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)

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!

 

“Short” Explained Cont… Closed NFLD @ $2

dtc 14 September, 2007 14:31 Executed Trades, Educational Materials, Trading Notes Permalink Trackbacks (0)

NFLD hit my stop-lose @ $2.00 today and so, my trade trigger bought it back @ $2.00.  Now, let’s review the trade.

I shorted it @ $1.85 as I speculate that it will continue its way south but instead going south, it bounced, headed north and broke thru $2.00 per share.  As I have my stop-loss set @ $2.00, I follow my trading plan and bought it back @ $2.00.  So, by the time I got out of the position, I have the total realized lost of $810.75. 

I bought high (@2.00) and sold low (@1.85).  In this trade, I sold it before I have the stock, then I just bough it back to cover.

 


Short 5405 Shares Of NFLD

dtc 14 September, 2007 09:46 Executed Trades Permalink Trackbacks (0)

short 5405 shares of NFLD @ $1.85/share

been watching this stock for months now, the company's only product isn't going any where.

Target $1.60
Stop lose @ $2.00


Closed BABT.X + BANS.X

dtc 12 September, 2007 22:19 Executed Trades Permalink Trackbacks (0)

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.

$$$$$$$$$$$


Closed EUQDI.X + EUQPF.X

dtc 06 September, 2007 06:26 Executed Trades Permalink Trackbacks (0)

EUQDI.X & EUQPF.X hit my target and I closed EUQDI.X @ $3.27 and EUQPF.X @ $1.95

 So by closing these positions, I now have a total realized gain of $4,100!


Long 100 BABT.X + Short 100 BANS.X

dtc 05 September, 2007 06:54 Executed Trades Permalink Trackbacks (0)

Long 100 contracts BABT.X (BA Feb 08 $100 call) @ 5.50.  The total cost of this call is $55,000

Short 100 contracts BANS.X (BA Feb 08 $95 put) @ 6.20.  The total premium collected from this put is $62,000

the total cost of construct this bull fence is -$7,000 which means I made $7,000.

My avaiable cash is now $29,500 and I have 4 open positions.


Long 50 EUQDI.X + Short 50 EUQPF.X

dtc 04 September, 2007 16:34 Executed Trades Permalink Trackbacks (0)

Long 50 EUQDI.X & Short 50 EUQPF.X

Here goes the long waited first trade!

This strategy is known as the bull fence strategy.  I use this strategy as I speculate the price of CIEN is heading north!

Long 50 EUQDI.X (CIEN Apr08 $45 call) @ 2.85
The total cost for this call is: $14,250

Short 50 EUQPF.X (CIEN Apr08 $30 put) @ 2.35
Total premium collected from this put is: $11,750

The total cost of construct this bull fence is $2,500

So, my available cash at the end of this trade is $22,500

p. –s. for the sake of accounting purpose for this paper trading phase, I will not be worrying about any commission fee associated with trading.

Oh, here is my secret options trading strategies cheat sheet that I started to use when first traded options, it's worth sharing, click on it to see it in its original size.  Enjoy

Options Trading Cheat Sheet 

I made this cheat sheet up myself :-)


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.

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