- It looks like my call spread trade with gld will be in a holding pattern until time value expires. I could have done a better job of analyzing the pricing on the options throughout the spread cycle.
- GE seems to be a holder but I cannot do much with it right now. I am holding as they are looking to sell some businesses.
- I am thinking that PBW is at a bottom for the rest of the year. The down trend which was fierce the last month has stopped completely. That is not to say that the ETF is moving up. Just that the down trend has stopped.
This type of financial environment is volatile to me but not scary. It is the reason I bought GLD in the first place. I believe every market has its opportunities. You just have to find them. If you have a strategy, then you will find a market or stock for that strategy. Be patient and do the work necessary to find those positions.
Showing posts with label PBW. Show all posts
Showing posts with label PBW. Show all posts
Monday, July 14, 2008
Friday, July 11, 2008
learning to make money with spreads
Hey
Recently I started to look into investing in spreads to minimize the risk, yet still make a decent profit. My first trade was with PBW. The stock had gotten taken down in January and formed a buy doji the length of a runway. For protection, I went out six months to buy the June 22/24 call spread. The stock had gotten as low as 18 but because I had time on my side, I still held. Well, in May the stock moved up to my sell point and I was out of the position with a 47% gain.
Wow! 47% on the first trade. This looks like something I can do with my extreme discretionary funds.
The next trade I made was with GE. I bought the 32/34 Dec call spread thinking that the formula worked once, why not again. But right now the stock is around 27 with new earnings out that met expectations. I still feel pretty safe with this trade because I believe the downturn was the fault of the earnings miss the previous quarter. They also are looking to sell some divisions that should boost the earnings and the stock price.
I have also recently purchased the Dec GLD 92/94 call spread. I purchased this two weeks ago when the ETF was at 91 and today it is at 95. With both calls in the money, I figured that I would carry the two dollars and sell. Wrong.
It seems time has a strange formula that I had not picked up on with PBW. With PBW, there was barely any time value left on the trade. So the spreads were basic. But this is not the case with GLD as there is still five months to go before expiration. The time value for the 94's is currently more than the time value for the 92's. So much so that I am going to have to wait for my profit and now have the risk of the ETF going down during that time. This is an eye opener and I will have to add that to my list of issues with trading spreads.
Recently I started to look into investing in spreads to minimize the risk, yet still make a decent profit. My first trade was with PBW. The stock had gotten taken down in January and formed a buy doji the length of a runway. For protection, I went out six months to buy the June 22/24 call spread. The stock had gotten as low as 18 but because I had time on my side, I still held. Well, in May the stock moved up to my sell point and I was out of the position with a 47% gain.
Wow! 47% on the first trade. This looks like something I can do with my extreme discretionary funds.
The next trade I made was with GE. I bought the 32/34 Dec call spread thinking that the formula worked once, why not again. But right now the stock is around 27 with new earnings out that met expectations. I still feel pretty safe with this trade because I believe the downturn was the fault of the earnings miss the previous quarter. They also are looking to sell some divisions that should boost the earnings and the stock price.
I have also recently purchased the Dec GLD 92/94 call spread. I purchased this two weeks ago when the ETF was at 91 and today it is at 95. With both calls in the money, I figured that I would carry the two dollars and sell. Wrong.
It seems time has a strange formula that I had not picked up on with PBW. With PBW, there was barely any time value left on the trade. So the spreads were basic. But this is not the case with GLD as there is still five months to go before expiration. The time value for the 94's is currently more than the time value for the 92's. So much so that I am going to have to wait for my profit and now have the risk of the ETF going down during that time. This is an eye opener and I will have to add that to my list of issues with trading spreads.
Monday, April 28, 2008
Time to straddle PBW again
Hey everyone
The chart of PBW is again telling us to straddle. I would pick the Sep 21's and 22's. With earnings coming up in the next couple of weeks for the companies covered, there should be some decent volatility. The image is blurred but you can see the price is right on the 15ma and the bands are closing. The chart will allow a straddle because of the volatility and the consistent following on the edges of the bands to provide more than enough profit to cover the loss on the other side. Also, 700, shares have been traded by 1 PM eastern which is fairly heavy at this point in the day. Thanks to Optionsxpress for the chart.
