I had an order in for the purchase of a Call option on Capital Product Partners, L.P. in the event that it broke above 9$. Today it did that, but only momentarily. As a result I am in the CPLP Sept10 7.50 Call option at a little more than the current asking price. I might have made a mistake getting in so early, but I believe that I bought an option with an expiration far enough out that I should see the break out to the upside in the near future and be able to profit off of that move. I believe that it should make it to 9.50 or 10$. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Wednesday, April 21, 2010
Monday, April 19, 2010
Portfolio Update
To start off this week I am selling another Call against my position in the iShares Silver Trust ETF. This Call is well out of the money at the $19 strike price, and as a result the premium after commissions is meager. There is no way for me to make money off of it by buying it back at any level. This will require that I hold it all the way through expiration.
The reason I chose the $19 strike price is simple. I have 20 shares of my position over $18. If the ETF were to close over $19 on option expiration, I would be automatically assigned the responsibility to relinquish my position, but at the same time, I profit off of all of the shares individually, not on an average. There are those that think Silver should be over $20, and I am one of them, but it has been muddling around below $19 for quite some time. I am willing to risk any additional profit by having it called away from me at $19, because I also believe that even if it does close above the strike price, it will eventually collapse back to around $17.
I would like to sell a call against Capital Product Partners, LP but it looks like it will be pulling off another one of it's breakouts again. For that reason I am preparing to purchase a Call option for a short hold. I don't have much free cash to invest, so I will be doing a lot of technical analysis in the coming weeks. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
The reason I chose the $19 strike price is simple. I have 20 shares of my position over $18. If the ETF were to close over $19 on option expiration, I would be automatically assigned the responsibility to relinquish my position, but at the same time, I profit off of all of the shares individually, not on an average. There are those that think Silver should be over $20, and I am one of them, but it has been muddling around below $19 for quite some time. I am willing to risk any additional profit by having it called away from me at $19, because I also believe that even if it does close above the strike price, it will eventually collapse back to around $17.
I would like to sell a call against Capital Product Partners, LP but it looks like it will be pulling off another one of it's breakouts again. For that reason I am preparing to purchase a Call option for a short hold. I don't have much free cash to invest, so I will be doing a lot of technical analysis in the coming weeks. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Saturday, April 17, 2010
It's Official
Well I have confirmed it. The Call option I had against my iShares Silver Trust position is no longer listed in my TradeKing account, but the shares are still there. With this opportunity, I will be selling against them again but this time at the $19 strike price. This way I profit off of all of the shares if they get called away from me by the next option expiration date.
As a side note. I had to recalculate my paper trade log as I had a feeling that I was being facetious with the numbers. In order for me to have made all of the trades that I did I would have needed to start off with a much larger account balance. The truth is that I only made 16% profit. Still not bad, but not nearly as glorious as my previous balance. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
As a side note. I had to recalculate my paper trade log as I had a feeling that I was being facetious with the numbers. In order for me to have made all of the trades that I did I would have needed to start off with a much larger account balance. The truth is that I only made 16% profit. Still not bad, but not nearly as glorious as my previous balance. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Friday, April 16, 2010
My Jaw Dropped Today
Today news about Goldman Sachs (GS or affectionately called Goldman Sucks by some media personalities) had some very critical accusations posted about them in the news. As a result of the news, their stock took an immense beating today, and as the largest brokerage entity in the market, dragged the markets down with them.
Now that isn't what caused my jaw to drop today. Oh, no. What caused my jaw to drop was how it affected my portfolio to behave in the opposite way that I expected. It is generally assumed from history that as the stock market pulls back the price of the metals will go up. But because of the way GS is invested in the market and the details of the news that came out about them the metals actually pulled back with the market. So what does this mean for me? I am not sure yet, but for one thing I am assuming by the closing price of the iShares Silver Trust ETF (SLV, $17.41) I may not be called out of my position by the $18 strike price option I had sold against it a couple months ago. I should know by tomorrow if this is official, as the assignment of options is done over night after expiration.
The second thing that caused my jaw to drop wasn't in my TradeKing (http://www.tradeking.com) portfolio but in my paper trading portfolio. As I mentioned in my blog post yesterday, I would sell my position of Inspire Pharmaceuticals, Inc. (ISPH) if it closed over $6.90 and close my paper trading. Strangely enough today, on news that they received approval to market their dry eye treatment in Japan, ISPH moved up 97 cents for a close of $6.93. And as a man of my word, I am selling off my position and closing out my paper trades.
The other thing I said is that if it started to go up, I would buy a call option to hedge against my losses in the stock. But with this move, there is no point in buy the option since I am breaking above even. In fact, including the two covered calls I sold against my position over the almost three month hold of the stock, I made a total profit of $176 on a $1360 investment (12.9%, not deducting commissions). Not to bad.
