Hey
There are 31 trading days left and the stock is still well above the strike price. The interesting thing is that the option's time value of the option is actually on the decline and actually below what I paid for it even though the stock has rocketed past the strike price of the stock. That is not to say that the option itself is below, just the time value of the option is. This didn't happen with the previous trade (HGSI) until late in the strike month. But the time value was higher when this trade was originated so maybe this is the normal level.
There will be new product info in the next two months or so I have read on other blogs/posts. The chart is a little unpredictable give the jump in the last week. But it looks like the trade is still in very good shape.
This type of trade is what the account is looking for. If a stock can be found with an unusually large time value attached to its options, the account will look to exploit that. Stocks like this not only provide an indication of bullish sentiment, but they also provide the seller with an added risk premium not usually seen in other stocks. This added premium received is where the account will create its revenue and quicken its size overall.
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
Thursday, July 30, 2009
Friday, July 24, 2009
profit range reached
Hey
The second trade has reached past the strike price. There are eight weeks until expiration or assignment (September 18) so there is still plenty of time for the stock price to go back below the strike price. The option price is still carrying a high time value.
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
The second trade has reached past the strike price. There are eight weeks until expiration or assignment (September 18) so there is still plenty of time for the stock price to go back below the strike price. The option price is still carrying a high time value.
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
Monday, July 20, 2009
New trade
Hey
There has been a new trade this week (Monday.) A company was found that had a September call within range that allows a profit of 11% if the shares get assigned and almost 20% if the shares don't reach the strike price and don't get assigned. The chart shows a bullish trend. The options activity is also bullish. The company has some new products coming in the next couple of months that should keep a bullish sentiment throughout the trade. Armed with this information, it was decided to buy the shares and sell calls against the shares.
The one thing I have noticed with the last trade of HGSI (links below) and this one is that there has yet to be a trade that can end in one month and still guarantee a profit. This is due to capital levels of the account. It will take the ability to buy more contracts to handle the effects of the trading costs.
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
HGSI 1, HGSI 2, HGSI 3, HGSI 4, HGSI 5, HGSI 6, HGSI 7, HGSI 8, HGSI 9
There has been a new trade this week (Monday.) A company was found that had a September call within range that allows a profit of 11% if the shares get assigned and almost 20% if the shares don't reach the strike price and don't get assigned. The chart shows a bullish trend. The options activity is also bullish. The company has some new products coming in the next couple of months that should keep a bullish sentiment throughout the trade. Armed with this information, it was decided to buy the shares and sell calls against the shares.
The one thing I have noticed with the last trade of HGSI (links below) and this one is that there has yet to be a trade that can end in one month and still guarantee a profit. This is due to capital levels of the account. It will take the ability to buy more contracts to handle the effects of the trading costs.
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
HGSI 1, HGSI 2, HGSI 3, HGSI 4, HGSI 5, HGSI 6, HGSI 7, HGSI 8, HGSI 9
chart of hgsi (forget today's activity)
Here is the chart for HGSI. Not counting today's trade (wowm by the way,) the trade stayed consistent. Now it is on to the next trade.This chart was provided by Optionsxpress. Thanks to them, Yahoo!, Bloomberg, CNBC, and other news sources.
Thursday, July 16, 2009
Payday!!!!
Hey everyone
The stock ended Friday above the strike price and therefor the shares have been assigned.
HGSI - Human Growth Sciences Inc.
I bought the stock at $1.99 (not telling the number of shares) and sold the July 2.50 calls (not telling how many contracts) for $0.25. Currently, the stock is over $3.50. This means the shares will be assigned to whomever purchased the calls. I did write calls on all the shares I bought.
The stock ended Friday above the strike price and therefor the shares have been assigned.
HGSI - Human Growth Sciences Inc.
I bought the stock at $1.99 (not telling the number of shares) and sold the July 2.50 calls (not telling how many contracts) for $0.25. Currently, the stock is over $3.50. This means the shares will be assigned to whomever purchased the calls. I did write calls on all the shares I bought.
Saturday, July 11, 2009
One Week to go....
Hey
The stock is 3 cents over the call price so anything is possible. There was some positive news on one of the company's products. But it didn't move the stock at all. There is supposed to be some big news regarding another product of the company July 20th. There was not any action analyst wise. Technically, the stock postitioned itself to be a nail biter for all option holders/sellers. The price of the call has 10 - 15 cents of time value left which is still fairly high for one week left before expiration.
The expectation is that the time value will disappear by Tuesday. The call price will track the stock price if the stock is above the call strike price.
As of right now, if the stock stays above the strike price, the shares will be assigned and the profit on the trade will be 15%. If the stock falls below the strike price, I will plan to hold onto the stock and sell the August call, which are trading at 75 - 90 cents.
The experience this trade has given will help find the next trade. There will be a much larger blog after the trade is finished next week.
Talk to you next week!
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
The stock is 3 cents over the call price so anything is possible. There was some positive news on one of the company's products. But it didn't move the stock at all. There is supposed to be some big news regarding another product of the company July 20th. There was not any action analyst wise. Technically, the stock postitioned itself to be a nail biter for all option holders/sellers. The price of the call has 10 - 15 cents of time value left which is still fairly high for one week left before expiration.
The expectation is that the time value will disappear by Tuesday. The call price will track the stock price if the stock is above the call strike price.
As of right now, if the stock stays above the strike price, the shares will be assigned and the profit on the trade will be 15%. If the stock falls below the strike price, I will plan to hold onto the stock and sell the August call, which are trading at 75 - 90 cents.
The experience this trade has given will help find the next trade. There will be a much larger blog after the trade is finished next week.
Talk to you next week!
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
Friday, July 3, 2009
2 weeks to go...
Well, this week the time value of the option disappeared in a day. The reason for this is due to a press release saying a product test result will not be released until after the expiration date.
The stock is still above the the call price and now there are ten trading days until expiration. It seems to be pushing up against some resistence. The fact that news on the product test won't come out until later provides an indication that the stock could come down a bit while waiting. But the option time value in the price has reached a level that is below the time value when the call was purchased.
The Market Makers will probably try to take the stock down before expiration. They were not able to do it for June. But we'll see for this month.
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
The stock is still above the the call price and now there are ten trading days until expiration. It seems to be pushing up against some resistence. The fact that news on the product test won't come out until later provides an indication that the stock could come down a bit while waiting. But the option time value in the price has reached a level that is below the time value when the call was purchased.
The Market Makers will probably try to take the stock down before expiration. They were not able to do it for June. But we'll see for this month.
-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.
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