Since my last portfolio update, I made a few trades. But in addition to that I followed through with adding funds to my trading account. In fact, I set up a weekly transfer of funds into my trading account. I have this as part of my budget now.
The first thing I have to report about my trades is that the call option I STO against my position in DWA expired worthless. That means that I get to keep the $34.37 premium I received. I am currently planning my next move with DWA.
My next trade was to BTO a put option against RIMM for Nov 19 2011 at the $23 strike price. This trade was STC 6 trading days later and profited $10.75, or ~5%.
Two days later I BTO two put options against RIMM for Oct 22 2011 at the $20 strike price. This trade was STC 3 trading days later and profited $49.39, or ~23%.
I currently have 4 open or pending orders, 3 open stock positions, and 1 open option position. My plan is to wait to see if my 1 open option position expires worthless or has me put into CIM for another 100 shares at $2.50 a share. My 3 open stock positions are all in the red still, but there is past performance that suggest the possibility for eventual turn around. My 4 open or pending orders are for a position of call options on AAPL, a position of put options on RIMM, a position of call options on CIM, and a position of a call option on CPLP. I am bullish on AAPL, bearish on RIMM, bullish on CIM, and Bullish on CPLP.
That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple, Inc
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation, Inc.
RIMM - Research In Motion, LTD
STC - sell-to-close / sold-to-closeSTO - sell-to-open / sold-to-open
Showing posts with label covered calls. Show all posts
Showing posts with label covered calls. Show all posts
Tuesday, October 11, 2011
Monday, August 8, 2011
Portfolio Update
Last week was an absolutely terrible week for my portfolio, and this week isn't looking any better. Being as heavily invested in the market as I am, my portfolio is taking a serious hit. My direct equity positions are now down between 27 and 51%. The saving grace to my portfolio is that I made a few trending option plays that are hedging my losses.
Since May 2011, I have had a 30$ Call option against my DWA shares set to expire in September 2011. On the Friday of last week, I bought 3 17.50$ Put options for DWA and I am thankful that I did. With my equity position down over 37%, the Put options are shaving about 2% from that and will exponentially shave more points off of that percentage as the market and DWA gets hammered. It is just a matter of getting out at the right time since they will expire in December 2011.
Additionally, today I had a 2.50$ Put option sold against my cash for an additional position in CIM. The option is set to expire in December 2011 and is only slightly below the current market value of 2.85$. With the coming weeks I will be allocating more cash to my trading account in preparation for purchasing shares in some really good companies that are being beaten down along with everything else. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
DWA - Dreamworks Animation SKG
Since May 2011, I have had a 30$ Call option against my DWA shares set to expire in September 2011. On the Friday of last week, I bought 3 17.50$ Put options for DWA and I am thankful that I did. With my equity position down over 37%, the Put options are shaving about 2% from that and will exponentially shave more points off of that percentage as the market and DWA gets hammered. It is just a matter of getting out at the right time since they will expire in December 2011.
Additionally, today I had a 2.50$ Put option sold against my cash for an additional position in CIM. The option is set to expire in December 2011 and is only slightly below the current market value of 2.85$. With the coming weeks I will be allocating more cash to my trading account in preparation for purchasing shares in some really good companies that are being beaten down along with everything else. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
DWA - Dreamworks Animation SKG
Sunday, July 17, 2011
Portfolio Update
It has been almost a full month since my last post and option expiration has come and gone. Nothing has changed in my portfolio other than the value of my positions. Currently all but one of my positions is running at a negative capital value. This one exception is a covered call I have on my shares of DWA.
The idea here is to make money off of my losers when I really don't think they should not be losers. For instance, DWA has had a lot of really good movies come out this summer. However, that may have been their down fall as the crowds at the theaters have been really light. Most likely because the economy is still really weak and people are even more scared of spending money than I though they would be during the summer.
My other two positions, CIM and CPLP are also currently running at a negative. CIM has recently put in a new 52-week low of 3.18$, and closed this week at 3.25$. Approximately a 20% decline from the 4$ strike price of two of my previous option plays put me in. My orders to sell calls against my shares has yet to be executed so I currently have no hedge in place at the moment. I am curious to see how low it will go, and out of speculation created a put option at the 2.50$ strike price set to expire December 2011.
