Updates to the "Last 10 trades" section of the blog will be made shortly.
- Stock Options Ideas and Strategies
Wednesday, February 29, 2012
Target for position 50
Target for position 50 is $1.65 for today in case market drops. We will have a new target tomorrow if there are no execution today.
Alert 51: WHR Put
+ APR20 '12 77.5 Put at $4.70
Comments: Speculative trade on an overbought stock for a quick 20% gain
Updates to the "Last 10 trades" section of the blog will be made shortly.
Tuesday, February 28, 2012
Alert 49 : GILD Calls Adjustment
Sold GILD MAR16 '12 46 Call at a credit of $1.47
Comments: Net cost for GILD position is $0.83 (2.30-1.47).
Updates to the "Last 10 trades" section of the blog will be made shortly.
Monday, February 27, 2012
Market will Peak-Out This Week
GILD is the only long position for March expiry which I'd either close or convert to spread by selling 45/46 call. It is likely that market will peak out this week at least for the short term. VIX beginning to rise again, and it seems traders are protecting gains for a potential pullback. I am considering a VIX spread as well.
It may be a good idea to protect the long positions or buy back-month calls.
It may be a good idea to protect the long positions or buy back-month calls.
Friday, February 24, 2012
Alert 50 - SPY Butterfly
SPY Butterfly at $1.23
(Buy MAR 02 '12 139 Call
Sell MAR 02 '12 136 Call
Sell MAR 02 '12 136 Call
Buy MAR 02 '12 133 Call)
Comments: My order is open and will track it only if this signal gets execution. The trade is placed assuming that the SPY will trade between 135 and 138 by closing on March 02, 2012.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Wednesday, February 22, 2012
Alert 49 : GILD Calls
GILD MAR16 '12 44 Call at $2.30
Comments: Speculative play. Stock hammered 20% in last 5-day period and should give a pop if market holds well. This should also balance short positions. I am also watching home builders ETF for potential long positions.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Tuesday, February 21, 2012
Closed alert 48 for 38% Gains
Closed alert 48 for 38% Gains
Updates to the "Last 10 trades" section of the blog will be made shortly.
Friday, February 17, 2012
Alert 47: IR Put
IR MAR16 '12 41 Put at $1.30
Comments: Stock is overbought. This is an out of money, speculative put. I will quickly get out on any 20% gain or will convert to spread.
Follow us at Facebook/ Twitter for instant access to the posts at http://www.mywealthyoptions.blogspot.com/
Updates to the "Last 10 trades" section of the blog will be made shortly.
Thursday, February 16, 2012
Close alert 43: TLT at $1.28
Close alert 43: TLT at $1.28
Updates to the "Last 10 trades" section of the blog will be made shortly.
Wednesday, February 15, 2012
Alert 42: Closed for 12% Gains
TTWO position is closed. Please visit the blog for more information on this trade.
Tuesday, February 14, 2012
Monday, February 13, 2012
Guestimates aren't Working
It was interesting to read a number of different views of market pundits over the weekend. It was evident through the fact that TLT rose along with broader market. Typically, TLT and QQQ/SPY have inverse correlation. Predictions begin to diverge though still most traders have an upward bias.
Market bears caught up on the wrong side will be forced to roll over in the current options' expiration week. The week should have limited downside, if any.
Market may drift lower beginning succeeding week. On that hypothesis, I initiated few conservative bearish calls for the following month. Another 2% rise shouldn't sweat us. TLT and QQQ inverse relationship should keep the portfolio in balance.
IR looks like a perfect short. It is extremely overbought, but an upgrade kept me away from this stock.
Alert 46: Diagonal Call Spread
OPEN Diagonal Call Spread at a debit of $4.60
(Sell FEB 17 '12 45 Call
Buy MAR 16 '12 40 Call)
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 45 - QQQ Put Spread
QQQ Diagonal Put Spread at a debit of $1.44
(Sell MAR 16 '12 63 Put
Buy MAR 30 '12 65 Put)
Comments: Market is not able to break overhead resistance. Bond prices didn't fall in spite of market strength indicating large investors are churning their portfolio by adding bonds. Volatility Index is rising. It could be a short term top.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Friday, February 10, 2012
Another Great Week, $12,711 Gains in 2012 as of 02/10/2012
Market pulled back this week after several positive weeks in a row. Marget never got into a positive territory unlike previous pullbacks over the last four weeks. VIX is spiking; indicating short-term top in the market. SPY 1350 continues to be a strong resistance. It will be interesting to watch Feb options' expiration week. I am expecting lackluster March options' month though next week will be volatile.
