There is a trade I want to make but I would need to break away from my plan in order to get in now. This is where discipline is important. It is important to work the plan.
I thought I would be in the trade two weeks ago but the stock has moved up to a point where even if it stays at this price, it will still be a week or two before I can get in.
For information on the trade, you can go to my call selling blog.
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Showing posts with label options. Show all posts
Showing posts with label options. Show all posts
Friday, July 30, 2010
Thursday, January 21, 2010
opportunity let go due to discipline
So there is an excellent option opportunity tonight due to Google's earnings announcement after the bell.
But I will not be taking it due to the cash being committed to a different program (call selling) for future trades. Some may say that I should use the money now. But there being a slight possibility that the trade could be incorrect is enough motivation to keep from making that trade.
So what is the trade? It is a straddle trade with either IBM, Google, and Apple. It is my feeling that the growth in the winning option will outweigh the loss in the other option.
But I will not be taking it due to the cash being committed to a different program (call selling) for future trades. Some may say that I should use the money now. But there being a slight possibility that the trade could be incorrect is enough motivation to keep from making that trade.
So what is the trade? It is a straddle trade with either IBM, Google, and Apple. It is my feeling that the growth in the winning option will outweigh the loss in the other option.
Friday, January 25, 2008
purchased call spread for PBW
Hey
With the manic activity in the stock market, the price of a solar ETF (PBW) came down to a point where I could purchase a call spread.
So I went ahead and purchased the June 22 calls, and sold the June 24 calls (that is the spread). My thought is that with the continued spending on solar will continue in earnest by both private (corporations) and public institutions (government), the ETF will do well in the next few months. The max profit on the trade is around 115%. I do have a stop loss on the trade but will not show it. When the spread was purchased, the PE of the ETF was as low as 20!
I was able to handle this trade with the great assistance of Optionsxpress. Thanks to them!
There is a stock and options site that I find very good information. The site is called Phil's Stock World. It has very good analysis on the world markets.
Good luck to all traders. May you see value in your purchases and profits from your sales!
With the manic activity in the stock market, the price of a solar ETF (PBW) came down to a point where I could purchase a call spread.
So I went ahead and purchased the June 22 calls, and sold the June 24 calls (that is the spread). My thought is that with the continued spending on solar will continue in earnest by both private (corporations) and public institutions (government), the ETF will do well in the next few months. The max profit on the trade is around 115%. I do have a stop loss on the trade but will not show it. When the spread was purchased, the PE of the ETF was as low as 20!
I was able to handle this trade with the great assistance of Optionsxpress. Thanks to them!
There is a stock and options site that I find very good information. The site is called Phil's Stock World. It has very good analysis on the world markets.
Good luck to all traders. May you see value in your purchases and profits from your sales!
Wednesday, April 25, 2007
Pepsi's earnings
Hey
Here are some stories that explain the earnings for this past quarter.
http://www.businessweek.com/investor/content/apr2007/pi20070425_529061.htm?campaign_id=yhoo
http://www.thestreet.com/_yahoo/newsanalysis/food/10352721.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
As for my GE trade, I think I was the last person to sell. I really sold at the bottom! Crazy, but it happens. Like I said before, on to the next trade.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Here are some stories that explain the earnings for this past quarter.
http://www.businessweek.com/investor/content/apr2007/pi20070425_529061.htm?campaign_id=yhoo
http://www.thestreet.com/_yahoo/newsanalysis/food/10352721.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
As for my GE trade, I think I was the last person to sell. I really sold at the bottom! Crazy, but it happens. Like I said before, on to the next trade.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Friday, April 20, 2007
New High
Hey
It looks like the Dow has exploded! I read a bit about the lack of supply recently from Cramer at www.thestreet.com.
I just purchased a June GE 35 call. I feel comfortable that it falls within my parameters. It is right at the money. It is at a support. The trend lines (200,50,20) have all converged at 35. The earnings were solid.
There seems to be plenty of volatility coming alive. Options might be a way to exploit it. But be smart.
Oh, Pepsi hit a new high! Yeah for retirement.
Cheers
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
GE June 35 Call (www.ge.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
It looks like the Dow has exploded! I read a bit about the lack of supply recently from Cramer at www.thestreet.com.
