Monday, December 31, 2007

Week 1 Update 1

Today was an inverted trading day so the bad sectors decided to go up and the good sectors stayed down. But the day wasn't too bad only a 1.88 percent loss or -$178 in the portfolio (Extremely small in options trading). Some stocks actually hit their targets earlier in trading day BUT I did not place sell stops and I was asleep so I missed out on my selling opportunities , lesson learned. (ASR) actually hit the target of 20 percent while I was awake, but my trading platform froze so i couldn't exit. (CUZ) at one time was down -23 percent but i didn't exit. (AMZN) was up about 2 percent at 2:00 ET. I have not sold any positions, but I might need to sell (CUZ) and NFS to get into less volatile industries.
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So my portfolio reads

(ACC) +6.25%
(AMZN) -7.94%
(ASR) +5.56%
(CUZ) -2.78%
(NFS) -17.55%(Don't panic plenty of time)
(THQI) -4.35%
(WRI) +5.47%
total portfolio -1.88 ($178.50)



ACC In ACC all that is needed is a 1 point decline to 25.83 this produces a profit of 27 percent, 7 percent over the needed 20 percent. I picked Acc because the sector it is in ( REIT- Residential) is performing poorly, and the chart for ACC indicates it is headed lower. amzn In amzn we’re looking for a 2 point rise to generate the target profit of 20 percent. I put amzn in my portfolio because of the protection it should provide to the upside. Asr Since im bullish on asr I purchased the jan 08 60(strike price) calls (ASPRAL). All that I need, is a one point rise in asr to 61.76, which would produce a profit of 26 percent. There is resistance at 61.11 which might make the trip to 61.76 tough. I picked asr because I have so many bearish positions I need a slight hedge that will protected me on the upside.The industry group asr is in (air services), is performing well. Its approaching highs for the year. cuz All that is needed is a half point move down which would produce a profit of 27 percent (since the dela of the option is -.58 this means a 1 point drop would increase the value of the option .58 points since the option is only worth 1.05 that would put us at 55 percent all we need is 20 percent, so I used half a point which would make it .28 points gained for a half point move down. That would put the profit at 27 percent closer to the goal of 20 percent). So the target price goal is 21.53. I picked CUZ because it’s a lousy stock in a lousy sector(REIT-Diversified) as the stock charts will show, this made it a great candidate to buy puts (short). NFS NFS needs a 1 point decline to gain 23 percent in value so the target price is 43.53. But there is a slight obstacle NFS needs to get that 1 point decline quickly because the Theta of the put is .05 so it the stock hasn’t moved by the end of the week the option will still lose 11 percent of its value. I like NFS as a short (put) candidate because NFS is trending lower, and the Life Insurance industry (the group NFS is in) is weakening Thqi Thqi only needs a half point decline, but a 1 point decline would generate a profit of 50 percent. The half point decline will generate a profit of 25 percent. The target price for thqi is 27.77 Thqi is a great candidate to buy puts on because it’s a wakening stock in a wakening industry (multimedia/graphics software) Wri In wri a one-point decline gives a profit of 28 percent (use the ask price 3.50) so the target price becomes 30.92. trading addiction, trading addict, stock market blogs, finance, s&p trading, stock options, technical analysis,swing trading, andre v banks, how to make money, stock websites, free stock picks, stock charts, stock news, stock info, stock market for beginners, Stock Investing Game, How to Invest in the Stock Market, Free Stock Investing, Stock Simulator, Vitual Stock Market, Learn About the Stock Market, Investing Stock 101, Learn to Trade Stocks, Game Stock Trading, Stock Market Education
This blog is dedicated to proving free quality stock picks from using technical analysis and with the help of options to provide more profit potential Finance, stock market, money, trading, stock trading, technical analysis ACC In ACC all that is needed is a 1 point decline to 25.83 this produces a profit of 27 percent, 7 percent over the needed 20 percent. I picked Acc because the sector it is in ( REIT- Residential) is performing poorly, and the chart for ACC indicates it is headed lower. amzn In amzn we’re looking for a 2 point rise to generate the target profit of 20 percent. I put amzn in my portfolio because of the protection it should provide to the upside. Asr Since im bullish on asr I purchased the jan 08 60(strike price) calls (ASPRAL). All that I need, is a one point rise in asr to 61.76, which would produce a profit of 26 percent. There is resistance at 61.11 which might make the trip to 61.76 tough. I picked asr