Monday, December 31, 2012
Thursday, December 27, 2012
Wednesday, December 26, 2012
Monday, December 24, 2012
I was so psyched to discover the beauty of short puts - totally thought they were the best thing since 9FM. I started the month by anticipating four figure gains if all the put options I shorted were to expire. I now have Level III trading capabilities on my Roth IRA and Level II on my regular brokerage account.
I was able to close out two short put positions on substantial gains before expiry:
JRCC @ $0.30 gain on $2.50 put = +12% gross
TC @ $0.90 on $4 put = +22.5% gross
Only one position expired with gains:
ALXA @ $0.50 gain on $4 put = +12.5% gross
Two positions with early assignments were closed out @ market with losses more or less equal to commissions plus a few cents per share here or there:
Two assignments on expiry, unfortunately leading to substantial unrealised losses in my portfolio, which I'll attempt to fix with covered calls:
FOLD @ unrealised -43%
DRYS @ unrealised -9%
Long BAC (closed out partial position @ +$1.1233 per share or +11.86% gross)
Long AMD @ unrealised +15% gain
Long PES (closed out two positions @ aggregate per share gain of $0.8086)
Long PKD @ unrealised -2%
Long CENX from way back in 2011 @ unrealised -26%
Long HWD from way back in 2011 @ unrealised -9%
Long MFG ditto @ unrealised -9%
Long NMR ditto @ unrealised -8%
In the process, my cash balances grew and my portfolio value became respectable, especially my Roth IRA.
October to December 2012 growth @ +18.7% on Roth IRA - partially due to an up-trending market and partially due to my own efforts...
I'm excited about trading again, but I'm also worried about how I'll grow my portfolio next year.
If Santa is hearing this, I'm wishing for sustainable market strategies that will allow me to make more money on less risk and even if I get stuck in a losing position, I'll trade myself out with financial dignity...
Merry Christmas, Professors of Finance - especially the Masters of the Universe ones with dark-framed glasses...
No typo... I did it again...
Turns out the first time was the right time...
Thank God I realised in time...
Friday, December 21, 2012
Thursday, December 20, 2012
There's no way my 'buy close' @ $0.35 will be executed as it's now trading at $1.65... I definitely won't be going out via the options route.
Luckily, I haven't been assigned yet and the underlying security price is at around $3.14, down about -45.58%. In options terms, the loss is far greater at over -420%...
I'm waiting to get assigned and will plot my exit when the time comes.
No? -50.43% in Extended Hours Trading??
Straight from Dow Jones: "Amicus Therapeutics shares fell after the company said a late-stage study of its lead drug candidate, migalastat HCI, intended to treat the rare disease Fabry, didn't meet its primary goal, dashing hopes for a near-term approval by U.S. regulators. The stock was down 52% to $2.76 in after-hours trading."
Placed a 'buy close' order @ $0.35, but don't know if I'll get executed tomorrow.
Wednesday, December 19, 2012
Hoping it will expire worthless...
Current market price circa $5.70...
If I get assigned, my purchase price would be $4.70.
If options expire, premium collection would be 6% ROI on locked up capital.
P.S. Ascending triangle formation on 5-day chart...
Tuesday, December 18, 2012
Net profit of $0.90...
Again, would have made more money with a long stock position, but the beauty of options is you get the money upfront.
In a margin account, this would increase your buying power, but I'm not buying on margin, so it doesn't affect me.
Wednesday, December 12, 2012
PKD has more revenues than HERO and is losing less money.
P/S and P/B both below 1...
News announcement today that it just began drilling in the Arctic with first of two arctic Alaska drilling units, which indicates sales growth potential...
Fed sets jobless, inflation targets...
Monthly NFPs have averaged 170,000 over the past twelve months and we saw about a 1% dip in unemployment during this time, which means we need to create another 2.04 million jobs to reach the Fed's 6.5% unemployment rate target.
With GDP growth expected to dip to 1.9%, could we see another 12 months of 0% interest rates - or will this story extend into 2014 and beyond?
Full FOMC Statement...
Friday, December 7, 2012
ZQK ended the day +4.74% and about $0.14 above my exit. In hindsight, I could have converted my open position in ZQK to a covered call.
If I get assigned again, I'm most likely going to implement a covered call as my exit strategy.
That was 'Quick'...
Earnings announcement is 13 December 2012 rather than 10 December 2012...