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
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
