Sold to open, 7 uncovered puts, strike price 30 at .55 bringing in $385.00 (less Commission) Stock symbol "CSH". While the market is up today and I don't like selling puts in an up market, I can't help but want this stock even if we fall into a deep recession. Actually, I want this stock in case we fall into a deep recession, why? Well, they own so many pawn shops that they can't help but make money during a time when credit is tight. It's even hard for a consumer to get a credit card right now, so until this recession is over, I'm either a constant seller of the puts on this stock or I'll go long the stock.
Since the market has gone up the last few days, rather than be a buyer of this stock, I decided to sell out of the money puts, sticking with my strategy that if I get put the stock, it will be at a price which is 20% lower than today and if not, we'll gosh darn it, I'll just have to keep the premium and try again next month. Only time will tell whether this trade was a trick or treat. Happy Halloween and I hope all of you are making money in this very weird market.
Friday, October 31, 2008
Tuesday, October 28, 2008
The Purpose of My Stock and Options Trading Diary
The Purpose of My Stock and Options Trading Diary as I have reiterated in the past is not for you to take this as advise. You can make your own decisions and get professional opinions for yourself, but for me, I do my own research, and I try to be forward thinking and I try to make my trades always profitable. I know that they won't always be, but I have found in the past that when I write a diary of my trades and look back at my diary, I can learn from my mistakes and also it helps me to think more clearly.
In other-words, if I put on an uncovered options trade and 30 days later, it expires or I get put the underlying stock, I want to know why I put that trade on in the first place. So, I can go back in my diary and look at what I was thinking at the time when I pulled the trigger and bought or sold the equity option.
Since market opinion and sentiment as well as volatility often change and with so many talking heads on television, a person can forget why they put made the trade in the first place. I know I will forget without my financial diary. Thus this helps bring me back in time and jogs my memory to the day I made the trade. I have found that I personally trade better this way and I would suggest that you keep a diary of your trades too - why you took the position that you did as I believe it cannot hurt and may help you.
For me in the current environment, you'll find that I'm either a buy of stocks or closed end funds and am a seller of uncovered puts because I believe that stocks are cheap, but we are in a bear market, leaving me in a position to say to myself, yes stocks are cheap, but the may get cheaper, thus by selling the uncovered put, I either buy the stock cheaper by being assigned, or I keep the premium that I sold the put for.
This should work good for me and the way that I think, but as we finally hit a bottom and volatility drops, I am going to have to use other strategies that I have in my bag of tricks, but for now my feeling is that we're in a bear market that may take a while to get out from and in this time, we will see big swings in the market, but when we finally bottom for good and turn into a bull market, I will have gotten put on enough stocks at a better value than if I had pulled the trigger the same day and flat out bough the stock as opposed to selling the uncovered put that I will end up (IMHO) with a great longer term portfolio of stocks that I could not have bought any cheaper.
Just my thoughts on an up day in a bear market... you won't see me making many a trade on these days as some people like to use them to sell into the bear rally. IMHO I believe that if a person has the time and knows what they are doing that they may be able to short into a bear rally, but I don't have the time and I can't predict when the market bottom is going to take place, thus I don't trade on these day, I just watch the value of my portfolio go up, because my uncovered puts become increasingly more profitable to me and watch the stocks that I'm long go up in price. even if they will come back down if this isn't the bottom, I feel god watching them go up.
I bought 500 shares of Symbol "ZF" a few days ago at 2.70 figuring since it's a closed end fund that it was just trading to far below NAV and its gone up approx 9% since, If you were to annualize that, it would be approximately an incredible 1350% annualized return.
So, it's fun to watch.
Thx,
The Options Trader...
In other-words, if I put on an uncovered options trade and 30 days later, it expires or I get put the underlying stock, I want to know why I put that trade on in the first place. So, I can go back in my diary and look at what I was thinking at the time when I pulled the trigger and bought or sold the equity option.
Since market opinion and sentiment as well as volatility often change and with so many talking heads on television, a person can forget why they put made the trade in the first place. I know I will forget without my financial diary. Thus this helps bring me back in time and jogs my memory to the day I made the trade. I have found that I personally trade better this way and I would suggest that you keep a diary of your trades too - why you took the position that you did as I believe it cannot hurt and may help you.
For me in the current environment, you'll find that I'm either a buy of stocks or closed end funds and am a seller of uncovered puts because I believe that stocks are cheap, but we are in a bear market, leaving me in a position to say to myself, yes stocks are cheap, but the may get cheaper, thus by selling the uncovered put, I either buy the stock cheaper by being assigned, or I keep the premium that I sold the put for.
This should work good for me and the way that I think, but as we finally hit a bottom and volatility drops, I am going to have to use other strategies that I have in my bag of tricks, but for now my feeling is that we're in a bear market that may take a while to get out from and in this time, we will see big swings in the market, but when we finally bottom for good and turn into a bull market, I will have gotten put on enough stocks at a better value than if I had pulled the trigger the same day and flat out bough the stock as opposed to selling the uncovered put that I will end up (IMHO) with a great longer term portfolio of stocks that I could not have bought any cheaper.