The chart of PBW is again telling us to straddle. I would pick the Sep 21's and 22's. With earnings coming up in the next couple of weeks for the companies covered, there should be some decent volatility. The image is blurred but you can see the price is right on the 15ma and the bands are closing. The chart will allow a straddle because of the volatility and the consistent following on the edges of the bands to provide more than enough profit to cover the loss on the other side. Also, 700, shares have been traded by 1 PM eastern which is fairly heavy at this point in the day. Thanks to Optionsxpress for the chart.
Monday, April 7, 2008
PBW news and holdings 4/7
Hey everyone
Here are the top ten and news stories for PBW and the top ten
Upgrades/Downgrades
None
News
PBW - Seeking Alpha article on top revenue by ETFs
YGE - Solar starts week strong
TSL - Motley Fool article on solar
ESLR - Rueters article on plant expansion
ELON - Yahoo article on Philips agreement
Here are the top ten and news stories for PBW and the top ten
| 
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Upgrades/Downgrades
None
News
PBW - Seeking Alpha article on top revenue by ETFs
YGE - Solar starts week strong
TSL - Motley Fool article on solar
ESLR - Rueters article on plant expansion
ELON - Yahoo article on Philips agreement
Thursday, March 27, 2008
PBW news
Hey everyone
Here is the updated top ten list with news:
News
AMAT - Clean Energy hold potential
Closed Mixed on Wed.
Ormat - drop in net for quarter
AMSC - CEO sells shares
Here is the updated top ten list with news:
| 
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
News
AMAT - Clean Energy hold potential
Closed Mixed on Wed.
Ormat - drop in net for quarter
AMSC - CEO sells shares
Thursday, March 13, 2008
3/13/ PBW
Universal Display is releasing earnings after the close today. So we should see some movement on this tomorrow.
Here are the news for the 13th on PBW:
IBD article on Itron
Motley article on Ormat and First Solar
CNBC article on First Solar
Have a great day
Here are the news for the 13th on PBW:
IBD article on Itron
Motley article on Ormat and First Solar
CNBC article on First Solar
Have a great day
Wednesday, March 12, 2008
PBW 3/12
Hey
PBW has hit another bottom and has moved up over a dollar from that low. I am thinking there might (and I stress might) be a W forming here. The 50 day has crossed over the 200 day average and is located just at the middle of the prospective W (at about 23). I believe there is a short term bullish call up to 22.50. There will be some resistance at that point so watch out for that. If it breaks through this point, we will have a W. If not, I would wait and figure out if there is a range to be traded. Another note is that the bands have opened up and this stock has a history of riding the edges both negative and positive. Keep that in mind. Here is a graph as of 10:45 CST today. Stories of the day are below the graph.
Thanks to Yahoo Finance, Optionsxpress, and Powershares.
Seeking Alpha article on PBW
Seeking Alpha article on Suntech
TSC article on CREE
WSJ article on ITRI
Yahoo! article on Solar
PBW has hit another bottom and has moved up over a dollar from that low. I am thinking there might (and I stress might) be a W forming here. The 50 day has crossed over the 200 day average and is located just at the middle of the prospective W (at about 23). I believe there is a short term bullish call up to 22.50. There will be some resistance at that point so watch out for that. If it breaks through this point, we will have a W. If not, I would wait and figure out if there is a range to be traded. Another note is that the bands have opened up and this stock has a history of riding the edges both negative and positive. Keep that in mind. Here is a graph as of 10:45 CST today. Stories of the day are below the graph.
Thanks to Yahoo Finance, Optionsxpress, and Powershares.
Seeking Alpha article on PBW
Seeking Alpha article on Suntech
TSC article on CREE
WSJ article on ITRI
Yahoo! article on Solar
Tuesday, March 4, 2008
3/6 PBW and more
Hey everyone
PBW is testing 20 for the third time in a month. A couple of days ago I suggested a 21 straddle and that trade looks like a winner on the put side of things. I would actually look to sell the put at a profit at this point and ride the call. For disclosure purposes, I own a 22-24 June call spread that I still feel positive about.
Buffett is the richest person in the world. That is not surprising. The diversified but focused investment approach is in my opinion the best.
PBW is testing 20 for the third time in a month. A couple of days ago I suggested a 21 straddle and that trade looks like a winner on the put side of things. I would actually look to sell the put at a profit at this point and ride the call. For disclosure purposes, I own a 22-24 June call spread that I still feel positive about.
