August 17, 2017

Archives for May 2010

Options Portfolio – Weekly Review

What a wonderful week for my Options Portfolio. It was a tough one during the beginning of the week, but as I always say "Patience Pays". Hopefully, all of you were able to take advantage of the short-term decline over the last couple of trading days. If you have been following me this week you must know that I have been quite bearish as I held five 10 contract bearish options positions at various times throughout the week.  I dabbled in the tech heavy NASDAQ 100 (QQQQ), UltraShort S&P 500 (SDS), (Russell 2000) IWM, Anadarko (APC) and Barrick Gold (ABX). The following are the closing trades from four of my positions. Here are the results from my Thinkorswim account. You can go back through the previous posts for this week or … [Read more...]

All Four Options Positions Remain Open

I have four positions that are currently open - ABX, QQQQ, IWM and SDS. As expected, ABX has moved decisively lower and out of its extreme short-term 'very overbought and as a result my position is up 29.9% and after the market ripped lower today the three other positions that I hold have moved ever closer to profitable. As I have stated repeatedly, I continue to side with the bears over the short-term. I will most likely take a few contracts off (and tighten my stops) once the gap (from Tuesday) is filled in the major indices. The following are the areas that I will either take off my positions or tighten my stops (depends on the price action at the time). If the market does indeed move lower and the following gaps fill I should reap a … [Read more...]

One More Trade. Seal the Deal?

Gold, gold, gold. Up, up and away! Almost every gold stock has pushed into 'overbought' to 'very overbought' territory and as a result I have decided to place a short trade on the one I feel is the most 'overbought' and liquid. I stumbled across Barrick Gold (ABX) today. The underlying stock has a RSI (2) of 93.3 and a RSI (5) over over 84. Furthermore there was a gap higher on Tuesday (5/11) so I am looking for a move down to the $43.99 area (high from Monday) to exit the position. Here is the trade per my Thinkorswim account: Again, I will be back later this evening with a recap of my trades and my thought on the market. As you can see I am quite bearish over the short-term, but I will obviously keep my positions in check … [Read more...]

Two more trades

Near the close yesterday I placed the following trade: The trade was based on the short-term 'very oversold' nature of the underlying stock. Anadarko (APC) had been hovering in 'oversold' to 'very oversold' territory for 5 trading days and had reached historical 'very oversold' territory. The RSI (2) had pushed to 1.25 and the RSI (5) was reading 9.3. As a result I place the aforementioned trade and as you can see I exited the trade early in the trading session for a quick $400 profit. In hindsight, I probably should have held the Jun10 55 calls until the underlying stock crossed back over the 30, but I decided that this was a quickie yesterday and I stuck my sentiment. I still have two open put positions  from several days ago … [Read more...]

SDS Trade

I made the following trade late yesterday and so far nothing. I am essentially playing the gap from yesterday and once that fills I will most likely take off my position. Currently I have two positions open, the aforementioned SDS and the QQQQ puts from yesterday (check the post from Monday). I am looking for a gap fill in the Q's at $46.80 (high from Monday) and $32.40 in SDS (low from Monday). Remember SDS is the Ultrashort of the S&P 500. I will keep all of you informed once I close out the trades. I do plan on starting a twitter account so I can report my trades on a much more timely basis. As I stated yesterday, a 4+% gap has only happened  6 other times and notably, each time a gap of this magnitude happened the … [Read more...]

ETF Extremes Options Strategy and the First Gap Trade

After last week's historical plunge and following vacillation, I expected to see a short-term bounce today. However, a 4+% bounce was not something that I had anticipated. I went back to see when there were other such instances (gap up 4+%) and there were 6 occurrences. Notably, each time a gap of this magnitude happened the market closed the gap over the short-term. With that being said I made the following trade just a few moments ago: I will keep all of you informed as to how the trade performs. My stop loss is roughly $.35 to $.40 or a little less that 10% on this particular trade. On  a seasonal basis the 7th and 8th trading days of the month of the most bearish days in the month of May so my hope is that the seasonal breeze … [Read more...]