Lucky Speculator

Shorted 5 CHLIN @ 4.5 And 5 FREJB @ 3.8

dtc 23 July, 2008 14:11 Executed Trades, Options Permalink Trackbacks (0)

I traded out of my CHLIN & FREJB positions for quick gains as I planned. My total cash value was at $4,186.85, a 29% gain from yesterday and just $55 away from this week's goal: $4241.86. Trying to archive the goal, I went long on FREVB @ 2.9, 10 contracts total. As soon as the order got filled, I put in an order to short all 10 of FREVB @ 3.10 and the order is now pending execution.

If you don't already aware of this, options trading in this volatile market could be very "exciting". I could have 30% gain in one day and get wiped out the next and my strategy for the past few days was to bet on big price swing. Volatile trading days like this provide more opportunities for options to move in and out the money. And now, I am hoping FRE to move below $10 to push my FREVB to $3.10 so I can cash in.

Let's see how it goes.


Short WMJA @ $1.65 + Long CHLIN @ $3.20

dtc 18 July, 2008 15:41 Executed Trades, Options Permalink Trackbacks (0)

Short 5 contracts of WMJA @ $1.65 + Long 5 contracts of CHLIN @ $3.20

Short 5 contracts of WMJA to close out the position and had a realized gain of $160, a 19% gain.

Long 5 contracts of CHLIN (CHL OCT $70 call) @ $3.20. What are the reasons behind this speculation?

Many years back, Asia was so behind in deploying/adapting wireless device, network and technologies and when the Asian country finally got ready to adapt, they had no baggage with legacy systems and was deploying what was the latest and greatest at the time.  So, whenever I visit Taiwan or Japan, I am always amazed by how advanced their wireless technology is, they had 3G phone years before US and most people has more than one cell phones.  I think China will be no different, China is so behind in communication network even today, most places still don’t even have land line phone available.  It only makes sense that with all kind of wireless technologies available today to just skip the land line and go straight to wireless.  And I think China Mobile Limited (CHL) is well positioned for this ride.

Long 5 Contracts Of WMJA @ $1.33

dtc 17 July, 2008 16:38 Executed Trades, Options Permalink Trackbacks (0)

I put in an order to long 10 contracts of WMJA this am but only 5 got executed and it was executed @ $1.33. 

I don't have any realized gain/lost today, but I do have an unrealized lost.  See below for detail:


Option Trading Provides More Leverage

dtc 16 July, 2008 17:23 Executed Trades, Educational Materials, Options Permalink Trackbacks (0)

No, I don't think options trading is risky at all but again, I never write naked calls or naked puts.

I like to trade options because I can always know for certain what my worst case (risk) is. And since I only trade with my play money, my leisure money, my disposable cash, so even if worst case happens and I have to lose every dime, no big deal. Now granted that the stock trading is pretty much the same way in this regard, but options trading provides me more leverage with the little amount of play money I have.

So, what do I mean by leverage… let's use the order I put in last night as an example:

I put in an order to long 5 contracts of out-the-money Ciena Oct $20 call (+EUQJD) at @ $2.20, it got executed when market open @ $2.15. The call moved in-the-money during the day, so I trade it off (not exercise it) @ $3.10 and had a hadsome realized gain of $525, a 49% gain! That's what I mean by leverage.

Ciena Oct $20 call (+EUQJD)

I Want My FiOS!

dtc 15 July, 2008 23:57 Speculate, Options Permalink Trackbacks (0)

It will take another year or so before I can get FiOS service to my house.  Well, if I can’t get FiOS for another year or so in Columbia Maryland, then to complete the FiOS network build up for entire nation may take a while.

Share price has been dropping for Ciena (Fiber Optic Device maker) for the past few months; I think the company positions itself well in the sector and the current share price is a good buy, so tonight I put in a limit order to purchase 5 contracts of Oct 20 call (+EUQJD) @ $2.20.

Open order for +EUQJD on 07/15/2008


Cut Back On Spending At Costo

dtc 15 July, 2008 13:50 Speculate, Executed Trades, Options, Trading Notes Permalink Trackbacks (0)

So, after have spent 200K on the internet domain name diy.net, my available cash for trading is pretty much limited. And forget about the $2,5000 paper trading game. To make this blog more fun and more active, I am going trade with some real dollars… not much, just whatever I have left in my Ameritrade account, a total of $3,214.30.

With only $3,214.30, I went long on +PRQTN (COST Aug 70 Put) @ $2.65 with total of 5 contract.

To help me visually see how I can gain or lose from this position, I have put together a pike chart below:

 

Why this speculation?

Well, with raising inflation and gasoline price, I had to cut off my spending somewhere hence I have not been to Costo as often as I use to be.

And when I do go, I sure felt price up and goods mix shifted hence I can't find the things I went to buy or at the price I want buy it at.

If you are an average joe then you must feel the same way!

