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
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
Sunday, July 11, 2010
Portfolio Update: Change Of Opinion
In my last post I indicated an opinion that the market may not be done pulling back. I still think this is probably true. However, as for Capital Product Partners, LP, I don't think that pull back will happen before this coming option expiration. As a result, I am in danger of having my CPLP stock shares called away from me unless I Buy to Close the option I sold against it.
Unfortunately, the value of the option is now 150% of the value that I sold it at. In order for me to buy it back I have to free up some of the capital I have reserved for purchasing 10 shares of EV Energy Partners, LP. All things considered it was not looking likely that EVEP was going to come down to my desired price.
After canceling my Buy Order on EVEP, I entered a Buy to Close order on my CPLP7.50July10 Call option. While entering it, I set it up as a One-Triggers-Other order so that I will also have a Sell to Open order against my CPLP shares at the next highest available strike price - that is the CPLP10Aug10 Call. In the current week I am expecting CPLP to get as high as $9, maybe more. Being this far out from option expiration of August should provide enough time value to get a decent premium. Also the difference between the strike price of the option and the value I purchased the stock will result in a fairly acceptable profit to off-set the loss of the last trade. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
Unfortunately, the value of the option is now 150% of the value that I sold it at. In order for me to buy it back I have to free up some of the capital I have reserved for purchasing 10 shares of EV Energy Partners, LP. All things considered it was not looking likely that EVEP was going to come down to my desired price.
After canceling my Buy Order on EVEP, I entered a Buy to Close order on my CPLP7.50July10 Call option. While entering it, I set it up as a One-Triggers-Other order so that I will also have a Sell to Open order against my CPLP shares at the next highest available strike price - that is the CPLP10Aug10 Call. In the current week I am expecting CPLP to get as high as $9, maybe more. Being this far out from option expiration of August should provide enough time value to get a decent premium. Also the difference between the strike price of the option and the value I purchased the stock will result in a fairly acceptable profit to off-set the loss of the last trade. 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
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