Just my thoughts on an up day in a bear market... you won't see me making many a trade on these days as some people like to use them to sell into the bear rally. IMHO I believe that if a person has the time and knows what they are doing that they may be able to short into a bear rally, but I don't have the time and I can't predict when the market bottom is going to take place, thus I don't trade on these day, I just watch the value of my portfolio go up, because my uncovered puts become increasingly more profitable to me and watch the stocks that I'm long go up in price. even if they will come back down if this isn't the bottom, I feel god watching them go up.
I bought 500 shares of Symbol "ZF" a few days ago at 2.70 figuring since it's a closed end fund that it was just trading to far below NAV and its gone up approx 9% since, If you were to annualize that, it would be approximately an incredible 1350% annualized return.
So, it's fun to watch.
Thx,
The Options Trader...
Monday, October 27, 2008
Sold Walmart Puts
10/27/08 Sold 5 uncovered puts to open WMT Nov 35 1/2 puts at 18 putting gross $90 in my account. If the stock drops from 51.69 down to 37.5 I'll happily own the stock, otherwise I'd be glad to keep the premium. I love the volatility priced into these options. I' going to put in antoher order to sell 5 more at 1.25 in case the market sells of at the end of the day and if I don't get filled I'll wait for another sell off of the market from redemtions or just keep the premium that I've brought in so far!
Friday, October 24, 2008
10/24/08 Uncovered Option Sales & Stock Trades
Sold 2 Puts TM Nov $50 strike to open at 1.50 crediting my account $300.
My thoughts are that this company had a high near $140 within the last 52 weeks and by far the best of all auto makers IMHO, therefore I wouldn't mind owning this stock at $50, or keep the premium. IMO Toyota is the worlds premium auto manufacturer. If I end up being put the stock at $50, I'll hold the shares. Either way, I'm a happy camper and I'm glad that I can take in a premium for this stock by selling a put at the $50 Strike per share put. WOW! Never thought that I'd see that, but no-one thought that Bear Sterns could fold either! Wish me luck!
Sold 10 Puts GE Nov $10 strike to open at .20 crediting my account $200.
My thought are that Warren Buffet Bought at $20+ with a 10% return, so if I end up being put the stock at $10, while I'm not getting a 10% guaranteed return, I'm still buying the stock 50% below where the oracle bought it, That makes me happy and If I don't Get put the stock, I'll keep the money. I only sell puts on stocks that I would not mind owning at the right price and with GE brand name, I figure if they can get rid of any of the bad balance sheet stuff, even with the recession, $10 will be a good price.
Looking for good prices here possibly near a bottom - Selling puts on dips in this market can be dangerous, but then again everything has risk.
Bought 500 shares of Zwieg Fund - Closed End Fund at $2.70. I bought this because it's down about 75% from its highs and it has a Net Asset Value (NAV) of approx $3.42. So if they were able to close all of their positions today, that would leave me with a tidy .72 profit on a $2.70 stock. Mainly they have thrown the baby out with the bathwater on this one - I believe.
In Conclusion, My thoughts are if I get put stocks, I may end up with a very substantial portfolio at very reasonable prices.
My thoughts are that this company had a high near $140 within the last 52 weeks and by far the best of all auto makers IMHO, therefore I wouldn't mind owning this stock at $50, or keep the premium. IMO Toyota is the worlds premium auto manufacturer. If I end up being put the stock at $50, I'll hold the shares. Either way, I'm a happy camper and I'm glad that I can take in a premium for this stock by selling a put at the $50 Strike per share put. WOW! Never thought that I'd see that, but no-one thought that Bear Sterns could fold either! Wish me luck!
Sold 10 Puts GE Nov $10 strike to open at .20 crediting my account $200.
My thought are that Warren Buffet Bought at $20+ with a 10% return, so if I end up being put the stock at $10, while I'm not getting a 10% guaranteed return, I'm still buying the stock 50% below where the oracle bought it, That makes me happy and If I don't Get put the stock, I'll keep the money. I only sell puts on stocks that I would not mind owning at the right price and with GE brand name, I figure if they can get rid of any of the bad balance sheet stuff, even with the recession, $10 will be a good price.
Looking for good prices here possibly near a bottom - Selling puts on dips in this market can be dangerous, but then again everything has risk.
Bought 500 shares of Zwieg Fund - Closed End Fund at $2.70. I bought this because it's down about 75% from its highs and it has a Net Asset Value (NAV) of approx $3.42. So if they were able to close all of their positions today, that would leave me with a tidy .72 profit on a $2.70 stock. Mainly they have thrown the baby out with the bathwater on this one - I believe.
In Conclusion, My thoughts are if I get put stocks, I may end up with a very substantial portfolio at very reasonable prices.