Buffett is the richest person in the world. That is not surprising. The diversified but focused investment approach is in my opinion the best.
Wednesday, February 27, 2008
2/27 PBW
Hey everyone
Greentech Media put out an article about the solar industry on Seeking Alpha.
The chart is consolidating and is creating a nice wedge. There might be an opportunity to put a straddle on at 22 or 21. I would make it at least six months out to give sufficient time protection.
That said, I am still hanging with the call spread I own. I personally think that the sector has a lot of growth ahead of it and it will benefit from both public and private funding.
Greentech Media put out an article about the solar industry on Seeking Alpha.
The chart is consolidating and is creating a nice wedge. There might be an opportunity to put a straddle on at 22 or 21. I would make it at least six months out to give sufficient time protection.
That said, I am still hanging with the call spread I own. I personally think that the sector has a lot of growth ahead of it and it will benefit from both public and private funding.
Monday, February 25, 2008
PBW news 2/25
Not much movement or news today. There was a story about First Solar in the WSJ's Investing section but it was fluff being the hot stock in 2007. But press is press.
The bands are within 2 points of eachother which is the closest they have been in 3-6 months. Expect some movement this week as the fed chairman speaks to congress and a couple of the companies are releasing earnings.
Later
The bands are within 2 points of eachother which is the closest they have been in 3-6 months. Expect some movement this week as the fed chairman speaks to congress and a couple of the companies are releasing earnings.
Later
Thursday, February 21, 2008
PBW info
Hey everyone
The following stories about companies within PBW seemed relevant to post. I also posted the stories on Yahoo! Finance if that is easier
- thestreet.com article on First Solar (company web site)
- seekingalpha article on PBW (company website)
- reuters article on Itron (company website)
I think the ETF has hit a gathering period. I still feel my 22-24 June spread is a good trade.
A penny for your thoughts.......dollars for our investments!
The following stories about companies within PBW seemed relevant to post. I also posted the stories on Yahoo! Finance if that is easier
- thestreet.com article on First Solar (company web site)
- seekingalpha article on PBW (company website)
- reuters article on Itron (company website)
I think the ETF has hit a gathering period. I still feel my 22-24 June spread is a good trade.
A penny for your thoughts.......dollars for our investments!
Monday, January 7, 2008
Clean Energy ETF (PBW)
Happy New Year Everyone!
I am writing to let you know about an ETF that I have found and like very much. It is called the Powershares Milwall Clean Energy ETF with the symbol PBW. I like the ETF because it falls under the four principles of Warren Buffet’s investing style (management, price, industry growth, and value). The ETF is managed well. The ETF has included industry leaders like First Solar in its portfolio. It also contains companies that cover the entire process from idea to product usage. The technical aspects of PBW’s chart show that it is in an upward trend. Its Price to Earnings ratio is reasonable. The profits for most of these companies will grow at an exponential rate because there is demand from both public and private sources.
The one downside I would say that it has is that a great majority (over 91%)of the ETF’s holdings reside in the US and I would like to see more exposure to clean energy companies outside the US.
As always, do the homework necessary to get your investments correct. I do my homework by using Yahoo Finance and Optionsxpress. They are both excellent resources.
As of right now I do not own any shares, optionsof PBW, or any shares or options of the securities within PBW.
Please post any comments as you see fit.
I am writing to let you know about an ETF that I have found and like very much. It is called the Powershares Milwall Clean Energy ETF with the symbol PBW. I like the ETF because it falls under the four principles of Warren Buffet’s investing style (management, price, industry growth, and value). The ETF is managed well. The ETF has included industry leaders like First Solar in its portfolio. It also contains companies that cover the entire process from idea to product usage. The technical aspects of PBW’s chart show that it is in an upward trend. Its Price to Earnings ratio is reasonable. The profits for most of these companies will grow at an exponential rate because there is demand from both public and private sources.
The one downside I would say that it has is that a great majority (over 91%)of the ETF’s holdings reside in the US and I would like to see more exposure to clean energy companies outside the US.
As always, do the homework necessary to get your investments correct. I do my homework by using Yahoo Finance and Optionsxpress. They are both excellent resources.
As of right now I do not own any shares, optionsof PBW, or any shares or options of the securities within PBW.
Please post any comments as you see fit.
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