Portfolio Update

This post is a portfolio update with some commentary. To begin, NG traded lower bringing my Covered Call closer to exiting contention for assignment, but that is still 24 days out and anything can happen. As I stated in the previous post I put in Put orders for FTP and ETP. On the first day after posting that the FPL order executed and I am currently showing 20% profit. I still suspect that it will continue to move down from here. ETP is another story.

The Put order for ETP expired on the first day because ETP moved slightly up from the previous days high. However, it's movement was small and actually closed lower than it's open. For that reason, I resubmitted the order with a tighter BTO (Buy-To-Open) range. This decision to tighten the BTO range is based on two reasons. The first is that the market-maker made the asking price cheaper. The second is speculation that despite the closing price being higher, the small movement is an indication to me that there are not enough buyers to prevent it from heading South. Something additional that I noticed is that on this same day that my BTO executed, the stock created a bearish doji whose body is within the body of another bearish candle. If it had been a bullish doji candle I would be second guessing myself just a little. However, a bearish candle within another bearish candle is not indicative of anything significant that I know of.

As is current protocol, both my positions have in place a STC (Sell-To-Close) Stop in the event that I am wrong. Unfortunately, for ETP I had to go against my decision to set tighter stops because of the market-makers decision to set the current bid and ask price lower than the closing price. In order to prevent premature execution of the order, I had to set my stop 5 cents lower than the bid. That puts me right at my previous acceptable-loss percentage. Not ideal but we do what we have to do to give the technical analysis the opportunity to work. That is my opinion, you can take it or leave it.

Disclaimer: See bottom of page.