The situation with my shares of CPLP is relatively the same. CPLP has hit a new 52-week low of 7.86$, but has recovered some the value back since the beginning of last month. However, it is still far from the 10$ strike price of one of my previous option plays put me in. My order to sell a call against my shares has yet to be executed so I currently have no hedge in place at the moment, either.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
The idea here is to make money off of my losers when I really don't think they should not be losers. For instance, DWA has had a lot of really good movies come out this summer. However, that may have been their down fall as the crowds at the theaters have been really light. Most likely because the economy is still really weak and people are even more scared of spending money than I though they would be during the summer.
My other two positions, CIM and CPLP are also currently running at a negative. CIM has recently put in a new 52-week low of 3.18$, and closed this week at 3.25$. Approximately a 20% decline from the 4$ strike price of two of my previous option plays put me in. My orders to sell calls against my shares has yet to be executed so I currently have no hedge in place at the moment. I am curious to see how low it will go, and out of speculation created a put option at the 2.50$ strike price set to expire December 2011.
The situation with my shares of CPLP is relatively the same. CPLP has hit a new 52-week low of 7.86$, but has recovered some the value back since the beginning of last month. However, it is still far from the 10$ strike price of one of my previous option plays put me in. My order to sell a call against my shares has yet to be executed so I currently have no hedge in place at the moment, either.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
Sunday, June 19, 2011
Portfolio Update: Put Exercised
As of this post, the weekend past was option expiration and my CIM put options for the 4$ strike was exercised against my cash. This put's me in at a 55 cent per share loss, less that cost of the premium that I collected for the option. Although this is an initial negative, I am satisfied with the result. The result being that my total position is now 400 shares and I can adjust my option order for the 4.50$ December calls from 1 contract to 4 contracts. I will also be increasing my limit for the STO order to 25 cents per contract share which is a net of about 92$ if it gets purchased. Not to mention I get to hold onto an expected 56$ after the next dividend payout between now and December. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
STO - sell-to-open / sold-to-open
CIM - Chimera Investment Corp.
STO - sell-to-open / sold-to-open
Friday, May 13, 2011
Putting Myself Into A Position
I am really liking the idea of buying low and selling high. I even like it more with the extra income that comes along with selling options against my cash, which then puts me in or calls me out of a position.
On Thursday I STO three options against my cash for the obligation to buy 300 shares of CIM in the event that it does not break back above 4$ a share before the June expiration date. I think this is a fairly good deal seeing as the company pays out a hefty dividend and shows earnings that can actually support it. As a matter of fact I currently own 100 shares because I did a single order over a month ago.
It is my expectation that I will probably not get put into the 300 share position of CIM since there is so much time between now and the June expiration for those options. But, as always, time will tell. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
STO - sell-to-open/sold-to-open
On Thursday I STO three options against my cash for the obligation to buy 300 shares of CIM in the event that it does not break back above 4$ a share before the June expiration date. I think this is a fairly good deal seeing as the company pays out a hefty dividend and shows earnings that can actually support it. As a matter of fact I currently own 100 shares because I did a single order over a month ago.
It is my expectation that I will probably not get put into the 300 share position of CIM since there is so much time between now and the June expiration for those options. But, as always, time will tell. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
STO - sell-to-open/sold-to-open
Wednesday, March 30, 2011
Portfolio Update and Option Pick
Since my last post, I have STO two new positions. The first is a Call against my CPLP position. The second is a Put against cash for a stock I have been watching for a while, CIM.
When I placed the order to STO a Call option against my shares of CPLP, I was strongly influenced by the direction of the momentum indicators on a weekly interval. It was my belief that investors were taking their profits, and the stock would pull back. Unfortunately the pull-back I was expecting was short lived, and it rocketed up to my strike price and muscled through. Because all stocks go up and down, even more so for dividend stocks, I will allow the Call option to remain open against my shares and STO a put option to get back into the stock at the $10 strike price in the even that I get exercised out of my position.
I had placed the order to get into CIM weeks before last months option expiration with little expectation that it would get executed. I wanted my cash doing something other than just sitting in my trade account. So placing an order to secure an option seemed a responsible action until I found something else better. CIM has a relatively wide range that is swings in for it's cost and the dividend is a nice amount to receive if I get exercised into the stock.