Thursday, October 23, 2008
10/23/2008 SOLD Exxon Mobile Puts
Sold to open a quantity of 10 uncovered puts, symbol- xomwz. Exxon Mobile Corp Near Term Nov 22nd 35 strike puts at .18 leaving me with a credit to my account of $180 minus commissions. My feeling was that even if I got put the stock there at $35 per share, that means that I would own the stock 50% cheaper than today's closing price and if I don't get put the stock, I'll keep my profits of $180 less commissions. Earnings and warning should be coming out soon and this stock may drop, but my hunch is that it won't drop this low and if it does I will reassess whether or not I want to keep it in my portfolio of stocks to own long term or sell it right out or wait for a rally to sell it, but let's first see if I get put the stock. I rarely day trade and I put on options positions until they expire or I get put the stock unless a material fact has changed in my mind compared to what I was thinking when I entered the trade.
That is why I like to inform you of why I make the trades that I make, so that I can think clearer by writing them down. It's good to know why, in case something changes later, I will remember why I entered the trade in the first place and it will let me know if the scenario has changed dramatically enough or had a material impact on what I was thinking when I entered the trade. This is my way of knowing whether or not that I should reverse my trade at any given point!
That is why I like to inform you of why I make the trades that I make, so that I can think clearer by writing them down. It's good to know why, in case something changes later, I will remember why I entered the trade in the first place and it will let me know if the scenario has changed dramatically enough or had a material impact on what I was thinking when I entered the trade. This is my way of knowing whether or not that I should reverse my trade at any given point!
My Stock Options Trading Portfolio
I've been trading stock option on individual equities since the early ninety's and have earned over Five Million Dollars doing so. I'd like to share my trades with you. These are not recommendations as I am not a financial advisor, I am a public customer, just like you, maybe with a better knack at trading options.
While most of my options trading is plain vanilla, I do have algorithms that I've developed over the years that even thee most mathematically inclined specialist on the floor of the options exchanges have a hard time figuring out, but that's very advanced trading.
For now I'm just going to give you a list of my buys and sells of both my stock and/or option positions going forward. I suggest that you keep track of my performance as it should blow you away.
If you would like to follow me in on my trades I will try and keep them as current as possible, but I cannot guarantee it because I am a family man and have other items that sometimes need my attention more.
I am not responsible for your trades as I do not expect you to follow along with me unless you want to, but in no way is this a solicitation to do so. I am merely sharing my trading with you. You may even want to take the opposite side of what I trade, I don't really care because I trade in small amounts, so it would be no use for some hedge fund to try and manipulate any of my single trades because they would not add up to much money, and if they tried to manipulate the trades that I make on many different stocks it would cost them an arm and a leg to push a stock one way or another for the small amount that I trade.
The basic strategies that I am going to be employing for the near future are uncovered (naked) puts and cover calls and long and short individual equities. However, there may be other strategies mixed in if I see the opportunity arise.
Basically, I am trying to take advantage of the volatility and the seemingly low prices in today's stock market. However, don't be fooled because what is seemingly low today could look like the moon just one month from now as these are very uncertain times.
So, I hope you have fun watching my trades and I just don't care if you want to join and trade the same trades that I do, stay away from any of my trades, or take the opposite side of my trades.
The goal of this blog is to just share with the world my trades and that is all.
Besides, my trading may not be suitable for you, so always check with a professional before engaging in any speculative trades.
Thank You,
Sincerely,
Options Trader
While most of my options trading is plain vanilla, I do have algorithms that I've developed over the years that even thee most mathematically inclined specialist on the floor of the options exchanges have a hard time figuring out, but that's very advanced trading.
For now I'm just going to give you a list of my buys and sells of both my stock and/or option positions going forward. I suggest that you keep track of my performance as it should blow you away.
If you would like to follow me in on my trades I will try and keep them as current as possible, but I cannot guarantee it because I am a family man and have other items that sometimes need my attention more.
I am not responsible for your trades as I do not expect you to follow along with me unless you want to, but in no way is this a solicitation to do so. I am merely sharing my trading with you. You may even want to take the opposite side of what I trade, I don't really care because I trade in small amounts, so it would be no use for some hedge fund to try and manipulate any of my single trades because they would not add up to much money, and if they tried to manipulate the trades that I make on many different stocks it would cost them an arm and a leg to push a stock one way or another for the small amount that I trade.
The basic strategies that I am going to be employing for the near future are uncovered (naked) puts and cover calls and long and short individual equities. However, there may be other strategies mixed in if I see the opportunity arise.
Basically, I am trying to take advantage of the volatility and the seemingly low prices in today's stock market. However, don't be fooled because what is seemingly low today could look like the moon just one month from now as these are very uncertain times.
So, I hope you have fun watching my trades and I just don't care if you want to join and trade the same trades that I do, stay away from any of my trades, or take the opposite side of my trades.
The goal of this blog is to just share with the world my trades and that is all.
Besides, my trading may not be suitable for you, so always check with a professional before engaging in any speculative trades.
Thank You,
Sincerely,
Options Trader
Subscribe to:
Posts (Atom)
Posts