because I have so many bearish positions I need a slight hedge that will protected me on the upside.The industry group asr is in (air services), is performing well. Its approaching highs for the year. cuz All that is needed is a half point move down which would produce a profit of 27 percent (since the dela of the option is -.58 this means a 1 point drop would increase the value of the option .58 points since the option is only worth 1.05 that would put us at 55 percent all we need is 20 percent, so I used half a point which would make it .28 points gained for a half point move down. That would put the profit at 27 percent closer to the goal of 20 percent). So the target price goal is 21.53. I picked CUZ because it’s a lousy stock in a lousy sector(REIT-Diversified) as the stock charts will show, this made it a great candidate to buy puts (short). NFS NFS needs a 1 point decline to gain 23 percent in value so the target price is 43.53. But there is a slight obstacle NFS needs to get that 1 point decline quickly because the Theta of the put is .05 so it the stock hasn’t moved by the end of the week the option will still lose 11 percent of its value. I like NFS as a short (put) candidate because NFS is trending lower, and the Life Insurance industry (the group NFS is in) is weakening Thqi Thqi only needs a half point decline, but a 1 point decline would generate a profit of 50 percent. The half point decline will generate a profit of 25 percent. The target price for thqi is 27.77 Thqi is a great candidate to buy puts on because it’s a wakening stock in a wakening industry (multimedia/graphics software) Wri In wri a one-point decline gives a profit of 28 percent (use the ask price 3.50) so the target price becomes 30.92. trading addiction, trading addict, stock market blogs, finance, s&p trading, stock options, technical analysis,swing trading, andre v banks, how to make money, stock websites, free stock picks, stock charts, stock news, stock info, stock market for beginners, Stock Investing Game, How to Invest in the Stock Market, Free Stock Investing, Stock Simulator, Vitual Stock Market, Learn About the Stock Market, Investing Stock 101, Learn to Trade Stocks, Game Stock Trading, Stock Market Education
This blog is dedicated to proving free quality stock picks from using technical analysis and with the help of options to provide more profit potential Finance, stock market, money, trading, stock trading, technical analysis ACC In ACC all that is needed is a 1 point decline to 25.83 this produces a profit of 27 percent, 7 percent over the needed 20 percent. I picked Acc because the sector it is in ( REIT- Residential) is performing poorly, and the chart for ACC indicates it is headed lower. amzn In amzn we’re looking for a 2 point rise to generate the target profit of 20 percent. I put amzn in my portfolio because of the protection it should provide to the upside. Asr Since im bullish on asr I purchased the jan 08 60(strike price) calls (ASPRAL). All that I need, is a one point rise in asr to 61.76, which would produce a profit of 26 percent. There is resistance at 61.11 which might make the trip to 61.76 tough. I picked asr because I have so many bearish positions I need a slight hedge that will protected me on the upside.The industry group asr is in (air services), is performing well. Its approaching highs for the year. cuz All that is needed is a half point move down which would produce a profit of 27 percent (since the dela of the option is -.58 this means a 1 point drop would increase the value of the option .58 points since the option is only worth 1.05 that would put us at 55 percent all we need is 20 percent, so I used half a point which would make it .28 points gained for a half point move down. That would put the profit at 27 percent closer to the goal of 20 percent). So the target price goal is 21.53. I picked CUZ because it’s a lousy stock in a lousy sector(REIT-Diversified) as the stock charts will show, this made it a great candidate to buy puts (short). NFS NFS needs a 1 point decline to gain 23 percent in value so the target price is 43.53. But there is a slight obstacle NFS needs to get that 1 point decline quickly because the Theta of the put is .05 so it the stock hasn’t moved by the end of the week the option will still lose 11 percent of its value. I like NFS as a short (put) candidate because NFS is trending lower, and the Life Insurance industry (the group NFS is in) is weakening Thqi Thqi only needs a half point decline, but a 1 point decline would generate a profit of 50 percent. The half point decline will generate a profit of 25 percent. The target price for thqi is 27.77 Thqi is a great candidate to buy puts on because it’s a wakening stock in a wakening industry (multimedia/graphics software) Wri In wri a one-point decline gives a profit of 28 percent (use the ask price 3.50) so the target price becomes 30.92. trading addiction, trading addict, stock market blogs, finance, s&p trading, stock options, technical analysis,swing trading, andre v banks, how to make money, stock websites, free stock picks, stock charts, stock news, stock info, stock market for beginners, Stock Investing Game, How to Invest in the Stock Market, Free Stock Investing, Stock Simulator, Vitual Stock Market, Learn About the Stock Market, Investing Stock 101, Learn to Trade Stocks, Game Stock Trading, Stock Market Education
