Monday, December 13, 2010

Portfolio Update: In And Down, But Not Yet Out.

So picture this; I saw that the QQQQ was going to gap up so instead of setting my entry point right away, I waited for the market to open and watched the initial behavior. Low and behold, QQQQ pulled back to the previous day's close before moving back up again. So once I saw one 5 minute interval of positive trading I set my buy order for 10 of the QQQQ 20110122 $55.00 calls. As a protection I set a stop for 20% of my entry price and one time during the day increased it as the option rose into the profitable range.

The good news is that I saved myself a little on the initial principle. The bad news is that the NASDAQ, of which QQQQ is based on, could not push much higher than it's open, and systemically fell apart in the last hour of trading. What I have now is a highly leveraged position with a $80 paper loss, that is on the verge of becoming a slightly higher and realized loss unless tomorrow is something all positive. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

QQQQ - PowerShares QQQ Trust ETF

Friday, December 10, 2010

Portfolio Update: Flat Markets Bad For Long Options

Well, I was just stopped out of the position I BTO on Wednesday. My position of 5 QQQQ 20110122 $54.00 puts stopped out at $1.18 for a 25.7% loss. It is my belief that I gave the drop in price on Tuesday way too much credit. I really should have took into consideration that the price of QQQQ still closed higher than the previous day's close. That being understood now, I believe that it is important not get in until after there is a confirmation day, and not get in on what you think will be a confirmation day.

My forecast for QQQQ is that if it does break above $54.52, I should probably make the 'trend my friend.' That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

BTO - buy-to-open / bought-to-open
QQQQ - PowerShares QQQ Trust

Wednesday, December 8, 2010

Portfolio Update: In And Out, Then In Again.

Today was dissatisfying. For starters I entered into a position with an earlier expiration than I wanted to get into. Fortunately, it was relatively profitable for $7. Then once I got out of that position I got into the position I intended on entering. The position was for 5 of the QQQQ 20110122 $54.00 puts.

At first the position was profitable for what could have been about $43 net. But 5% wasn't good enough for me, so I continued to hold it for my 10% target. That didn't happen and now my position is down about 12% after taking into consideration commissions.

After analyzing the price movement of the past three days, I think there is a 60% chance that if tomorrow is a down day for QQQQ, that I could see a profit of 50% or more for my put position. The good news is that there are 2 more days left in this week. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/

QQQQ - PowerShares QQQ Trust

Thursday, November 25, 2010

Portfolio Update: One Day Trade

Today is Thanksgiving and the U.S. markets are closed. Since I didn't have the time last night to post the results of my last trade, I am doing it now. Yesterday, I entered into a 5 contract position of the QQQQ 20110122 $53 call options. This was done as a contingent order that if the underlying QQQQ shares priced above $52.86 that I would BTO a position of 5 call options at a limit of $1.49 per contract share. It triggered and my position was BTO at $1.46.

The value continued to climb to $1.60 early in the day and held that level through-out the afternoon with a top of $1.63. With my non-professional analysis of the technical indicators, I became uncertain of this stalled gain continuing higher past Thanksgiving. So I decided to make a day traders move and cash out before the close at the bid of $1.59. This resulted in this trade profiting just over 6.5%. Again, better than bank interest. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

BTO - buy-to-open / bought-to-open
QQQQ - Powershares QQQ Trust ETF

Thursday, November 18, 2010

Portfolio Update

Today was a profitable day, although not nearly as profitable as I would have liked. This morning I was stopped out of my position of the QQQQ 20110122 $53 puts I purchased a week ago. The profit made on this trade was only a measly 5.7%. If I had STC yesterday, after it had made more than 30% profit in one week, I could have captured at minimum of 22.7%. Live and learn I guess. Should I consider literally selling into strength, or may be tightening up my stops to more than 25% of the most recent high? That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

QQQQ - Powershares QQQ Trust ETF
STC - sell-to-close / sold-to-close

Thursday, November 11, 2010

Portfolio Update

Yet another day where I wish I didn't have to work until 30 minutes after the market opens. Today I BTO a position of 3 QQQQ 20110122 $53 put options. And of course getting into this position occurs after QQQQ gaps down and then retraces back up during the day. It was still a down day for QQQQ, so this could just be one of those annoying days. I have my stop put in just in case. We will see how it turns out.

That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

BTO - buy-to-open / bought-to-open
QQQQ - Powershares QQQ Trust ETF

Portfolio Update

Well that was a lousy day in the market for me. I got stopped out of both my SLV and UNG option positions for a loss on both. SLV stopped out at $1.26, a little under my stop of $1.28, for a loss of about 26.9%. UNG stopped out at $0.38 for a loss of about 2.6%. Both are looking like they are pulling back. At some point in the near future, I will probably try re-entering.

That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

SLV - iShares Silver Trust ETF
UNG - United States Natural Gas Fund ETF