I am still waiting to see what will happen with my open order to STO a Call against my DWA shares. Recently DWA has been making head-way towards the $30 strike price I got exercised into it. If things continue as they are, I should be able to get my desired premium for this option cycle.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
STO - sold-to-open/sell-to-open
When I placed the order to STO a Call option against my shares of CPLP, I was strongly influenced by the direction of the momentum indicators on a weekly interval. It was my belief that investors were taking their profits, and the stock would pull back. Unfortunately the pull-back I was expecting was short lived, and it rocketed up to my strike price and muscled through. Because all stocks go up and down, even more so for dividend stocks, I will allow the Call option to remain open against my shares and STO a put option to get back into the stock at the $10 strike price in the even that I get exercised out of my position.
I had placed the order to get into CIM weeks before last months option expiration with little expectation that it would get executed. I wanted my cash doing something other than just sitting in my trade account. So placing an order to secure an option seemed a responsible action until I found something else better. CIM has a relatively wide range that is swings in for it's cost and the dividend is a nice amount to receive if I get exercised into the stock.
I am still waiting to see what will happen with my open order to STO a Call against my DWA shares. Recently DWA has been making head-way towards the $30 strike price I got exercised into it. If things continue as they are, I should be able to get my desired premium for this option cycle.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
STO - sold-to-open/sell-to-open
Sunday, March 20, 2011
Portfolio Update
Another month has passed and I am still in my current positions. This I find to be a success, with a bit of unexpected annoyance. I truly believed DWA would have gone up in the passed month, resulting in me being called out of my position. However, it has continued to slide lower and brought down the value of my position. The good news is that I am free to sell another option against it. Sadly though, at a lower premium than I would have liked. I still believe it to be a strong company with a lot of upside potential, although it is being depressed by the economic situation hindering the usage of an individuals discretionary funds for recreation purposes.
On the other hand, CPLP has maintained a relatively high evaluation these passed weeks in response to the Egypt and Lybia news. Despite the news causing it to hold this relatively high evaluation, it did not breach and hold above the $10 strike price of the option I sold against my position. As a result, that option expired worthless this weekend, freeing me to sell against my position again.
I'm looking to find another stock I can sell a Put option against my available cash. I want this stock to have a dividend that I can collect in the event that the option gets exercised and I have to purchase it. Currently all that I have on my watchlist have either suspended their dividend or require more cash than I have available. I will update in the event that I find one.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
On the other hand, CPLP has maintained a relatively high evaluation these passed weeks in response to the Egypt and Lybia news. Despite the news causing it to hold this relatively high evaluation, it did not breach and hold above the $10 strike price of the option I sold against my position. As a result, that option expired worthless this weekend, freeing me to sell against my position again.
I'm looking to find another stock I can sell a Put option against my available cash. I want this stock to have a dividend that I can collect in the event that the option gets exercised and I have to purchase it. Currently all that I have on my watchlist have either suspended their dividend or require more cash than I have available. I will update in the event that I find one.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
Tuesday, August 31, 2010
Portfolio Update: Trade Executed, Current Positions, Pending Orders.
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
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
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, July 13, 2010
Portfolio Update: Order Executed
Today the order I had to buy back the Call option against my iShares Silver Trust ETF shares was executed at the dirt cheap price of $0.01 per contract share plus $0.65 in commission. This results in a profit of $26.74. Definitely not a lot, but definitely better than bank interest.
