Saturday, June 30, 2007
I took a look at the IBD 100 list. Decided to put an alert for the following stocks. I don't think I'll be trading options on these, the spreads are a bit too large for me.
CNH above 51.50
BTJ above 45
MICC above 92.70
NILE above 61.50
SPSS above 45
MBT above 61.50
Friday, June 29, 2007
Buy, Sell - 1 NYX Aug 95 Put @ 11.10 (sold @ 11.70)
This was strictly going to be a day trade. I bought this when the stock broke 74.50 (which looked like support to me) then tried to reverse but it acted as support. I didn't want to hold this put over the weekend, especially with all the bullish talk on a holiday shortened trading week.
I could have actually sold this for a higher price when the market slumped late afternoon, but completely missed that ride, I sold my position a few minutes before that.
Thursday, June 28, 2007
Buy - 1 BZH Aug 30 Put @ 4.30
Bought this on a break of the opening range high. Was a little hesitant, since it was already 8% down, but decided to go ahead with it. I think a lower risk short entry on this would be around (IMO) 27.50.
Sell - 1 RIG Aug 95 Call @ 13 (Bought @ 12)
This thing sure took a tumble.. I put in an order for 14, but no go. Had to settle for 13. Oh well, a profit is a profit. It's a volatile market out there.
Wednesday, June 27, 2007
Buy - 1 RIG Aug 95 Call @ 12
My old friend RIG might bail me out of my misery of my last few trades. Bought it around 105, which acted as support, after it broke past it and then pulled back towards it. The late day rally in the market as well as oil definitely helped it along.
Buy - 1 CTX Dec 55 Put @ 14.30
I think this entry was a little premature. 41 did look like resistance to me, but was taken out during the afternoon rally. The expiration is in Dec, so I might be holding this one for a while.
The funny thing I noticed was that the bid for the 55 strike put options is the same for all the months till Jan '08, the asks are nearly the same as well. I wonder why anyone would actually purchase the Aug Put options when they can buy the Jan ones for the same price.
Monday, June 25, 2007
Sell - 5 DIA 134 July Puts @ 1.60 (Bought @ 2.05)
I'm almost embarassed to write this post. But it has to be done, this is hopefully the only way I'll learn, and the main reason why I started this blog to begin with.
I really can't figure this trade out. I entered it at the wrong time - towards the end of the day before the weekend when Dow was almost 160 points down, and I exited it when it was almost 100 points up. So essentially I bought high sold low.
Anyway, back to the drawing board. Hopefully no more stupid DIA trades from me.
Saturday, June 23, 2007
BUY - 5 DIA 134 July Puts @ 2.05
I guess the gambler in me got the better of me. Wanted to make a quick profit on DIA when I saw it going down, but it didn't quite work out too well for me. I'm still holding on to these and I don't think it's a very good idea to hold these over the weekend, especially on such a volatile market.
DIA trades never work for me. The last time I entered a DIA trade, was when I entered Long Calls a day before the DOW fell 500 points. Not a fun trade :)
No more DIA trades for me!
Thursday, June 21, 2007
Buy - CCJ Aug 45 Call @ 9.10
I had set an alert for CCJ a few weeks ago. It was triggered a few days ago but I didnt act on it. The stock then pulled back and my alert was triggered once again. This time I bought a call.
Sell - JCP Nov 85 Put @ 12.10 (Bought @ 11.10)
Although this expires in November, I decided to close it when I saw the Dow go up 60-70 points in a couple of minutes. I guess I don't have the patience to hold options for the long term :) .. especially puts. Oh well, a profit is a profit.
Wednesday, June 20, 2007
Buy - JCP Nov 85 Put @ 11.10
Bought this when the stock broke 75 in the morning. It actually reversed after that, something that seems to happen to me most of the time. Maybe I should learn to be a little more patient on my entry.
Saw this pick on Trader Tim's website.
Monday, June 18, 2007
Just wanted to summarize what I've learnt and what I want to adhere to when I make my next purchase -
1. Buy options that have at least 3 months expiration on them. One month expiration are a bit too volatile for me.
2. Don't fight the trend.
3. Respect stop loss. I'm thinking of keeping it around 20% for options.
Most of them may be 'common sense' rules and could be found in most books, but I guess you don't realize the importance of them until you've experienced them yourself. I'll keep on adding to these as time goes by.
