StayWealthy.com

Entries for the ‘Options trading’ Category

Updates on Option Trading

Sorry guys, haven’t updated for a while. I had this post in my draft for quite a long time, I should have posted earlier. As said by “e.” in my May option post: [quote]Also, mixing strategies on your portfolio – is not a good idea. It muddies the clarity of your actions. I open a […]

May 2007 Option Trades

The bad month continues… 😐 . I stopped trading in the middle of May to get a breather. I think if I were to get revenge on the market, my funds will probably get less. I figured it was my desperation to break the $5k mark that clouded my decision-making as well.

April 2007 Option Trades

Not my proudest month. A combination of bad luck and stupidity: ROK’s CFO resigned and caused the stock to drop like a tank, HOG was a gamble at the earnings play. I was also scaling up on OEX puts (Options intelligence picks) with the belief that the market is reaching resistance, but it didn’t and kept on going up. I hate losing, and I’m losing badly in this month (May) too :(… ARGH!

Balance after exit trades made in November: $3,210.11 (-28.98%). Click “read more” to see my trades.

March 2007 Option Trades

All winners this month except for mistakenly putting a limit order instead of a stop loss on my OEX puts. I ended up buying half of my original purchase after the accident because the OEX trade was not part of the star trading system, I was not very confident about it. I used the support and resistance from the point and figure chart with 30 and 50MA indicators to decide whether to get in this trade. Thanks to Lastchance who enlightened me about support and resistance using point and figure charts. He’s been trying to get me to learn it for months and I only picked it up after he’s successfully done a few trades.

The good thing about all these trades was that I made the sell decision based on the support and resistance and so far they are doing okay. It feels good to be certain about when to exit.

Balance after exit trades made in November: $4,519.78 (+18.94%). Click “read more” to see my trades.

February 2007 Option Trades

I started the new “trading strategy” this month. It’s options-intelligence.com and frankly speaking, I don’t even see it as a “strategy”. There’s very heavy reliance on the picks and the service is so vague and the service provider so fickle-minded. One e-mail says to buy if it goes through XXX price, and next e-mail says to sell it immediately because of market conditions (even though the stock/index met his price conditions). This is what happened with CROX and I was fumed. It was also my fault for not starting small with these picks resulting in a big loss.

Options-intelligence has two services, Dave’s play and Core strategy. My friends and I bought the Core Strategy system which is a membership that lasts a lifetime. The core strategy consists of 13 counters (stocks and indices) that is to be traded during the options expiry week (3rd week of each month). Included with the package is access to the options-intelligence blog which posts the blog owner’s trades from time to time (blog owner and OI owner is different, surprisingly). Although I’m dissatisfied with the core strategy, a few of my friends told me that the picks on the OI blog is really good so the purchase was well worth it after all.

Picks from Option-Intelligence core strategy this month are: DIA, QQQQ and CROX.

Only two star trading system pick this month (AGE and CHRW) because I went for a vacation during the Chinese New Year holidays.

Balance after exit trades made in November: $3,800.04 (-20.24%) *OUCH*. Click “read more” to see my trades.

January 2007 Option Trades

GLW could have been a winner if I did not leave the last contract to gamble on the earnings news. I ended up with a small loss of 1.56%.

Balance after exit trades made in November: $4,764.62 (+10.55%). Click “read more” to see my trades.

2006 Option Trades Report Card!

I have summed up my trading performance for the year of 2006. Analyzed the amount of calls versus puts I traded and also the wins and losses on both. It’s nice to be able to look back. My initial goal was to make $1000 at the end of the year, I reached that goal sooner than I thought (March). I must have underestimated trading options, then I raised the bar to make $10k by the end of the year. Unfortunately, I couldn’t achieve that goal. However, I did manage to double my capital so I’m very pleased with year 2006. I look forward to another profitable trade in 2007 and will be trying a new system which I’ll also be blogging here.

Okay, presenting 2006 trade analysis. Drum roll please……

December Option Trades 2006

IVGN was mistakenly sold off. After ASF was stopped out, I was surprised to see that I lost so much on that trade alone. All losers this month. LOL! Oh well, hope for another profitable year in 2007 🙂

Balance after exit trades made in November: $4,309.94 (-12.28%%). Click “read more” to see my trades.

Interesting thing that happened during JBX trade

I was cleaning my hard drive and noticed a text file which I created in November when I was trading JBX. I kept this conversation between me and the TOS customer support representative. It was a very interesting trading day because what happened was this: I had a $1.20 trailing on JBX and I know the trailing stop of $1.20 was still very far away, but my JBX option was sold as soon as the market opened. Feeling somewhat irritated, I contacted my broker through live support with an intention to rant because I didn’t think I could get back my stock option… but it turned out I could. =)

November Option Trades 2006

I’m baaccckkk!!! My doubled capital is back, thanks to SCSS which gapped down and gave me a 191% return on the trade alone! 6 trades and only 2 lost this time.

I’m kicking myself for selling ASH on the same day at 10% profit, what’s worse was that it wasn’t an exit signal according to the rules. If I had held on, it’d have given me an almost 100% return like TXT did. Check out the charts of ASH and note the candles from 1st till 14th November 2006. Sigh.

Balance after exit trades made in November: $4,913.52 (+41.84%). Click “read more” to see my trades.