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