I just purchased a June GE 35 call. I feel comfortable that it falls within my parameters. It is right at the money. It is at a support. The trend lines (200,50,20) have all converged at 35. The earnings were solid.
There seems to be plenty of volatility coming alive. Options might be a way to exploit it. But be smart.
Oh, Pepsi hit a new high! Yeah for retirement.
Cheers
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
GE June 35 Call (www.ge.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Monday, March 26, 2007
Following rules
Hey
How many of you decided that making an investment or trade before finding out all the information you are supposed to or not following your rules?
I did recently and it kicked my butt!
I was following Electronic Arts (www.ea.com) for an options trade. In the middle of Feburary, I noticed a wedge forming and settling at $50.00. I thought over the weekend that whichever way it moves, I'm going that way.
That weekend there was a positive story in Barron's about the company and the stock appropriately shot up (see chart below). There was a big move with a lot of volume. So I bought the March 55 calls. Bad move. It was bad because I didn't take a look at resistance at the 53-54 range. The calls were out of the money. I'm not kidding you when I say that one of my rules is to buy in the money calls or puts only. I could have bought the 50's, but being greedy, I bought more of the 55's. I actually still had a profit for a couple of days. But then the stock corrected and I lost out and option price hit my stop loss target . At least I put in a stop loss! Otherwise, this was a Dumb Dumb Dumb trade and I threw away money.
Remember to follow your rules. If they don't work, change them. But you can't blame losses on the rules when you don't follow them!
My next blog will be to talk about education of options.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
How many of you decided that making an investment or trade before finding out all the information you are supposed to or not following your rules?
I did recently and it kicked my butt!
I was following Electronic Arts (www.ea.com) for an options trade. In the middle of Feburary, I noticed a wedge forming and settling at $50.00. I thought over the weekend that whichever way it moves, I'm going that way.
That weekend there was a positive story in Barron's about the company and the stock appropriately shot up (see chart below). There was a big move with a lot of volume. So I bought the March 55 calls. Bad move. It was bad because I didn't take a look at resistance at the 53-54 range. The calls were out of the money. I'm not kidding you when I say that one of my rules is to buy in the money calls or puts only. I could have bought the 50's, but being greedy, I bought more of the 55's. I actually still had a profit for a couple of days. But then the stock corrected and I lost out and option price hit my stop loss target . At least I put in a stop loss! Otherwise, this was a Dumb Dumb Dumb trade and I threw away money.
Remember to follow your rules. If they don't work, change them. But you can't blame losses on the rules when you don't follow them!
My next blog will be to talk about education of options.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
Friday, March 23, 2007
Options
To begin, I would like to say I am a beginner when it comes to investing in options. I currently have one call option open that is going to expire worthless because I didn't follow any rules whatsoever!
That said, I think that investing in options with clear entry and exit points clarified before making the investment is and will continue to be a huge money maker. I have set aside a small portion of my investment account to trade options. I recommend doing plenty of research (reading, seminars, webinars) before you do. Trading options can be very risky. I believe the key is to know your exit points and have a risk to reward ratio that is acceptable to have some lost trades for every winner.
If you are interested in looking at options, optionsxpress (www.optionsxpress.com) has an amazing website. For disclosure purposes, I do have an account with them. Their education section is second to none. They have practice accounts, risk/reward rations, and everything under the sun. They also embody the collaboration movement and are always looking for ways to improve their site. There are also not minimum deposit. They are traders themselves!
All next week I will be blogging about options and why they can be a great revenue generator.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
That said, I think that investing in options with clear entry and exit points clarified before making the investment is and will continue to be a huge money maker. I have set aside a small portion of my investment account to trade options. I recommend doing plenty of research (reading, seminars, webinars) before you do. Trading options can be very risky. I believe the key is to know your exit points and have a risk to reward ratio that is acceptable to have some lost trades for every winner.
If you are interested in looking at options, optionsxpress (www.optionsxpress.com) has an amazing website. For disclosure purposes, I do have an account with them. Their education section is second to none. They have practice accounts, risk/reward rations, and everything under the sun. They also embody the collaboration movement and are always looking for ways to improve their site. There are also not minimum deposit. They are traders themselves!
All next week I will be blogging about options and why they can be a great revenue generator.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
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