Well, I followed my trading plan very strictly and didn’t trade on the days I didn’t feel like to and today I traded out of all of my remaining open positions: BABT.X & BANS.X not because I feel like to trade but because these they hit my target!  So, I had to close them.

So, let’s review how I did:

I opened BABT.X & BANS.X positions back on 9/5/2007:

Long 100 BABT.X @ $5.50
Short 100 BANS.X @ $6.20

I closed it with today’s market price by short 100 BABT.X @ $7.00 and by long 100 BANS.X @ $5.20.  So, my realized gains from these two trades are $25,000!

($7.00 - $5.50) * 100 * 100 = $15,000
($6.20 - $5.20) * 100 * 100 = $10,000

Now add the $25,000 gains to my available cash of $29,100, my total available cash is now $54,100.  So far, the ROI is 116% within the last 6 trading days.  Well, not bad at all.  

Now, let’s review what I did in the past 6 days…  if you recall, I construct two bull fences, one for CIENA option and one for Boeing option.  So what is “bull fences” strategy?  Well, I hope you have googled it already and if not, come back tomorrow or so, I will write a paragraph or two on this simple option strategy.

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