I am so happy the week is over. I traded my butt off. Net effect, I would have been about $3000 richer if I did nothing.
I am glad the week is complete. I have a few nice positions left to the short side. And a number of OK sideways trades still on. I would like to see a early week selloff. A panic drop to to the bottom of the trend channel would be nice. Last Friday there was talk of paradise ahead, and all the way up to the fed announcement Roses abounded. Now, Recession. Hilarious really. I think we will come out of this in an uptrending market.
I was headfaked twice, darn it. This time of year not my best trading window. I have several methods which work particularly well from May through Oct. This time of the year, I must improve some of my other strategies. I just purchased Option Gear to work in conjunction with my Profit Source program. Although I don’t normally trade directionally, without the use of Profit Source I simply didn’t make much money trading. With it, I feel like I have a fighting chance an can averages about a 3-5%/month acct growth. I also use Optionetics Platinum and find that to be an excellent web based analysis tool. My understanding is that Option Gear has the great features of Platinum, but integrates even better with Profit Source and operates with the same data feed.
Thursday afterrnoon in Breckenridge
Anyway, I am looking to improve my trading, even though I will not be in front of my computer for 3 of 5 trading days. No biggie. I am sort of looking forward to get back to teaching skiing this winter. I worked my butt off trading this summer and fall and did quite well. I was up about 700+% on my main acct, and 200+% in my IRAs since May vs up 10% by Red Option who manages my wife’s acct. I will probably take back my wife’s acct next summer. I plan on improving my game next year. I am getting a trading coach next spring. All tip money from the winter is going to the coaching. My desire is to greatly improve my Delta Neutral trading (Straddles, Strangles, Backratio spreads). In being a student and coach since the age of 18, I know that being a purely self-taught learner is one of the greatest mistakes one can make. Why not profit from the experience of others.
Indeed this week was busy, here were thursday and friday’s trades:
DSL – 1 unit of Feb 30p-20p spread. I bought this in a Wave 4 sell @ 33.01 for 2.75.
HRB- jan/Dec 20p. Sold off the entire position 6 units .41,.42, .45, on friday for .32. I originally purchased this spread for .17 to .20, 28 days ago. There is too much turmoil is this stock right now. It is whipping around due to it’s loan division. Enough.
AZO – 1 unit Jan 120-110p with the underlying @ 122.01 for 2.65. Sold for $3@ 120.84, then repurchased Jan 115-105p for 1.75 with underlying @ 121.17. Friday AZO closed at it’s low 120.07. My initial price target is 117.25.
DRQ – 1 unit Mar 55-65c for 3.75 @ 55.77.
USB – Sold 1 unit of Dec/Jan 32.5c for .47. I have 3 units remaining. I will probably be out of these by wednesday. With the underlying @ 32.68. They are sitting pretty over this weekend.
ZMH – 1 unit Mar 65-60 @ 67.82 for 1.45
IWM – Sold 2 units Jan 79/75p for 2.12 @ 75.76. I purchased these around 1.75 before and after the fed announcement. They were positive theta, so I was thinking about holding them. Buy my profit projections were met. And after I sold them the IWM rose to 76.75, before plunging at the end of the day.
SBUX – Sold 2 units of dec/ja 22.5p for .35.@ 21.51. I don’t like the negative catalysts driving this stock. And now that it ITM, I don’t see further need to own it. I bought this for .15 two weeks ago.
ADCT – positive earnings drove this stock up. I sold 2 of my 8 units of the Jan/Feb15p calendar hedge for .15 (the price I paid), I still have 8 units of the 17.5p and 17.5c calendars. Underlying 18.30
Latest MA Commercial
Bonehead play of the day: MOS credit spread. Sold 2units of the Dec 80-75p for .50 on a break out. The stock failed, I was squeezed out and had to buy back for .95. Note to self, don’t buy credit spreads in the morning. Better yet, don’t buy ’em, the risk to reward is for retards. Risk 1 to lose 9… stupid.
UNG – 100 sh for 34.72. I will scale in as the price breaks it’s downtrend. The spot price for Nat Gas is at a significant low. It is resting on the 50 and 200 day MA, as well as a 50% retracement. And with the big winter storm rolling across the country, I think the NY Merc traders should feel the chill by monday. It is time to warm up the house using Nat Gas. I also agree with Cramer… 2008, year of Nat Gas.
PPG – 1 unit of 65/60p for .75 with underlying @ 70.43. Stop is @ 71.05.
COH – Pyramided 1 unit May 35/27.5p position to my existing 2 units upon the initial break of the trendline. Bought this unit on the COH downtrend line @ 34.42. The original positions are up 28%. I bought this on a Wave 4 sell signal from profit source.