After going over my paper trading log, this is what I see. Out of 32 trades, I was right or patient enough 22 times for a profit of $1264, and wrong or impatient 10 times for a loss of $242. This leaves me with a net profit of $1022 (not deducting commissions). If I actually had the cash I pretended to have, I would have made a turn around of about 50%. Not bad at all. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Now that isn't what caused my jaw to drop today. Oh, no. What caused my jaw to drop was how it affected my portfolio to behave in the opposite way that I expected. It is generally assumed from history that as the stock market pulls back the price of the metals will go up. But because of the way GS is invested in the market and the details of the news that came out about them the metals actually pulled back with the market. So what does this mean for me? I am not sure yet, but for one thing I am assuming by the closing price of the iShares Silver Trust ETF (SLV, $17.41) I may not be called out of my position by the $18 strike price option I had sold against it a couple months ago. I should know by tomorrow if this is official, as the assignment of options is done over night after expiration.
The second thing that caused my jaw to drop wasn't in my TradeKing (http://www.tradeking.com) portfolio but in my paper trading portfolio. As I mentioned in my blog post yesterday, I would sell my position of Inspire Pharmaceuticals, Inc. (ISPH) if it closed over $6.90 and close my paper trading. Strangely enough today, on news that they received approval to market their dry eye treatment in Japan, ISPH moved up 97 cents for a close of $6.93. And as a man of my word, I am selling off my position and closing out my paper trades.
The other thing I said is that if it started to go up, I would buy a call option to hedge against my losses in the stock. But with this move, there is no point in buy the option since I am breaking above even. In fact, including the two covered calls I sold against my position over the almost three month hold of the stock, I made a total profit of $176 on a $1360 investment (12.9%, not deducting commissions). Not to bad.
After going over my paper trading log, this is what I see. Out of 32 trades, I was right or patient enough 22 times for a profit of $1264, and wrong or impatient 10 times for a loss of $242. This leaves me with a net profit of $1022 (not deducting commissions). If I actually had the cash I pretended to have, I would have made a turn around of about 50%. Not bad at all. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Thursday, April 15, 2010
Portfolio and Paper Trade Update
It has been a week since my last post and nothing has changed in my portfolio until now. Friday is option expiration and I have one outstanding Sold-To-Open (STO) Call option out on my iShares Silver Trust ETF position (SLV). The Call option is for the $18 strike price and the ETF is at $18.07 at the close of today's trading day with an asking price that is higher than the current price and for a larger volume than the bid price. It certainly looks like I will be called out of my position by end of day on Friday.
It has been a really good run on the ETF and I am averaged down from my initial 10 share purchase so that I will make a profit on the transaction of about 6%, not including the premium I sold the option for. It is my opinion that SLV will probably pull back after option expiration so I will just have to wait and see if it drops and holds below $17.50 until the funds clear again. Hurray for me that it isn't a wash-sale if you make a profit.
I still have paper trades in effect and I am making a change to one of them today. Sprint (S) has done very well but there is only one month left until the expiration of the Call option that I "bought" on it, this means that unless it goes up further, time will decay it's value until all that is left is intrinsic value, or the amount between the strike price and the current stock value. Unfortunately even that isn't guaranteed. Since there is only 5 cents of additional time value left, I am going to take my "profit". It is absolutely possible that S could go up another 20 to 30 cents or more, but I don't have to take the risk.
After these two changes this week I am left with my stock positions of Capital Product Partners, LP (CPLP); EV Energy Partners, LP (EVEP); my Bought-To-Open (BTO) Call options on Brocade Communications Sys Inc. (BRCD); and my paper trade on Inspire Pharmaceuticals, Inc. (ISPH). ISPH did the head-and-shoulders chart pattern I expected but stopped dropping after passing the neck of the pattern. It looks like it is consolidating for another move up. If it does move up above the downward trending resistance line I have charted with a current price of $6.25, I may buy a Call option on the stock to attempt to hedge against the losses in the stock. And if the stock closes above $6.90, I will sell the stock to close off all of my paper trading. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
It has been a really good run on the ETF and I am averaged down from my initial 10 share purchase so that I will make a profit on the transaction of about 6%, not including the premium I sold the option for. It is my opinion that SLV will probably pull back after option expiration so I will just have to wait and see if it drops and holds below $17.50 until the funds clear again. Hurray for me that it isn't a wash-sale if you make a profit.
