Tuesday, November 10, 2009

10 Open Positions

November expiration

1)RIMM sold 1 put at $60 strike with Nov 09 expiry for (Max profit:$100)
2)STEC Sold 5 puts at $12.5 strike with Nov 09 expiry for (Max Profit:$250)
3)AA sold 5 puts at $13 strike with Nov 09 expiry for (Max Profit:$200)
4)EGLE sold 10 puts at $5 strike with Nov 09 expiry for (Max Profit:$400)

December expiration

1)EGLE bought 200 share covered Call at $5 strike with Dec 09 expiry (Max Profit:$134)
2)MGM bought 100 share Covered Call at $9 strike with Dec 09 expiry (Max Profit:$104)

January Expiration

1)DRYS sold 10 put spread at $2.5/$5 strikes with Jan 11 expiry (Max Profit:$1100)
2)SOHU sold 1 put Spread at $55/$80 strikes with Jan 11 expiry (Max Profit:$1665)
3)STEC sold 5 puts at $12.5 strike with Jan 11 expiry (Max Profit:$1800)
4)GE sold 5 puts at $12.5 strike with Jan 11 Expiry (Max profit:$900)

15 comments:

  1. Today I closed the following positions:

    10 EGLE puts for $150. Profit = $268.5 of $400.

    5 GE puts for $685. Profit = $209.35 of $900

    5 AA puts for $90. Profit = $104.25 of $200

    1 RIMM put for $73. Profit = $24.80 of $100

    5 STEC puts for $225. Loss = -$7 of $225. Very weak. Still holding longer dated puts.

    Today seemed like a good day to take some profits.

    Today I booked total profits of $600.

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  2. I just sold 2 puts on C strike price $5 Jan 2011 for $1.42. Obviously I'm betting C goes higher. Trying to test this put selling puts thing.

    Sold a bunch of covered calls on almost all positions today because I think we will see a significant technical pullback in the next couple days... at which time I will look to pick these back up and wait for another opportune time to turn around and sell cc's.

    ThanX Dom & Jason for getting me started.

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  3. I am not sure we will get a techincal pull back in the next couple of days. As we have seen nice consolidation, which leans me more on a higher probabilty of upside than downside in the short term.

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  4. Consolidation? We've seen up 8 days. Consolidation means sideways while the trend has been pretty vertical. The market is struggling to go higher as we closed midway through the candle. What is your catalyst for the marketing moving higher tomorrow? Volume is declining too. We'll see but I think caution and risk management are high right now.

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  5. Just my two cents, there is two gaps on the S&P chart in the last 7 trading days. In my limited technical background I've found that most gaps get filled and all double gaps got filled on the 7 or 8 stocks I had been watching. The only question is how long until they got filled. I got behind in my chart recording and don't know how to go back and look at a given five day interval for the weeks I missed. I'll email you some slides of when I was keeping track. My goal was to use statistics and see if there was an opportunity to exploit. Like was there an average days time period until the gap got filled. If so, then you can devise a plan to properly profit from it. It's something I might revisit after school is out.

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  6. What I meant is, I think that the last few days in my opinion have been consolidation days near the highs. I think that we may get a few more consolidation days before we go higher.

    But to be honest I really don't care what happens in the short term. I would actually welcome a technical pull back as this will give me another opportunity to establish positions at more desirable prices.

    So in all honesty I hope that you are right and I am wrong. Otherwise I am left on the sidelines.

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  7. For me this would not be the time to initiate new bullish positions. This would be the time to manage risk by moving up stop losses and/or taking partial profits on certain stocks. Or selling out of the money covered calls. Or as Jason may be suggesting putting some bearish positions on for the short-term. Right here's where the dumb money piles in buying from the smart money. But as long as cheap money persists the market should continue to rally. I'm hoping for this to be the next bubble at least lasting for the next 6 months.

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  8. Mark,

    I obviously agree with your point of view, otherwise I would not have used today to book profits. I do think eventually we dip and it will present an opportunity to get better prices.

    The key sentence in my last post was that "I hope you are right and I am wrong otherwise I would be left on the sidelines".

    I was just saying that I think that we see more upside before we see the technical pullback that you speak of. Never did I mention about adding any positions here.

    I think we are on the same page.

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  9. Dom, I think we're both nick pickety things. I think we both made comments that were unnecessary and that we are on the same page.

    What I've noticed is that money makes us sensitive to criticisms. This is why I don't like posting trade ideas on blogs. When someone's making money they get real chatty but go silent when they're struggling.

    I probably won't be posting things here much in the future.

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  10. I would urge you to continue to post. As in my opinion this was one of the main reasons of this blog. It is a forum where we can post our ideas and get feedback from our peers on the positions that we may have overlooked. I do not take any of the criticism personally, I actually enjoy it.

    For example the other day, Jason had mentioned about collecting fat premiums and how risky they can be. That made me do a double look at my short puts in STEC to make sure I understood the risk and was still willing to stay in the position. I did however take on more risk than I should had in STEC by selling the front month options on such a weak stock, which is why I covered those basically at a push this morning.

    I think that it is very healthy to be challenged. And sometimes you may or may not notice that I like to play devels advocate just for the sake of argument.

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  11. I agree, the purpose of the forum was to share ideas, not to make sure you could convince others that you are right. George Bush was unwilling to listen to other's views. Nobody is trying to be malicious. We can agree to disagree. I can point out several things I've learned in the short-term from this forum so please reflect later on your current feelings as we all benefit from active participation and we all suffer from a lack of it.

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  12. Sorry but had a crappy day which I used to vent onto this forum. Tired of coming to a crappy city driving through TJ early in the morning being eyeballed by the male prostitutes on Santa Monica, the petty flare ups in high school office BS with my co-workers (talking about a mutiny), not being able to trade the open in the morning but only managing my swing account, being surrounded by water cooler gossip like Jon & Kate or some other celebrity scandal, coming into the holiday stress time... whenever i receive a notification that someone has posted something in the forum I become frustrated jealous because I can't be relaxed and focused on what I want to do. I'm turning off the cell phone alerts that way I can't review when I'm at home relaxed.

    I really want to get transferred to HB when we open a location in the Bella Terra around September next year so I'm a lil anxious. It's like the perfect dream scenario for me.

    I'll continue to post but I probably won't be that active right now as I need to focus on work & watch my anger management.

    Keep the options posts going because I really want to get more involved & start making more $$$.

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  13. Looks like I was a day early on those front month puts on STEC that I closed out yesterday. But hignsight is always 20/20.

    Instead of a push I could had closed bought them back at about $0.15 today. Oh well better luck next time.

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  14. Hey Mark,

    Just thought I would follow up on our market calls last week. It is the very reason that I love trading, you can have two traders with different views and both can make money. You got your pull back and I got my new highs.

    Very Nice!!!

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  15. Closed out two smaller positions today:

    EGLE covered call position, Captured $99 of $134 total profit potential a month before options expiration. Or about 75% of the profit. A lot can happen in a month, so I am happy to take some risk off the table, even though it is a small position.

    Also closed out MGM covered call position, captured $81 of $104 profit potential or about 78% of profit max.

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