Nice gains were booked this week, in spite of rolling over losses from prior week. All three positions open today are spreads, so we will use the spread legs to our advantage depending upon the tide in the market. Positions are well balanced leaving about 70% of portfolio in cash.
2012 Portfolio Statistics
Talk to you next week.
Nice gains were booked this week, in spite of rolling over losses from prior week. All three positions open today are spreads, so we will use the spread legs to our advantage depending upon the tide in the market. Positions are well balanced leaving about 70% of portfolio in cash.
2012 Portfolio Statistics
Total Gain (All Trades) 508%
Average Gain/Trade 12%
Portfolio Gain $12,711 (64%)
Win Rate 80%
Average Held Days 3.34
Talk to you next week.
Alert 44 - QQQ Diagonal Spread
QQQ Diagonal Put Spread at a debit of $2.24
(Sell MAR 16 '12 63 Put
Buy MAR 30 '12 66 Put)
Comments: It's a portfolio balancing act. Market isn't rallying like every other pullback. TTWO Feb calls are also sold to collect premium.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 43 - TLT Calendar Spread
TLT 116 Calendar Call Spread
(Sell FEB 17 '12 116 Call
Buy MAR 16 '12 116 Call)
Comments: Bonds are in medium term downtrend but rallying on the weakness in the market. Target : $1.50 or rollover to next week
Follow us at Facebook/ Twitter for instant access to the posts at www.MyWealthyOptions.blogspot.com
Follow us at Facebook/ Twitter for instant access to the posts at www.MyWealthyOptions.blogspot.com
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 42 : New Position
Buy TTWO Mar16'12 15 Call at $1.25
Comments: Jim Cramer likes the stock. Potential support at 15.72 and huge open interest for any short covering potential. I will sell Feb call to make it a spread if stock moves higher.
| Feb 10, 2012 |
| UXXX5008 BOT TTWO 20120316C15 XXX@1.25 |
| ALERT: UXXXXXXX BOT TTWO 20120316C15 XXX@1.25 as of 2012-02-10 11:51:45 |
| Interactive Brokers |
Updates to the "Last 10 trades" section of the blog will be made shortly.
Several Position Closed
Please see the blog. Decent gains are booked for the week.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Thursday, February 9, 2012
Targets for Open Positions
NFLX Diagonal Spreads : $2.30
RHT Veritical Spread: $0.85 to $0.90
Comments: I suggest to close NFLX positions tomorrow. RHT should have a GTC order in place to realize 40-50% gains.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Several Positions Closed
Comments: Several losing positions are closed. SPY is trading well above 135 and should act as a support going forward. RHT is well above 48 levels and if it stays here for another week we should have 67% gain on this trade compensating losses of all closed positions today. NFLX positions are in money as well.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Wednesday, February 8, 2012
Market Consolidation
It seems the market is consolidating and finding resistance around SPY 135 levels. The action in the market is really surprising and may push the market even taller if SPY 135 holds well. There are plenty of people caught up on the short side of the market and will be forced to rollover/ close their positions giving tailwind to a move higher.
We should do well this week if the market closes on Friday at a level trading today. NFLX couldn't sustain above 127. NFLX 120 to downside and 127 to the upside are the levels to watch to protect this trade. Doubling a position doesn't bode well with my portfolio! Trade is still favorable at the close today.
There were enough opportunities to close SPY diagonal spread today, but RHT was not high enough to act on that potential trade. This is a balancing act. Portfolio will do fairly in spite of gains/losses from individual trades.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 41 - NFLX Calendar Spread
Netflix Calendar Spread for $1.80
- FEB 10 '12 + FEB 17 '12 130 Call
Comments: Doubled the position same as alert #40 at the market open today. This trade will be profitable if NFLX price settles between 120 to 135 on Feb 10, Friday. NFLX will have resistance at 133 and support at 120.
| Feb 08, 2012 |
| UXXX5008 BOT NFLX-COMB -@1.8 |
| ALERT: UXXXXXXX BOT NFLX-COMB -@1.8 as of 2012-02-08 09:32:37 |
| Interactive Brokers |
Updates to the "Last 10 trades" section of the blog will be made shortly.