 

Option 101: What Is Option? – Part I

dtc 31 August, 2007 00:13 Options Permalink Trackbacks (0)
An option is the contract that gives the buyer the “right” but not the “obligation” to trade the underlying at a specific price called stike price within a specified period of time called expire date.  This right implies a choice: the buyer can use the option if the buyer wants but the buyer doesn’t have to.  An option is not an obligation. 

There are two kinds of options: call and put:
 

l          A call option gives the buyer the right, but not the obligation, to buy the underlying instrument to the seller of the option at a definite price within a specified period of time.  Calls are purchased by those who think the underlying instrument may go up in price.

 

l          A put option gives the buyer the right, but not the obligation, to sell the underlying instrument to the seller of the option at a definite price within a specified period of time.  Puts are purchased by those who think the underlying instrument may go down in price.

Just like you can go long (buy) or short (sell) the underlying instrument, you can go long or short options. Options can be complex because we have four choices.  See the “Potential Underlying Position” table below. 

　

Long (buy)

Short (sell)

Calls

Has the right to go long

May be obligated to go Short

Puts

Has the right to go short

May be obligated to go Long

Table 1: Potential Underlying Position

  (More)

A Comprehensive Disclaimer!

dtc 13 August, 2007 23:02 Speculate, Executed Trades, Educational Materials, Futures, Options, Stocks, Trading Notes Permalink Trackbacks (0)

So, friends are asking me when I will start my first trade as a lucky speculator, I guess they just can’t wait to see how I lose my $25,000 J

Well, be patient my friends, LuckySpeculator.com is not really ready yet.  For one, I think I might need to put up some kind of disclaimer to make sure I am not legally exposed...  so I googled for some disclaimer and below are some of what I found, make sure you read them before you start reading my blog:

  1. Disclaimer 1: This is not investment advice. Do your own homework before investing in anything.
  2. DISCLAIMER 2: The contents of this blog shall not be construed as giving rise to liability of any kind whatsoever (in particular but not limited to tort and contract). Neither the authors of this blog nor LuckySpeculator.com shall be liable for any damage sustained, suffered or experienced by anyone for anything related to anything in or omitted from LuckySpeculator.com or links to or from it. The venue for resolution of any dispute related to this blog shall be the planet Uranus and the laws applicable, both procedural and substantive, shall be the laws of the planet Uranus  
  3. Disclaimer 3: This is not investment advice. It is merely what one knows nothing is irresponsibly doing with his own money.
  4. Disclaimer 4: Trading stocks involves risk; this information should not be viewed as trading recommendations. The blog articles and charts provided here are not meant for investment purposes and only serve as technical example.

Here are some text I stole from fool.com and modified for my blog, LuckySpeculator.com:

The LuckySpeculator.com does not guarantee the veracity, reliability or completeness of any information provided on LuckySpeculator.com or in any hyperlink appearing on our site. No one could read through the thousands of messages/comments I receive each day, check out all the hyperlinked web sites, and research each one for accuracy. That isn't why I’m here. Nor am I here to give you hot "tips," to make "buy" or "sell" recommendations, or to tell you what to do with your money. I’m here to share my personal investment and finance decisions only, and to have fun.

You are responsible for your own investment decisions. The LuckySpeculator.com will not be responsible for any errors or omissions in articles or postings, for hyperlinks embedded in messages, or for any results obtained from the use of such information. The LuckySpeculator.com will not be liable for any loss or damage caused by a reader's reliance on information obtained in our area, or in a hyperlinked area. If you don't accept this responsibility for yourself, then you should not use The LuckySpeculator.com.

If you ignore my advice to do independent research of industries, companies, and stocks, choosing instead to trade solely on information, "tips," or opinions found in this blog, you have made a conscious, willing, free, and personal decision to do so. You have also probably made a mistake.

As cyberspace develops, the freedom and openness from which we all profit can make us the target of touts, hypesters, and frauds. These people could infect my blog, just as they infect other parts of the world. Please proceed with caution and do your homework. And remember: when you access one of these hyperlinked web sites, you're leaving my area so be wary of those who post hyperlinks to strange web sites.

 

…Well, I think now I am legally protected with all these legal disclaimers.  So, I should start trading soon!!  Stay tune… 
All communications on LuckySpeculator.com are for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy securities, currencies including spot, futures and/or options or any other financial instrument.

LuckySpeculator.com Disclaimer
Any issue or recommendation contained herein may not be suitable for all investors. Moreover, any issue offered herein is not guaranteed or endorsed by LuckySpeculator.com, not FDIC insured and may lose value.
Risk Disclosure
Unique experiences and past performances do not guarantee future results! Testimonials herein are unsolicited and are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading stocks, futures, options and spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.
U.S. Government Required Disclaimer
Commodity Futures Trading Commission. Forex, Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Substantial risk is involved. Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Options markets. Don't trade with money you can't afford to lose. Nothing in our course or website shall be deemed a solicitation or an offer to Buy/sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.

More www.LuckySpeculator.com Disclaimers

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