August 20, 2017

Archives for May 2010

Sitting in Cash

I exited my last USO position this afternoon. Here is the following trade: The trade made $.61 (20 contracts at an avg. price of $2.53) or 24.0%. I will be back either late this evening or tomorrow with a summary and a copy of my TOS trade summary over the past week/month.  Stay tuned! Also, I will have a complete monthly summary of the Options Portfolio in the upcoming FREE Newsletter. … [Read more...]

Market Rallies Off Lows. Possible Short-term Rally Ahead?

It was a wild day for the market and traders alike. The market (Dow) staged a late day rally to close down 22 points after a plunge of 292 points at the open. Best of all, the major indices (DIA, QQQQ, SPY and IWM) are still in a short-term oversold state which means that the probability of a continued short-term bullish run is better than average. I am looking for a close in the gap from 5/20 in all of the indices mentioned. I currently have positions in USO and IWM, as well as a mid-day purchase of GDX. Here is the trade from my TOS account: I also added another IWM position to the mix: Both trades did extremely well today. The GDX trae is currently higher 35.3% or $.71 and the IWM trade is up 26.1% or $.52. However, my … [Read more...]

Still Holding USO and IWM

I actually purchased 1o more contracts on IWM this morning due to the large gap down and the short-term oversold state of the underlying Russell 2000. I am hoping that patience pays, but preserving capital might get in the way. I will be back with the trade for all of you loyal followers of the blog shortly. Kindest, Andy … [Read more...]

Russell 2000 (IWM) Looks Ripe

The bullish engulfing pattern that was established Friday in IWM, the oversold nature of the underlying, and lastly, the unclosed gap from 5/20, has led me to place a short-term trade in the Russell 2000 (IWM). Here is the trade from my Thinkorswim account: I would like to see a move up to $66.58. This would be the level at which the gap would close from 5/20 and where I would most likely look to exit the trade or tighten my stop. I also still have 20 contracts out on USO for an average price of $2.53. I am currently down 17.0% on the trade, but have not given up on a bounce. If  the underlying pushes lower and back through the 5/20 low of $31.64 then I will take off the trade. Otherwise, I plan on holding until the anticipated … [Read more...]

Added Another USO Position

I just purchased another 10 contracts in USO. Yes, I am doubling down in a sense, but I am fairly confident in a short-term bounce as many of the bullish indicators are at/near historical levels. I will be back with the exact trade from my TOS account alter this afternoon. Happy trading! Andy … [Read more...]

Could Not Resist the Oversold State of USO

The United States Oil Fund (USO) currently sits in a short-term 'very oversold" position. I was able to take advantage of the oversold extreme at the open as the underlying USO spiked higher at the open and afforded me a wonderful opportunity to take some profits (reported in an earlier post). At the end of the day USO had once again made new lows, so I am once again attempting to take advantage of the high-probability trade by buying a few more calls. Here is the trade placed in my Thinkorswim account: There are quite a few short-term technical indicators that are screaming for a bounce to occur, so I am not going to fight Mr. Probability. I still think we could trade in a 1110-1180 range for quite some time. A break and hold below … [Read more...]

Options Trade Update

The higher open today allowed me to take off the three positions that I established yesterday. I would have preferred a move that closed the gap, but all three pierced my underlying support levels so I decided it was best to go ahead and take my profits off the table. Here are the following trades from my TOS account: The net profit for the trades was $845.00 which resulted in an 3.8% gain for the My Options Portfolio. My Options Portfolio is now up 14.0% since it was initiated at the beginning of May. Here are the overall results for the trades I placed from Monday. S&P 500 (SPY)  +10.2% SPDR Gold Trust (GLD)  +9.3% US Oil Fund (USO) +10.1% I am stepping away from the screen for a bit to visit the park … [Read more...]

Summary of Today’s Options Trades

Vacillation is the word that best describes today's trading - widely vacillating to be more exact. I bought a few calls early in trading day  (check the earlier post from today) in the S&P 500 (SPY) and an hour and a half later purchased a few calls in the Gold (USO).  The technicals I follow closely moved into a short-term oversold state with an unclosed gap (5/14) looming overhead in the major market index - a set-up that I most often prey upon.  My expectation is to see a short-term move in the SPY that takes index back to $155.89 (the low from 5/13) . An advance in the index would certainly move conversely with the overbought state in Gold (GLD) so I decided to buy a very small position in GLD. I set my limit order for $2.75 , but … [Read more...]

I Have the Gold Bug

I just purchased a few contracts in GLD. I follow Tim Knight and think highly of him as a technician and when I saw that we were thinking the same about the state of GLD I decided to purchase a few puts. Unfortunately, I was only able to buy three puts before GLD moved away from my limit price ( I typically never chase). Here is the trade: I will be back later with a follow-up on my trades. Happy trading, Andy … [Read more...]

Very Short-term Trade – SPY

I woke up this morning with the same assumption that I had last week - this market is headed lower. Maybe not today, maybe not tomorrow. When taking a look at the S&P 500 (SPY) over the short-term  it looked like a decent area to try a call. Of course, this would only be  a short-term play and I intend on keeping my stops fairly close so I decided to place the following in my thinkorswim account: So far the trade isn't holding up so I could be out of this almost as soon as I got it. Unfortunately, that is how it goes sometimes. I can only go on probabilities as a trader and as we know there are no guarantees in trading/investing. The key is  to manage your risk wisely. Kindest, Andy … [Read more...]