Tuesday, February 7, 2012
Alert 40 - Netflix Calendar Spread for $1.95
Netflix Calendar Spread for $1.95
- FEB 10 '12 + FEB 17 '12 130 Call
Comments: Highly speculative position. This trade will be profitable if NFLX price settles between 125 to 135 on Feb 10, Friday. NFLX will have resistance at 133 and support at 120.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Position #35 and #37 closed
Please see the track record for details.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Monday, February 6, 2012
Neutral Positions for Mild Pullback or Rally
Tech and Banks are leading the market. If banks continue to lead, market may go higher another 2-3%. I am expecting a mild pullback before another leg of a market rally. On an intra day basis, market is showing strong and hardly any pullback can sustain. Greece is the likely news for the next couple of days.
After closing GS puts for a nice gain, and adding a position on the long side, portfolio is evenly balanced. Two positions are in the money, and other two are at a loss. Overall, today's trade was an attempt to improve the likelihood of weekly gains after rolling-over loss making positions from the previous week.
NFLX looks interesting speculative play. Banks are overbought, but aren't giving up gains. Large BAC calls are bought by speculators. There are several stocks on my watch list. Due to lack of technical support and resistances, my move will be conservative with the objective of preserving capital.
Alert 38 - RHT Vertical Spread for a debit of $0.60
Buy 17FEB2012 47 Call
Sell 17FEB2012 48 Call
Comments: The purpose is to balance the portfolio by adding a call to our open positons.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 36 Closed at $3.55 Credit
Alert 36 Closed at $3.55 Credit
Comments: It may give more if market goes down, but let's book gains as our entire portfolio is on the short side. More than 50% of the portfolio is in cash now.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Friday, February 3, 2012
Challenging Week, $11,000 Gains in 2012 as of 02/03/2012
After four consecutive weeks of about 100% gains/week, we were stopped out today. Seagate's strong results and EMN upgrade by Goldman Sach led to first losing week in 2012. Profit on TXN, CMI, and STJ trades was not enough to overcome losses of STX and EMN.
Refer to 01/27 post, this week is historically bullish and validated the record. Historically, following week should be weak, so I am mostly shorting the market. With market hitting 3-year high, it was a conscious decision to enter convervative/hedged bearish positions. Next week should be in-money provided S&P closes below 1350.
A few autotraders and bears are caught up on the wrong side of the market. I will watch their moves. S&P 1350 should act as a resistance, if not, market may go higher another 2% before a decent pullback.
45% of the portfolio is in cash (additional premium is collected for GS, SPY Diagonal spreads) to take advantage of any market opportunity.
Every week cannot be profitable. In spite of losses this week, the portfolio is still had $11,000 gains. Open positions are losing $15,00 approximately.
I am looking forward to the following week.
Some of you are asking for the real time alerts. I am planning to start offering real time alerts from Q2, 2012. In the meantime, please send me an email if you got an opening trade execution. I will take my best effort to communicate closing signals prior to posting them on the website.
Talk to you next week.
Follow us at Facebook/ Twitter for instant access to the posts at http://www.mywealthyoptions.blogspot.com/
Alert 37: SPY Diagonal Put Spread
SPY Diagonal Spread at a Debit of $2.44
(Sell FEB 10 '12 135 Put
Buy FEB 17 '12 138 Put)
Comments: Do not open this position if you think that portfolio is Put biased. Market is all about risk, and I do believe that SPY will face resistance at 135. This will be the 5th open position leaving 45% of the portfolio in cash. I am putting money where my mouth is.
(Sell FEB 10 '12 135 Put
Buy FEB 17 '12 138 Put)
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 36- Collected additional premium
Sell GS 10Feb12 115 Put and collect $1.34
Comments: Net cost for the trade is $3.06 ($4.40 - $1.34)
Updates to the "Last 10 trades" section of the blog will be made shortly.
New and Closed Postions
Alert 33 Close: Closed EMN at a credit of $1.55
Alert 36 : Buy GS 17Feb12 120 Put at a deibit of $4.40
Comments: I am really rolling over put positions from EMN to GS. I will sell Feb 10 GS Put to collect some premium.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Mid-Day Update
Today is the testing time for us. Not only, the employment numbers lifted the stock market, but also Zacks and Goldman Sach upgraded Eastman Chemical Company (EMN) to "Buy". This is not the first-time things are working against my wish. CMI calls closed early this week could have been fetching 300% gains today. Any ways let's be forward looking.