To continue with the objective of trying to at least do better than bank interest, I have entered an order for a Contingency Trade. When the last trade price for SLV breaks over $18.62, I will Sell-To-Open a SLV19AUG10 Call against my SLV shares at a contract share price of $0.46. The goal is to increase my monthly profit margin from 1.57% to a solid 2% of my average cost basis. I believe this to be a fully obtainable goal. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
To continue with the objective of trying to at least do better than bank interest, I have entered an order for a Contingency Trade. When the last trade price for SLV breaks over $18.62, I will Sell-To-Open a SLV19AUG10 Call against my SLV shares at a contract share price of $0.46. The goal is to increase my monthly profit margin from 1.57% to a solid 2% of my average cost basis. I believe this to be a fully obtainable goal. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Monday, July 12, 2010
Portfolio Update: OTO 50% Executed
Yesterday I posted that I was setting up a One-Triggers-Other order with the Capital Product Partners, LP options. Today, the option I sold against my shares of CPLP was bought to close for a lose to me. That is the first half of the OTO. The second part of the OTO is the order to sell to open the CPLP10Aug10 Call option against my shares of CPLP. The order is to sell at a higher limit value of $0.70 per contract share. Less the cost of commission that is a premium of about $64.39. It is just a matter of waiting to see if it will gain enough value to sell at that price. Because of how far out it is, I will probably have to wait a few weeks. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Tuesday, July 6, 2010
Portfolio Update: Call Option Sold To Open
On the last day of the week, prior to the Independence Day weekend, I sold a $7.50July2010 Call option against my stock position of Capital Product Partners, LP (CPLP). The first day after the holiday was a slightly bullish day, but the option value did not close any higher. It is still my opinion that the stock will slide before the option expires. However, if it doesn't, I will be seeing a loss in the stock of about $26 which will be balanced out by all of the dividends I've earned so far and the premium I sold the option for. Although I see some bullish potential in CPLP, I am of the opinion that the market may not be done, pulling back just yet.
My current open orders are a Buy to Close order of the CPLP Call Option I sold, as mentioned above, a Buy to Close order of the iShares Silver Trust ETF (SLV) I have owned for a while, a Buy order of 10 more shares of EV Energy Partners, LP (EVEP) at price of $27.54 or less, and a Sell to Close order of my 5 contracts position of Citigroup Inc (C).
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
My current open orders are a Buy to Close order of the CPLP Call Option I sold, as mentioned above, a Buy to Close order of the iShares Silver Trust ETF (SLV) I have owned for a while, a Buy order of 10 more shares of EV Energy Partners, LP (EVEP) at price of $27.54 or less, and a Sell to Close order of my 5 contracts position of Citigroup Inc (C).
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Friday, June 25, 2010
Portfolio Update: Still Need To Work On Patience
As I am writing this I am dealing with a little bit of sellers remorse. A little over a month ago I wrote that I was comfortable with holding on to a call option I bought against Capital Product Partners, LLP (CPLP). In the week that just past, I was becoming exceedingly uncomfortable with my decision. As a result of the discomfort I progressively lowered my limit price to sell the option. In my mind I was attempting to capture as much of my remaining principle as I could. Anyway, today the sale of the call option finally triggered, but at a price less than 50% of the initial principle. The net result was a loss of a fraction over 60% ($91.21). What followed after the sale was that the option price continued to rise to a point at which I could have reduced my loss to about 45%. As I analyze the charts, I am seeing that I should be happy with what I was able to keep. However, I won't know for sure until September 17th.
In other news, I successfully sold a July2010 $19 Call option against my shares of the iShares Silver Trust ETF (SLV). My usual difficulty with selling against my shares is that in order for me to make money off of every share I have to sell an option at the next highest strike price from my most expensive share. I see this as a problem since SLV has a swing difference of up to $5, a 52-week high of $19.44 and I have 20 shares that were purchased above $18. This doesn't give me much room. I am actually looking forward to getting called out of my position of SLV so that I can cash in on my capital gains finally.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
In other news, I successfully sold a July2010 $19 Call option against my shares of the iShares Silver Trust ETF (SLV). My usual difficulty with selling against my shares is that in order for me to make money off of every share I have to sell an option at the next highest strike price from my most expensive share. I see this as a problem since SLV has a swing difference of up to $5, a 52-week high of $19.44 and I have 20 shares that were purchased above $18. This doesn't give me much room. I am actually looking forward to getting called out of my position of SLV so that I can cash in on my capital gains finally.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Tuesday, May 11, 2010
Portfolio Update, Orders Entered and Executed
I haven't posted since the 5th of May. Since then I have seen some promising behavior. To start, Capital Product Partners, LP (CPLP) has been stabilizing. The momentum indicators (Stochastic and MACD) are starting to turn back up, so I believe it shouldn't be going down any more in the near future. At the same time, it is looking uncertain that the Call option I bought on it will benefit from growth of the underlying stock as much as I initially estimated. As a result, I entered a Sell-To-Close (STC) order for what I initially thought was 50% profit. After seeing another order STC, that I will mention below, I am realizing that my math was a little bit off in reference to how commission affects the profit and will be making a slight adjustment.