This blog is dedicated to proving free quality stock picks from using technical analysis and with the help of options to provide more profit potential Finance, stock market, money, trading, stock trading, technical analysis ACC In ACC all that is needed is a 1 point decline to 25.83 this produces a profit of 27 percent, 7 percent over the needed 20 percent. I picked Acc because the sector it is in ( REIT- Residential) is performing poorly, and the chart for ACC indicates it is headed lower. amzn In amzn we’re looking for a 2 point rise to generate the target profit of 20 percent. I put amzn in my portfolio because of the protection it should provide to the upside. Asr Since im bullish on asr I purchased the jan 08 60(strike price) calls (ASPRAL). All that I need, is a one point rise in asr to 61.76, which would produce a profit of 26 percent. There is resistance at 61.11 which might make the trip to 61.76 tough. I picked asr because I have so many bearish positions I need a slight hedge that will protected me on the upside.The industry group asr is in (air services), is performing well. Its approaching highs for the year. cuz All that is needed is a half point move down which would produce a profit of 27 percent (since the dela of the option is -.58 this means a 1 point drop would increase the value of the option .58 points since the option is only worth 1.05 that would put us at 55 percent all we need is 20 percent, so I used half a point which would make it .28 points gained for a half point move down. That would put the profit at 27 percent closer to the goal of 20 percent). So the target price goal is 21.53. I picked CUZ because it’s a lousy stock in a lousy sector(REIT-Diversified) as the stock charts will show, this made it a great candidate to buy puts (short). NFS NFS needs a 1 point decline to gain 23 percent in value so the target price is 43.53. But there is a slight obstacle NFS needs to get that 1 point decline quickly because the Theta of the put is .05 so it the stock hasn’t moved by the end of the week the option will still lose 11 percent of its value. I like NFS as a short (put) candidate because NFS is trending lower, and the Life Insurance industry (the group NFS is in) is weakening Thqi Thqi only needs a half point decline, but a 1 point decline would generate a profit of 50 percent. The half point decline will generate a profit of 25 percent. The target price for thqi is 27.77 Thqi is a great candidate to buy puts on because it’s a wakening stock in a wakening industry (multimedia/graphics software) Wri In wri a one-point decline gives a profit of 28 percent (use the ask price 3.50) so the target price becomes 30.92. trading addiction, trading addict, stock market blogs, finance, s&p trading, stock options, technical analysis,swing trading, andre v banks, how to make money, stock websites, free stock picks, stock charts, stock news, stock info, stock market for beginners, Stock Investing Game, How to Invest in the Stock Market, Free Stock Investing, Stock Simulator, Vitual Stock Market, Learn About the Stock Market, Investing Stock 101, Learn to Trade Stocks, Game Stock Trading, Stock Market Education
This blog is dedicated to proving free quality stock picks from using technical analysis and with the help of options to provide more profit potential Finance, stock market, money, trading, stock trading, technical analysis

2 comments:

OptionPundit said...

Hi Andre,

Happy New Year!

It was a fine day looking at the way markets behaved and 1.88% loss is not so big if you factor SV in perspective.

As you are developing this blog and there are many who can learn from your trades, I think a good idea may be to define your exit points as well. Do you want to keep a strict 20%, or xyz % up in so many days and then no more holding, or if the stock hits such and such points, you are out...,etc. Though you are looking at Delta as one of the key points, IV will also play important role (not as much as delta and gamma though)....

Profitable trading, OP

52weekHi said...

Thanks for the advice, I'll try to be more specific on the entry points as suggested.


I'll probably want a strict 20% and out approach

Implied volatility is a consideration I take into account when I make my trades i'll try to go a little bit more in depth with that and all the greeks as well