It has been 12 days since my last post and this is how things are working out for me. For starters, my iShares Silver Trust ETF (SLV) $18 call option that I sold to open has been climbing and holding in the money. At the current rate, it could break through the next strike price. Fine by me since I want to collect the capital gains on my SLV position. As a quick note, EV Energy Partners (EVEP) did dip below $32.50 but has been climbing up ever since. The current close is $33.62.
In my last post I mentioned a concern that Capital Product Partners, LP (CPLP) could base around $8 for about month before going back up if it didn't continue down, and that my position would be eroded. I am sorry to have to say, it looks like that may very well be the case. I am not quite ready to dive out yet, but I will have to eventually.
And lastly, I think I am making more bad mistakes, but I can't seem to help myself. Citigroup Inc (C) has been ranging between $3.50 and $4.25 for a few months. And for some reason I keep expecting growth out of it based solely on the fact that it is technically oversold both on the daily and weekly charts. It would have been wiser for me to by the stock and sell the $4 calls against it month after month. For that additional bad mistake I started this paragraph of with, today I bought 3 of the December 2010 $2 call options. Woe is me if I don't see a momentary bounce in C for a week or two. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Tuesday, August 31, 2010
Thursday, August 19, 2010
Portfolio Update: Call Option Sold To Open
It has been a little over a week since my last post. Since then I have made a few adjustments to my stops and desired entries. My reason for posting is that one of them was triggered today. I sold-to-open a September 2010 $18 call option against my shares of the iShares Silver Trust ETF (SLV). The premium for that sale was about $45.40 after commission. That is a nice percentage gain Although it could have been better had I sold it a couple weeks ago instead of trying to sell the August 2010 $19 call option. The other end of this trade is that if I get called on it next month, I will also collect my capital gains on the underlying shares.
The stock EV Energy Partners, LP (EVEP) dived below the secondary trend line I mentioned in the forecast I made in my last post and is currently declining lower at a very slow pace. EVEP closed today at $33.23. I still believe it will continue to decline into the $32.50 to $30 range before turning back up.
The put option I bought-to-open against Capital Product Partners, LP (CPLP) hasn't been moving favorably for me. My current position went into the hole $20 the day after I entered it and it hasn't gone anywhere since then. The CPLP stock hasn't been moving much for the past week. It looks similar to EVEP in that it dived down below one trend line, but it seems to be dancing just above a much shallower secondary trend line that I expected it to break already. The weekly and monthly Stochastic and MACD indicators suggest that it is over-bought and should not be going back up much higher in the immediate future. However, the daily indicators are in the over-sold ranges. This suggests to me that if it doesn't break below this secondary trend line soon, CPLP will be basing at the current $8 level for about a month, eroding my position.
I haven't mentioned this position for some time, and it is about time I did. Maybe I will finally get it through my thick skull to let a looser go. It really does look like I again made a very bad move. Citigroup, Inc stock (C) hasn't been doing bad nor good for the past couple of months since it declined back in May of this year. I fully expected it to turn up a lot more a lot sooner. Unfortunately, instead of buying stock and selling call options against C, I bought 5 calls in expectation of better performance now that it has restructured itself and spinning off Primerica Inc (PRI). Oh well, wishful thinking. I am already more than 60% in the whole. My current forecast of C for the next four months until the expiration of the options is to almost break even at best. I'm so disappointed in myself. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
The stock EV Energy Partners, LP (EVEP) dived below the secondary trend line I mentioned in the forecast I made in my last post and is currently declining lower at a very slow pace. EVEP closed today at $33.23. I still believe it will continue to decline into the $32.50 to $30 range before turning back up.
