05/26/2010
Pulled my buy orders and am waiting for the market to offer some direction up or down.
Most companies are making their numbers but............???
05/24/2010
Closed the DELL short calls and plan to revisit higher.
Closed all DELL and have no near term options. Market looks like WetCatCrap......
05/20/2010
The constant sell offs since the market lows of Mar 09 are taking a toll on patience. From mid April to now has been the largest downdraft so far.
The talking heads are saying sell.... Same as usual, it seems that there are always 50% Bears or Bulls and all are exceptionally intelligent. It only takes that one percent that moves from one camp to the other taking the market up or down and dam the fundamentals........
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DELL beat by .03 but gives a poor forcast forward ( selling off in after hours ).
Picked up more XLF 2012 16 Calls and missed on the near term Puts.
Still bullish long term but am looking for more short term protection.
05/19/2010
More DELL Aug 15 calls
05/18/2010
Germany bans naked short selling today.
Events in Europe take the market down again.
Pulled my buy orders and am waiting for the market to offer some direction up or down.
Most companies are making their numbers but............???
05/24/2010
Closed the DELL short calls and plan to revisit higher.
Closed all DELL and have no near term options. Market looks like WetCatCrap......
05/20/2010
The constant sell offs since the market lows of Mar 09 are taking a toll on patience. From mid April to now has been the largest downdraft so far.
The talking heads are saying sell.... Same as usual, it seems that there are always 50% Bears or Bulls and all are exceptionally intelligent. It only takes that one percent that moves from one camp to the other taking the market up or down and dam the fundamentals........
-
DELL beat by .03 but gives a poor forcast forward ( selling off in after hours ).
Picked up more XLF 2012 16 Calls and missed on the near term Puts.
Still bullish long term but am looking for more short term protection.
05/19/2010
More DELL Aug 15 calls
05/18/2010
Germany bans naked short selling today.
Events in Europe take the market down again.
05/17/2010
Picked up more C Calls ( Short term Jun 2010 4's) They're trading like they are going out of business.
4:pm
Positions close flat after a big sell off. Bears and bulls tugging at both ends of the string.
Fear and greed rule and threw the fundamentals out the window.
A good time to look for some "good stuff cheap"................
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05/13/2010
Current positions and thoughts.
( all LEAPS are calls )
BAC - JAN 2011 25 Calls JAN 2012 20 and 2.5 Leaps
C - Too many positions to post - ( A disappointing trade )
DELL - DEBIT SPREAD - Long AUG 2010 15 Calls Short JUN 16 Calls
DIA - MAY 2010 112 CALLS ( started as a debit spread but closed short position )
GE - JAN 2012 20 and 22.5 Leaps
HSY - MAY 2010 48 CALLS ( started as a debit spread but closed short position )
MET - MAY 2010 48 CALLS ( started as a debit spread but closed short position )
XLF - JAN 2012 16 and 17 Leaps
VIX - JUL 2010 17 PUTS - betting that VIX trades lower by July
DFS - This is a position in the actual stock which I was able to lower my cost basis by excercising protective Puts during the May 2009 down turn. DFS Fair value ( the price it can fetch on the sale of it assets ) is 14.95. As soon as this trades above 19 ( just an arbitrary number ) I'll sell ITM calls against it until it's all called away.
F was my best position doubling and tripling each leg. I should have closed all other positions the same way I did with F.
Kudos to Alan Mulally
Most of the positions should have been closed but I wanted to see how they bounce back this time ( I've done this three times since the bottom in March 09 ) and expect them ( the financials) to recover and trade up for the next couple of years but should buy puts to protect long position when they are deep in the money and sell near dated calls against the leaps for added income.
On the next rebound I will close out most positions and roll into XLF and other ETFS, hopefully by June
Trading Leaps options on individual companies is very profitable at the beginning of a recession recovery but not so much after the companies even come close to trading at "Fair Value".
Selling naked Puts on companies like MET and PRU when during a big price decline ( circa 1stQ 2009 ) when volatility is high is nice. High Vols make the OTM Puts very attractive and profitable but I would recommend selling naked puts only on companies you would not mind owning.
Selling Naked Puts is also a good way to enter a position instead of just buying the stock.
Picked up more C Calls ( Short term Jun 2010 4's) They're trading like they are going out of business.
4:pm
Positions close flat after a big sell off. Bears and bulls tugging at both ends of the string.
Fear and greed rule and threw the fundamentals out the window.
A good time to look for some "good stuff cheap"................
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Double dip?
Good info on this phenomena from recession.org : http://recession.org/news/double-dip.
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05/13/2010
Current positions and thoughts.
( all LEAPS are calls )
BAC - JAN 2011 25 Calls JAN 2012 20 and 2.5 Leaps
C - Too many positions to post - ( A disappointing trade )
DELL - DEBIT SPREAD - Long AUG 2010 15 Calls Short JUN 16 Calls
DIA - MAY 2010 112 CALLS ( started as a debit spread but closed short position )
GE - JAN 2012 20 and 22.5 Leaps
HSY - MAY 2010 48 CALLS ( started as a debit spread but closed short position )
MET - MAY 2010 48 CALLS ( started as a debit spread but closed short position )
XLF - JAN 2012 16 and 17 Leaps
VIX - JUL 2010 17 PUTS - betting that VIX trades lower by July
DFS - This is a position in the actual stock which I was able to lower my cost basis by excercising protective Puts during the May 2009 down turn. DFS Fair value ( the price it can fetch on the sale of it assets ) is 14.95. As soon as this trades above 19 ( just an arbitrary number ) I'll sell ITM calls against it until it's all called away.
F was my best position doubling and tripling each leg. I should have closed all other positions the same way I did with F.
Kudos to Alan Mulally
Most of the positions should have been closed but I wanted to see how they bounce back this time ( I've done this three times since the bottom in March 09 ) and expect them ( the financials) to recover and trade up for the next couple of years but should buy puts to protect long position when they are deep in the money and sell near dated calls against the leaps for added income.
On the next rebound I will close out most positions and roll into XLF and other ETFS, hopefully by June
Trading Leaps options on individual companies is very profitable at the beginning of a recession recovery but not so much after the companies even come close to trading at "Fair Value".
Selling naked Puts on companies like MET and PRU when during a big price decline ( circa 1stQ 2009 ) when volatility is high is nice. High Vols make the OTM Puts very attractive and profitable but I would recommend selling naked puts only on companies you would not mind owning.
Selling Naked Puts is also a good way to enter a position instead of just buying the stock.