AJ

Profit +120

I'm seeing resistance around the 72 area and it looks to me that it is overbought. I decided to take profits on it.

Labels: Profit, RIMM

RIMM looks a little oversold to me here. It also looks like it's close to some support around the 69.50 area.

I'll put in a stop loss below 67.50ish area.

Labels: Nake Puts, RIMM

Profit + $211

I decided to take profits on this one. I put in a tight stop intra-day and it got hit. Everything just looks so overbought, and I wanted to protect my profits on this one.

Labels: Profit, RIMM

Happy New Year folks! I hope this year is better for the stock market than the previous year.

I apologize for not blogging recently. It was partly due to a few changes in my personal life, and partly due to the fact that I didn't trade options a whole lot due to the extreme volatility. I'm hoping for things to settle down a little bit in 2009.

I was thinking about a few New Year's resolutions I made last year, especially the one in which I would like to try out a few other options strategies. Well I did try out a few Call/Put spread trades and a few Naked Put trades and they did work out well for me. I would like to thank "Options for Rookies" for this. Selling options will generally get you more winning trades although the returns might not be as much as when you buy options.

I currently have 2 option trades open.

I Sold to Open 1 RIMM Jan 40 Put (Naked Put) @ 2.83
- I opened this position when RIMM announced their results a few days ago, I opened it when it went a little above 41. It has lost a decent percentage based on time alone.

I Sold to Open 1 USO Jan 30 Put (Naked Put) @ 2.70
- Oil looked very oversold to me. I sold this put when USO was around 30.

The market looks very overbought at these levels. Most of the stocks and indexes look like they're near resistance levels. I'll look to close these positions if the rally looks like it is stalling.

All the best to all!

Labels: RIMM, USO

It's still a pretty tricky environment to trade. When things look like the market will go up, it goes down and vice versa. Most of the charts that I'm seeing look like they're running into resistance, which were prior support areas. Here are a few charts that I felt could be worth looking into...

Labels: GS, HERO, JCP, ma, POT, RIMM

One more thing I need to remember is to get rid of options early on in the trading day. Option premiums are usually high at that time. I got stopped out of this position mid-morning. Saw this option going all the way to 16.50 (Damn). It did close below my selling point, so can't complain a whole lot.

Short term bottom in the market perhaps?

Labels: Profit, RIMM

Added one more to my current position. Avg price 2 @ 10.50.

Labels: RIMM

Bought this on a break of 100 mid-afternoon. Although it fell down soon after, the late day rally brought it back up to the same level as when I purchased it.

Labels: RIMM

Sold this after it bounced off of support at 105. It weakened in the afternoon though and is currently below 105. If the market weakens further, this could easily see 100.

Labels: Profit, RIMM

Not too sure about this one. It looked like it was weakening intra-day, but the late day rally did some damage.

Labels: RIMM