My next portfolio position to mention is that of Brocade Communications Sys, Inc. (BRCD). The three Call options I purchased on it were hit pretty hard last week. However, I believed that my position value would go back up. As a result I made a STC order to capture as much profit on them as I could the next time it went up . Unfortunately, I didn't expect it to go up so quickly and so soon. As a result it executed the trigger price of the order today and I am now out of the position. This is also the position I was talking about earlier when discussing CPLP. As a result of a miscalculation of the commission cost, I am pocketing less than the intended 50% profit on the trade. I should have calculated 150% on the base cost I got in for and then added the round-trip commission costs on top of that value, and then divided that sum by the number of contract shares. That then would have given me the price to sell.
My next portfolio position to mention is that of the United States Natural Gas Fund ETF (UNG). The two Call options I purchased on it were also hit hard last week. I also believe that the value will go up eventually. As a result, I made a STC order to capture a reasonable 50% profit on the position. Unfortunately, the calculation for this order was also off, so I will be increasing it along with the one for CPLP.
Finally, the iShares Silver Trust ETF (SLV) peaked above the $19 strike price for the Call option I sold against my shares. As a result, I am less confident that I will be holding on to both the premium for the call option I sold as well as my shares of SLV. Although I am less confident, I am not concerned, because I will collect a nice profit on the transfer of the shares. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
My next portfolio position to mention is that of Brocade Communications Sys, Inc. (BRCD). The three Call options I purchased on it were hit pretty hard last week. However, I believed that my position value would go back up. As a result I made a STC order to capture as much profit on them as I could the next time it went up . Unfortunately, I didn't expect it to go up so quickly and so soon. As a result it executed the trigger price of the order today and I am now out of the position. This is also the position I was talking about earlier when discussing CPLP. As a result of a miscalculation of the commission cost, I am pocketing less than the intended 50% profit on the trade. I should have calculated 150% on the base cost I got in for and then added the round-trip commission costs on top of that value, and then divided that sum by the number of contract shares. That then would have given me the price to sell.
My next portfolio position to mention is that of the United States Natural Gas Fund ETF (UNG). The two Call options I purchased on it were also hit hard last week. I also believe that the value will go up eventually. As a result, I made a STC order to capture a reasonable 50% profit on the position. Unfortunately, the calculation for this order was also off, so I will be increasing it along with the one for CPLP.
Finally, the iShares Silver Trust ETF (SLV) peaked above the $19 strike price for the Call option I sold against my shares. As a result, I am less confident that I will be holding on to both the premium for the call option I sold as well as my shares of SLV. Although I am less confident, I am not concerned, because I will collect a nice profit on the transfer of the shares. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Thursday, January 28, 2010
Portfolio Update
CPLP had a bearish day on higher than average volume. The price movement of the day resembles that of yesterday. It opened slightly higher only to drop hard during the day and then close much closer to but below the open. This repeated price movement is causing the Stochastic and MACD indicators to start slowing their decent.
EVEP had a bullish day on less than average volume. The price movement was relatively narrow but was enough to affect the Stochastic and MACD indicators. They are both pointing up at this time. I believe the strength is building up under this stock to blow through $32.
SLV had a really bearish day on greater than average volume. The price movement was completely contrary to what I thought it would be. I think I will posting a order to selling the $18Feb10 call against my shares to collect a little premium. But when I post the order it will be at a higher price than the bid and ask. I want it to sell after the market has turned back up for the commodity.
ISPH, my paper trade, had a bearish day on lower than average volume, but it is closed near the close of yesterday. The Stochastic indicator is still pointing down, but the MACD has already begun to level off. I seems to be taking it's time, but I think I will see a change in it by next week.
In addition, AEA, JPM, OPWV, and S all look like they are in position for a rally. I am adding them to my paper trades at this time. I have higher expectations for AEA and JPM than I do for OPWV and S, but I wouldn't mind being pleasantly surprised. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
EVEP had a bullish day on less than average volume. The price movement was relatively narrow but was enough to affect the Stochastic and MACD indicators. They are both pointing up at this time. I believe the strength is building up under this stock to blow through $32.
SLV had a really bearish day on greater than average volume. The price movement was completely contrary to what I thought it would be. I think I will posting a order to selling the $18Feb10 call against my shares to collect a little premium. But when I post the order it will be at a higher price than the bid and ask. I want it to sell after the market has turned back up for the commodity.
