Monthly Archives: May 2011

Weekly trading summary and account update

Posted on May 15, 2011 by admin

The past week was, again, profitable.  Our 3 spreads trades were all successful (NFLX, PCLN and LVS).  This week’s investment return is 8.3% for the trading account.  The total return for this trading account for the last 7 weeks is … Continue reading →

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PCLN was a bit scary today.

Posted on May 12, 2011 by admin

Glad to see the market first fell, then recovered and gained by closing, confirming that the market is trading in a range.  Especially of interest today is PCLN, falling to as low as 515. My setup of PCLN spread was … Continue reading →

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Why covered calls?

Posted on May 12, 2011 by admin

I use covered calls as my main trading strategy.  I do so for several reasons. Steady profit Less risky than owning stocks alone Guaranteed profit from premium selling. What is a Covered call?  Covered call means that you buy certain … Continue reading →

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Falling market today.

Posted on May 11, 2011 by admin

The market is fluctuating (as expected).  SP500 is ~1340, the support line.  So far today, the market lost what it gained in the past 2 days.  This is not surprising.  The most likely scenario is that the market trades in … Continue reading →

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PCLN, NFLX & LVS spreads

Posted on May 10, 2011 by admin

Today, I set up several spreads: PCLN: long weekly 510 put, short weekly 515 put, net credit: $.6/spread.  This is a bit riskier than the 500/505 spread.  Due to low volume, I couldn’t get 500/505 nor 505/510 spreads.  The 510/515 … Continue reading →

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Next Week’s Trading Prospects

Posted on May 8, 2011 by admin

Several possible trades to consider: PCLN, 50 day SMA is 500.  PCLN has almost never fallen below 50 SMA, except during the flash crash.  A spread of 495/500 carries a relatively low risk.  Long 495 May 13 put, short 500 … Continue reading →

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Market Condition: Neutral to Slightly Bullish

Posted on May 7, 2011 by admin

ChartAdvisor.com: The market is near oversold, but is still in an uptrend. Time to look for opportunities.  When placing trades, we may set up neutral to mildly bullish trades (i.e., using slightly in the money or at the money strikes). … Continue reading →

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Weekly Summary

Posted on May 6, 2011 by admin

All our spreads of this week were successful.  We made $30/contract on FFIV, $32.22/contract on NFLX.  As a result, this trading account that was started only 6 weeks ago (3/25/11) has increased its portfolio value by 50%. The main trading … Continue reading →

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Several stocks are close to our strike prices.

Posted on May 4, 2011 by admin

The markets are experiencing some profit taking and consolidations after a very nice bull run.  Several issues are approaching our strike price.  These include OPEN, NFLX, FFIV and LVS. OPEN: We started a position on OPEN on 3/21/11 with a … Continue reading →

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