Rollover early in the morning helped to reduce the cost of SPY diagonal spread by $1.02. This may still be a profitable trade if market takes a breather next week. If the market continues to go, higher and SPY settles at 136, we will only have about 30% loss on this trade. At 11:58PM, SPY positions are at 20% loss.
The price action is similar to 2011 where everything was positive, and then we never touched those highs for entire 2011. I will stay cautious.
I may consider closing EMN position at a loss if stock doesn't show any weakness though stock is very overbought at this time.
We are still making huge gains for 2012.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 19 - VIX Position Closed
VIX Diagonal Spread is closed for a credit of $3.20
Comments: Risk/Reward is no more attractive.
--
Updates to the "Last 10 trades" section of the blog will be made shortly.
Adjustment to Alert #32 and #34
SPY Diagonal Spread Rollover at a credit of $1.02
(Buy FEB 03 '12 133 Put
Sell FEB 10 '12 134 Put)
Thursday, February 2, 2012
Texas Instruments Position closed at 11% Gain
Texas Instruments position was closed later in the day for 11% gain in just three days. You will still have a chance, probably at a better price, if you didn't execute it yet.
Short leg of SPY spread (Feb 03) will expire tomorrow. Either we will close the position (Target $3.15) or rollover to the next week for even greater profit. The best gains will come if SPY settles at 133. It means that a slight upside will bring more gains in SPY, and a down market should help EMN position. At the market close today, all positions are in money (or at break even) and I am expecting over 10% gains tomorrow.
I hope executions were easy today for all of you. Above 18% gains tomorrow should close the week in the positive territory.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 35 - SPY Diagonal Spread for Next Week
SPY Diagonal Spread for a debit of $2.38
(Sell FEB 10 '12 133 Put
Buy FEB 17 '12 136 Put)
Comments: I am expecting beginning of a downtrend next week. This position will be profitable upto SPY 134 by Feb 10.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 34 - SPY Diagonal Spread
SPY Diagonal Spread for a debit of $2.93
(Sell FEB 03 '12 133 Put
Buy FEB 17 '12 136 Put)
Comments: Already a similar position (#32) exist. I have doubled the position.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Wednesday, February 1, 2012
DOW Overhead Resistance at 12750
It was a mixed day. Market started the day higher, but couldn't sustain DOW 12750 levels. Market was led by technology and banks. Money is rotating between sectors, so there are opportunities, but overall the market is not rising beyond the overhead resistance. Fantastic-5 (see my post on Friday) is historically bullish. I expect this week to be range-bound, but be prepared for a pullback starting next week.
STX led the tech stocks by gaining approximately 20%. Earlier in the day, I thought to hold STX for a potential pullback, but later overcame the emotions and decided to exit the trade. Over 15% gain on CMI in 1-day was good enough reason to close the position. We are still making money for the current week (15% booked gains)!
Two trades are initiated today anticipating flat to bearish market action. Part of the reason to initiate puts was to balance long position on Texas instruments.
All open positions are in the money. TXN is leading the gain, and my target is $2.20.
Talk to you tomorrow.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Alert 32 - SPY Diagonal Spread
SPY Diagonal Spread for a debit of $2.93
(Sell FEB 03 '12 133 Put
Buy FEB 17 '12 136 Put)
Updates to the "Last 10 trades" section of the blog will be made shortly.
Closed Positions 29, 30, 31
Please see MyWealthyOptions.blogspot.com for details.
An order for a credit of $2.20 for Texas position is placed and site will be updated after execution.
We are back in cash.
An order for a credit of $2.20 for Texas position is placed and site will be updated after execution.
We are back in cash.
Open Positions Update
Position # 19 (VIX) - trading at $3.20 (bought at $3.15), target $4.0
Position # 28 (TXN) - trading at $2.16 (bought at $1.99), target $2.20
Position # 29 (STX) - trading at $1.15 (bought at $2.06) - STX reported better than expected results, which pushed the stock higher by 17%. This position is sitting at a loss of 45%. STX Put option is for the month of June. Let us continue to hold.
Position # 30 (CMI) - trading at $5.15 (bought at $4.40) - CMI will report the financial results tomorrow morning. To avoid STX kind of situation, I will consider selling Feb 105/110 call against this position to manage risk.
Position # 31 (STJ) - trading at $2.50 (bought at $2.55)
Overall, open positions are sitting at about 15% loss (compare with 489% gains in January). This represents the power of risk management in the portfolio.
Updates to the "Last 10 trades" section of the blog will be made shortly.
Subscribe to:
Posts (Atom)