ISPH, my paper trade, had a bearish day on lower than average volume, but it is closed near the close of yesterday. The Stochastic indicator is still pointing down, but the MACD has already begun to level off. I seems to be taking it's time, but I think I will see a change in it by next week.
In addition, AEA, JPM, OPWV, and S all look like they are in position for a rally. I am adding them to my paper trades at this time. I have higher expectations for AEA and JPM than I do for OPWV and S, but I wouldn't mind being pleasantly surprised. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Wednesday, January 27, 2010
Portfolio Update
CPLP had a bearish day on slightly higher than average volume. The Stochastic and MACD indicators are unchanged in their direction. What we do have is a very long lower shadow that just barely touched the low made back in late December that started the last rally. There was then a push back up from the extreme low to close slightly lower than the open. This is an indication that a change in direction may be in the future.
EVEP had a bearish day on higher than average volume. The Stochastic indicator continued to point up but the MACD indicator turned back down. With a lower shadow almost the same length of the body of the move, I am thinking that the immediate future of the stock will see continued sideways trading with a slight push up.
SLV had a bearish day on less than average volume. The Stochastic and MACD indicators are both still pointing down, but the MACD indicator is reacting to the averaging of the past two days. I think it is leveling off right now and then it will finally start to climb. As a result of the price movement today, my limit order was executed at a much lower price than I expected. I now have a full contract worth of SLV to sell calls against. I will start looking for one.
ISPH, my paper trade, had a bullish day on much less than average volume. Both the Stochastic and MACD indicators are still pointing down, but the MACD is already reacting to the averaging out of the past four days. I think it will go up soon enough. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
EVEP had a bearish day on higher than average volume. The Stochastic indicator continued to point up but the MACD indicator turned back down. With a lower shadow almost the same length of the body of the move, I am thinking that the immediate future of the stock will see continued sideways trading with a slight push up.
SLV had a bearish day on less than average volume. The Stochastic and MACD indicators are both still pointing down, but the MACD indicator is reacting to the averaging of the past two days. I think it is leveling off right now and then it will finally start to climb. As a result of the price movement today, my limit order was executed at a much lower price than I expected. I now have a full contract worth of SLV to sell calls against. I will start looking for one.
ISPH, my paper trade, had a bullish day on much less than average volume. Both the Stochastic and MACD indicators are still pointing down, but the MACD is already reacting to the averaging out of the past four days. I think it will go up soon enough. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Tuesday, January 26, 2010
Portfolio Update
CPLP had a bearish day on less than average volume. However, the low of the day was better than yesterday, suggesting that there is bullish interest, but the lack of volume and the value still closing lower suggests otherwise. The Stochastic and MACD indicators are both still pointing down with no sign of reversing at the present time.
EVEP had a bullish day on slightly better volume than average. The price movement of the past couple weeks looks like a charting pattern called a cup & handle. This pattern suggests a breakout. We also have the Stochastic indicator continues to climb above it's signal line and the MACD indicator has climbed to the point of intersecting with it's signal line. After this additional day of price movement, I think it will continue to climb. That is my opinion, you can take it or leave it.
SLV had a bullish day on better than average volume, but only after take a dive at the open. In the end, despite gaining back much of it's opening loses, it closed lower than the previous day's close. I am glad I listened to the contradiction of the Stochastic and MACD indicators, which are both still pointing down. However, today the price movement is slightly above an inclining support line I have been tracking it against. Also, the bid and ask prices are higher and narrow in spread. This leads me to believe that there is a chance of a bullish move tomorrow. I am putting an order in to buy more at this level. It won't leave me with much afterwards. But I will have enough to sell a covered call against it in the future.
ISPH, my paper trade, had a bearish day on less than average volume. The Stochastic indicator is holding a consistent decline while the MACD indicator is slowing down slightly. Also, the bid and ask prices are wide apart and bracket the price movement of the day. I still believe that the direction for the immediate future is sideways. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
EVEP had a bullish day on slightly better volume than average. The price movement of the past couple weeks looks like a charting pattern called a cup & handle. This pattern suggests a breakout. We also have the Stochastic indicator continues to climb above it's signal line and the MACD indicator has climbed to the point of intersecting with it's signal line. After this additional day of price movement, I think it will continue to climb. That is my opinion, you can take it or leave it.
