged, all positions in Options trading can be adjusted and managed, inspite of all the restraints and factors.
Watch continues and we still eagerly await our much anticipated Rally.
Good day ahead.
Harry
Rally almost fizzled out Friday or so it seemed for most ( and for us as well ). Bond markets were shaken up badly as 3 headge funds were rumoured unloading late Friday and that spooked everyone. Margin calls were flying everywhere for overly leveraged and that is exactly why they call "Leverage" as a double edged "Sword".
Carry trade currency pairs also broke through supports and have since stabilised. After 8 down days in a row ( and that is really quite rare ) $DXY has finally found some strength and headed higher to atleast touch the 74.50 level. Non Farm Payroll numbers this coming Friday at 8 30 AM sharp will be quite another story.
Hopefully lose hands and weak Bulls are shaken out in Stock markets as well. $VIX has spiked higher this morning and back down again since and that should calm the nerves a bit.
We have entered three new trades .. all Calls in AAPL, with 3 different time lines and strike prices. Other two trades in $OEX and SPY were rattled in this Bond market nervousnous and drawdowns everywhere and we are trying monitor and manage best we can.
As long as we are not overly leveraged, all positions in Options trading can be adjusted and managed, inspite of all the restraints and factors.
Watch continues and we still eagerly await our much anticipated Rally.
Good day ahead.
Harry
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