The put option I bought-to-open against Capital Product Partners, LP (CPLP) hasn't been moving favorably for me. My current position went into the hole $20 the day after I entered it and it hasn't gone anywhere since then. The CPLP stock hasn't been moving much for the past week. It looks similar to EVEP in that it dived down below one trend line, but it seems to be dancing just above a much shallower secondary trend line that I expected it to break already. The weekly and monthly Stochastic and MACD indicators suggest that it is over-bought and should not be going back up much higher in the immediate future. However, the daily indicators are in the over-sold ranges. This suggests to me that if it doesn't break below this secondary trend line soon, CPLP will be basing at the current $8 level for about a month, eroding my position.
I haven't mentioned this position for some time, and it is about time I did. Maybe I will finally get it through my thick skull to let a looser go. It really does look like I again made a very bad move. Citigroup, Inc stock (C) hasn't been doing bad nor good for the past couple of months since it declined back in May of this year. I fully expected it to turn up a lot more a lot sooner. Unfortunately, instead of buying stock and selling call options against C, I bought 5 calls in expectation of better performance now that it has restructured itself and spinning off Primerica Inc (PRI). Oh well, wishful thinking. I am already more than 60% in the whole. My current forecast of C for the next four months until the expiration of the options is to almost break even at best. I'm so disappointed in myself. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Tuesday, August 10, 2010
Portfolio Update
In my last post I had spoke of putting in an order to sell a Call option against my position of the iShares Silver Trust ETF (SLV). That order never got executed because the value of my shares never went high enough to trigger the contingency. That is fine as I am just moving it over to the next months Call option.
Since then, however, I have been manually updating a stop order against my shares of EV Energy Partners, LP (EVEP). Today that stop was triggered and I captured a profit of a little under 32% including cost of commissions and fees. It is m opinion that EVEP will be pulling back between $32.50 and $30 before it . This particular opinion depends on it actually closing below a secondary trend line with an upcoming intersection of $34.52. I have this contingency in my opinion because for this triggered stop I used low of the of the "out of the ordinary" sell off and rebound in the stock back on the 6th of May as the starting point of the trend. In all honesty, I probably shouldn't have as such behavior is an anomaly and the low of May 21st was a lot more reasonable. However, profit is profit.
In addition to this profit taking, I am also taking the opinion that Capital Product Partners, LP (CPLP) is over bought again and will be repeating it's basing behavior. This time I believe it will base down around the $7 dollar range. As a result of my opinion I purchased the CPLP December 2010 $7.50 Put option. I choose this option because the December 2010 $10 Put is too expensive for my current cleared capital, the September 2010 $10 Put is to close in time, and none of the current $10 Call options will give me a satisfactory premium without risking the loss of the stock below my cost basis. I am also setting it up to Sell-To-Close (STC) after the underling stock drops below $7.50 I may be "leaving some money on the table", but I rather not be greedy. After all, there is always another trade to be made. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Since then, however, I have been manually updating a stop order against my shares of EV Energy Partners, LP (EVEP). Today that stop was triggered and I captured a profit of a little under 32% including cost of commissions and fees. It is m opinion that EVEP will be pulling back between $32.50 and $30 before it . This particular opinion depends on it actually closing below a secondary trend line with an upcoming intersection of $34.52. I have this contingency in my opinion because for this triggered stop I used low of the of the "out of the ordinary" sell off and rebound in the stock back on the 6th of May as the starting point of the trend. In all honesty, I probably shouldn't have as such behavior is an anomaly and the low of May 21st was a lot more reasonable. However, profit is profit.
In addition to this profit taking, I am also taking the opinion that Capital Product Partners, LP (CPLP) is over bought again and will be repeating it's basing behavior. This time I believe it will base down around the $7 dollar range. As a result of my opinion I purchased the CPLP December 2010 $7.50 Put option. I choose this option because the December 2010 $10 Put is too expensive for my current cleared capital, the September 2010 $10 Put is to close in time, and none of the current $10 Call options will give me a satisfactory premium without risking the loss of the stock below my cost basis. I am also setting it up to Sell-To-Close (STC) after the underling stock drops below $7.50 I may be "leaving some money on the table", but I rather not be greedy. After all, there is always another trade to be made. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
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