SLV had a bullish day on better than average volume, but only after take a dive at the open. In the end, despite gaining back much of it's opening loses, it closed lower than the previous day's close. I am glad I listened to the contradiction of the Stochastic and MACD indicators, which are both still pointing down. However, today the price movement is slightly above an inclining support line I have been tracking it against. Also, the bid and ask prices are higher and narrow in spread. This leads me to believe that there is a chance of a bullish move tomorrow. I am putting an order in to buy more at this level. It won't leave me with much afterwards. But I will have enough to sell a covered call against it in the future.
ISPH, my paper trade, had a bearish day on less than average volume. The Stochastic indicator is holding a consistent decline while the MACD indicator is slowing down slightly. Also, the bid and ask prices are wide apart and bracket the price movement of the day. I still believe that the direction for the immediate future is sideways. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Thursday, January 21, 2010
Portfolio Update
CPLP had a bearish day on less than average volume. The price movement wasn't enough to drastically move the Stochastic and MACD indicators, so the Stochastic indicator is slowly declining but is still in the overbought range and the MACD is continuing it's slow decline to the zero line. The call option I sold on it still looks safe.
EVEP had a bearish day on greater than average volume. The price movement was wide, so the turn up in the Stochastic and MACD indicators has abruptly shifted back down. I think there is some more down side and flat movement before it actually goes back up.
SLV had a bearish day on greater than average volume. The price movement was large enough that the Stochastic and MACD indicators continued to dive. It looks like the concern I spoke about yesterday is coming true. However, I am thinking that it may drop as far as $16 a share.
As far as my paper trades, ISPH had a seriously bearish day on catastrophically greater than average volume. The price first gaped down and then swung both higher and lower during the entire day. At the end of the day it closed slightly better than it had started. Unfortunately, ISPH is now so much lower than I had expected, so my exit strategy need revising. I am buying back the $7.50Feb10 Call option at $0.05 and will be holding the stock. Depending on the movement tomorrow, I may sell the the $5Feb10 Call against it or sell the stock. This is a wait and see situation for at least 24hrs. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
EVEP had a bearish day on greater than average volume. The price movement was wide, so the turn up in the Stochastic and MACD indicators has abruptly shifted back down. I think there is some more down side and flat movement before it actually goes back up.
SLV had a bearish day on greater than average volume. The price movement was large enough that the Stochastic and MACD indicators continued to dive. It looks like the concern I spoke about yesterday is coming true. However, I am thinking that it may drop as far as $16 a share.
As far as my paper trades, ISPH had a seriously bearish day on catastrophically greater than average volume. The price first gaped down and then swung both higher and lower during the entire day. At the end of the day it closed slightly better than it had started. Unfortunately, ISPH is now so much lower than I had expected, so my exit strategy need revising. I am buying back the $7.50Feb10 Call option at $0.05 and will be holding the stock. Depending on the movement tomorrow, I may sell the the $5Feb10 Call against it or sell the stock. This is a wait and see situation for at least 24hrs. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Wednesday, January 20, 2010
Portfolio Update
CPLP was unchanged from yesterday on less than average volume.
EVEP had a bullish day on slightly greater than average volume. The Stochastic and MACD indicators intersecting and crossing over their signal lines. The price is currently near the most recently created high. This leads me to believe that EVEP will be going up a lot more in the near future.
SLV had a very bearish day on greater than average volume. It pulled back all the way to the $17.50 support level. Such a pull back in one day, while the Stochastic indicator is still in the overbought range and the MACD indicator is only starting to point down, stirs a bit of concern in me that SLV might pull back as far as $16.50. If it does, and bounces up, I believe I might buy in some more.
As for my paper trades, ISPH has come down in price and so has the value of the option. The stock is still a far cry from my $6 sell out price. Without going into the details right, if I were to sell out right now, I would be down $8, not including the cost of commissions. The plan for this Covered Call play is to try to hold on to the stock until the call option expires and hope that the stock stays between $6 and $7.50 until then. After the call option expires, I will then re-evaluate the stock to see if I will sell another option against it, just hold the stock, or sell out of the stock. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
EVEP had a bullish day on slightly greater than average volume. The Stochastic and MACD indicators intersecting and crossing over their signal lines. The price is currently near the most recently created high. This leads me to believe that EVEP will be going up a lot more in the near future.