Sell - 22.50 Jul Call @ 10.30 (Bought 12.50)
Sold this on a break below 33. I felt it was holding 33 as support for a while, and once it gave way, didn't want to hold this any longer. This trade went against me the moment I bought it. The only reason why I bought it was because it looked oversold at that time and I was anticipating a bounce. That's no good.
Looking at the way RIG and POT have behaved the past few days, makes me feel pretty crappy that I sold them a couple of days ago. Left a lot of money on the table. I wouldn't have sold them had there been more time on the expiration.
So I've decided to put in another rule -
Buy options at least 3 months out.
Labels: CAL, lesson
Thursday, June 14, 2007
Sell - RIG July 90 Call @ 12.70 (Bought @ 11.10)
Energy looks overbought to me. Might get back in if it pulls back a little. It's gone up 5-6 bucks in the past couple of days.
Sell - POT July 70 Call @ 7.80 (Bought @ 6.80)
The markets looked overbought to me. Wanted to book a profit on this one.
Wednesday, June 13, 2007
Buy - POT July 70 Call @ 6.80
Bought POT on a break of 75. It held 75 today. Let's see if it it can hold it :)
Still holding on to CAL .. one of my dumbest trades.. but I guess RIG made up for it today.
Tuesday, June 12, 2007
Buy - CAL 22.50 JUL Call @ 12.50
While the whole world was short CAL, I decided to buy a call on this. Big mistake. Never try to swim against the current!
Will hold this for a day or so, if the pain is too much, will get rid of it.
I got caught in a bull trap on this one. I should have waited for a confirmation on this. The correct way to have played this - Trader Jamie
Lesson: Don't fight the trend. Always wait for confirmation.
Labels: CAL, lesson
Saturday, June 09, 2007
Sell - RIG 90 July Call @ 8
Energy stocks were very weak in the morning. Should've held on to it longer, as they moved up during the day. Still holding 1 more of this option. Currently negative on the RIG trades.
Thursday, June 07, 2007
Still holding RIG. Went back to my bad old trading habits of not respecting my stop losses. I always had the "this is an energy stock, it will bounce up" thought in the back of my mind. That's a no-no.
When it comes to options, you need to be even more disciplined as compared to stocks. In this case, although the stock was down 'only' 2.7%, the option that I was holding went down 10 times that (since my avg cost was 10).
Anyway, I'll be getting out of this if the markets are down tomorrow as well.
Lesson: Respect stop-loss. You can always get back into the trade if it goes higher.
Labels: lesson, RIG
Sell - AAPL July 115 Call @ 14.10, 12.70
Sold both AAPL calls. The obvious reason for the sell - market weakness. The less obvious reason - "Kiss of Death" Cramer recommended this stock. His picks are usually pump and dump candidates. I'll revisit AAPL when the market settles.
Total Profit on AAPL calls, $650 after commissions.
Wednesday, June 06, 2007
No trades today
Didn't trade today. I would like to see the markets settle for a bit. I might look to add GOOG options if the market acts well.
Still holding -
2 RIG July 90 Calls - Up $50
2 AAPL Jul 115 Calls - Up $330
Tuesday, June 05, 2007
Buy RIG 90 July Call @ 11.10
The market looked to reverse in the afternoon. Bought back the option that I sold earlier for 11.80 :). Currently holding 2 of these options.
Buy - AAPL July 115 Call @ 10.70
AAPL seems strong at these levels. It was looking strong in a weak market. Currently holding 2 of these options.
Sell - RIG 90 July Call @ 12.80
Sold RIG market looked very weak at that time. Had bought it for 8.4.
Monday, June 04, 2007
Buy - AAPL July 115 Call @ 9.40
Bought 1 AAPL
July 115 Call @ 9.40.
Bought it in the afternoon after the stock went above 120. 120 looked like a psychological resistance/support to me.
Friday, June 01, 2007
Sell - JOYG 45 June @ 12.70
today @ 12.70 (purchased @ 8.60). This stock as well as the market looked extended to me at that time. Might as well take my profits. I might revisit it if it pulls back.