I still have paper trades in effect and I am making a change to one of them today. Sprint (S) has done very well but there is only one month left until the expiration of the Call option that I "bought" on it, this means that unless it goes up further, time will decay it's value until all that is left is intrinsic value, or the amount between the strike price and the current stock value. Unfortunately even that isn't guaranteed. Since there is only 5 cents of additional time value left, I am going to take my "profit". It is absolutely possible that S could go up another 20 to 30 cents or more, but I don't have to take the risk.
After these two changes this week I am left with my stock positions of Capital Product Partners, LP (CPLP); EV Energy Partners, LP (EVEP); my Bought-To-Open (BTO) Call options on Brocade Communications Sys Inc. (BRCD); and my paper trade on Inspire Pharmaceuticals, Inc. (ISPH). ISPH did the head-and-shoulders chart pattern I expected but stopped dropping after passing the neck of the pattern. It looks like it is consolidating for another move up. If it does move up above the downward trending resistance line I have charted with a current price of $6.25, I may buy a Call option on the stock to attempt to hedge against the losses in the stock. And if the stock closes above $6.90, I will sell the stock to close off all of my paper trading. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Thursday, April 8, 2010
Portfolio Update
On April 2nd, I posted that I would be resetting my order to purchase Call Options of BRCD that would be set to expire in October 2010 instead of this July. I did so, and on April 6th the contingency was triggered, but my trade order did not get executed. It actually was cancelled due to a suspected user error, my own. I apparently set the limit order way to high; and as a precaution, my online broker, TradeKing (www.tradeking.com) cancelled it for my own good and sent me an email notifying me of the situation. Wasn't that nice of them?
Anyway, I resubmitted it that night, with a reasonable limit price, and the following day, April 7th, the contingency was triggered again. As of now I am the owner of 3 BRCD OCT 10 $6 Calls. I have a minimum target of $7 before July.
In other news, the ETF SLV has been moving up in bursts with small movements throughout the day. In the current week, though, the price movement has been narrow but without the bursts. It may be leveling off and calling it an end of a cycle, but at the same time it is dangerously close to $18. If it closes above the $18 strike price, I will probably have to relinquish my shares. The result will only be about a 5% profit after commissions, but the good news is that I also get to keep the premium I sold the Call option for and I free up all of that capital for more trades. There are only 9 days left, so I will just sit and wait.
As a quick note, I have been monitoring the chart of ISPH for a few weeks now. Since I am only paper trading it, there is no big concern for me. The thing about ISPH is that it looks like it has created a head-and-shoulders chart pattern and may soon take a dive. I suspect that if it does, it will drop to about $5. If there was more capital in my paper trading scenario I would buy more than just a few Put options and capitalize on the small but very likely move. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Anyway, I resubmitted it that night, with a reasonable limit price, and the following day, April 7th, the contingency was triggered again. As of now I am the owner of 3 BRCD OCT 10 $6 Calls. I have a minimum target of $7 before July.
In other news, the ETF SLV has been moving up in bursts with small movements throughout the day. In the current week, though, the price movement has been narrow but without the bursts. It may be leveling off and calling it an end of a cycle, but at the same time it is dangerously close to $18. If it closes above the $18 strike price, I will probably have to relinquish my shares. The result will only be about a 5% profit after commissions, but the good news is that I also get to keep the premium I sold the Call option for and I free up all of that capital for more trades. There are only 9 days left, so I will just sit and wait.
As a quick note, I have been monitoring the chart of ISPH for a few weeks now. Since I am only paper trading it, there is no big concern for me. The thing about ISPH is that it looks like it has created a head-and-shoulders chart pattern and may soon take a dive. I suspect that if it does, it will drop to about $5. If there was more capital in my paper trading scenario I would buy more than just a few Put options and capitalize on the small but very likely move. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Friday, April 2, 2010
Option Pick Adjustment
There is nothing really new to report in my portfolio. CPLP and EVEP are both maintaining their value. However, SLV is gaining value at a pace faster than hoped for and looks like I may have my shares called away from me by this next expiration. I will just have to wait and see if I will be able to buy them back after the expiration date after next.
My current open order to buy 2 BQB July 2010 $6 Call options when BRCD breaks above $6 is loosing time to be executed and with that also becoming much cheaper. Along with these options becoming cheaper are other options with more time. Because of that, I am cancelling the current open order and setting an order to buy 2 BQB October 2010 $6 Call options when BRCD breaks above $6. This will cost me a bit more, but it will give me a few more months to hold as the stock goes up in value. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
My current open order to buy 2 BQB July 2010 $6 Call options when BRCD breaks above $6 is loosing time to be executed and with that also becoming much cheaper. Along with these options becoming cheaper are other options with more time. Because of that, I am cancelling the current open order and setting an order to buy 2 BQB October 2010 $6 Call options when BRCD breaks above $6. This will cost me a bit more, but it will give me a few more months to hold as the stock goes up in value. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
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