SLV had a very bearish day on greater than average volume. It pulled back all the way to the $17.50 support level. Such a pull back in one day, while the Stochastic indicator is still in the overbought range and the MACD indicator is only starting to point down, stirs a bit of concern in me that SLV might pull back as far as $16.50. If it does, and bounces up, I believe I might buy in some more.
As for my paper trades, ISPH has come down in price and so has the value of the option. The stock is still a far cry from my $6 sell out price. Without going into the details right, if I were to sell out right now, I would be down $8, not including the cost of commissions. The plan for this Covered Call play is to try to hold on to the stock until the call option expires and hope that the stock stays between $6 and $7.50 until then. After the call option expires, I will then re-evaluate the stock to see if I will sell another option against it, just hold the stock, or sell out of the stock. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Tuesday, January 19, 2010
Portfolio Update
CPLP had a bullish day on barely more than average volume. The price movement caused the Stochastic indicator to turn back up toward it's signal line and the MACD indicator to level off. It may actually turn up but I don't think this will last.
EVEP had a bullish day on lower than average volume. The price movement was dramatic but the Stochastic indicator barely changed direction from it's downward trend. The MACD indicator, however, made a hard move up from it's downward trend. This indicator behavior, plus that the stock had a bullish candlestick move not to long ago, leads me to believe that the stock is looking to rally back to $32.50 and beyond.
SLV had a bullish day on less than average volume. The close of the day broke above the downward trending resistance line that was created at the last high it put in last week. The Stochastic and MACD indicators are trending sideways right now, and may be suggesting that SLV cold be topped out for now. What I believe will happen is that SLV will oscillate between the support level at about $17.50 and the downward trending resistance line, generating new resistance lines a few times, until the Stochastic and MACD indicators approach neutral levels again.
For a paper trades, I see a Covered Call play I want to document. The stock is ISPH, this is a pharmaceutical company. Since I am not particularly keen on pharmaceutical companies, this is the reason why I am paper trading instead of actually getting into it. Today the stock closed at $6.80 and the very next OTM Call option is the 7.50Feb10 Call. For this paper trade I am buying 200 shares at $6.80 a share and selling two of the 7.50Feb10 calls against it at $0.70 a contract share for a total cost to me of $1200, not including commission costs. [(200x6.80)-(200x0.70)=1200].
This stock has a high of $7.03. If it closes above that, I will buy back the option and sell out of the stock. However, if it drops below $6.00 I will also buy back the options and sell out of the stock. If it stays between those ranges until market close February 19th, I won't have to buy back the option and I can decide what to do with the stock then. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
EVEP had a bullish day on lower than average volume. The price movement was dramatic but the Stochastic indicator barely changed direction from it's downward trend. The MACD indicator, however, made a hard move up from it's downward trend. This indicator behavior, plus that the stock had a bullish candlestick move not to long ago, leads me to believe that the stock is looking to rally back to $32.50 and beyond.
SLV had a bullish day on less than average volume. The close of the day broke above the downward trending resistance line that was created at the last high it put in last week. The Stochastic and MACD indicators are trending sideways right now, and may be suggesting that SLV cold be topped out for now. What I believe will happen is that SLV will oscillate between the support level at about $17.50 and the downward trending resistance line, generating new resistance lines a few times, until the Stochastic and MACD indicators approach neutral levels again.
For a paper trades, I see a Covered Call play I want to document. The stock is ISPH, this is a pharmaceutical company. Since I am not particularly keen on pharmaceutical companies, this is the reason why I am paper trading instead of actually getting into it. Today the stock closed at $6.80 and the very next OTM Call option is the 7.50Feb10 Call. For this paper trade I am buying 200 shares at $6.80 a share and selling two of the 7.50Feb10 calls against it at $0.70 a contract share for a total cost to me of $1200, not including commission costs. [(200x6.80)-(200x0.70)=1200].
This stock has a high of $7.03. If it closes above that, I will buy back the option and sell out of the stock. However, if it drops below $6.00 I will also buy back the options and sell out of the stock. If it stays between those ranges until market close February 19th, I won't have to buy back the option and I can decide what to do with the stock then. That is my opinion, you can take it or leave it.
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
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