Hey everyone
Happy Friday! I have added more capital to the account today.
Also, capital was added when the call premium was received.
- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock 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, September 25, 2009
Tuesday, September 22, 2009
Third Trade
Hey everyone
The account executed a trade with the same stock as the previous trade. The account sold the November calls against the stock it currently holds. The reasons for the trade are as follows:
- The revenue received from selling the call knocked down the cost of shares on the trade and increased the overall profit. This has created a situation where the overall cash holdings of the company currently are more than the cost basis for this trade. This provides a high level (not perfect) of protection for the trade.
- The cost of the trade was decreased since the action of purchasing new shares was not required
- Product development results are expected to be released before option expiration creating an opportunity for the stock to appreciate to and past the strike price
- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock 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 account executed a trade with the same stock as the previous trade. The account sold the November calls against the stock it currently holds. The reasons for the trade are as follows:
- The revenue received from selling the call knocked down the cost of shares on the trade and increased the overall profit. This has created a situation where the overall cash holdings of the company currently are more than the cost basis for this trade. This provides a high level (not perfect) of protection for the trade.
- The cost of the trade was decreased since the action of purchasing new shares was not required
- Product development results are expected to be released before option expiration creating an opportunity for the stock to appreciate to and past the strike price
- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock 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, September 18, 2009
Most recent trade
Hey
Below are the posts on the second and most recent trade.
The account purchased this stock at 2.35 and sold the September 2.50 call for .40 after commissions. As you will read in the posts, the stock shot up to past $5.00 but came down after a government product trial did not go the company's way. It is now sitting in the $2.00 range. The account will plan to look at what the November option price is before selling. The December option does hold some decent value. It would be better if we could squeeze out some value in the November time frame as the account continues to grow its capital base.
Trade 2 #1, Trade 2#2, Trade 2#3, Trade 2#4, Trade 2#5, Trade 2#6, Trade 2#7, Trade 2 #8, Trade 2#9
Below are the posts on the second and most recent trade.
The account purchased this stock at 2.35 and sold the September 2.50 call for .40 after commissions. As you will read in the posts, the stock shot up to past $5.00 but came down after a government product trial did not go the company's way. It is now sitting in the $2.00 range. The account will plan to look at what the November option price is before selling. The December option does hold some decent value. It would be better if we could squeeze out some value in the November time frame as the account continues to grow its capital base.
Trade 2 #1, Trade 2#2, Trade 2#3, Trade 2#4, Trade 2#5, Trade 2#6, Trade 2#7, Trade 2 #8, Trade 2#9
Thursday, September 17, 2009
same stock....new call
Hey everyone
The account has made the decision to keep the stock and sell another call. The stock stayed within profitable parameters. There are calls two months out that are currently profitable. The drop in the cost basis for the stock will now allow for a greater profit overall. The prospects of upcoming products has the account feeling the stock has upside potential.
Upcoming events for the call account:
- Which call was sold
- Description of previous trade
- upcoming capital infusion dates
- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock 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 account has made the decision to keep the stock and sell another call. The stock stayed within profitable parameters. There are calls two months out that are currently profitable. The drop in the cost basis for the stock will now allow for a greater profit overall. The prospects of upcoming products has the account feeling the stock has upside potential.
Upcoming events for the call account:
- Which call was sold
- Description of previous trade
- upcoming capital infusion dates
- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock 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, September 11, 2009
One week to expiration, more capital added
Hey everyone
The account just added capital to the account. This will help increase the number of trades that can be made in the future.
The current trade is likely to expire next Friday. That means the option will expire and the account will be left with the shares alone. Right now that is a good situation because the shares are trading in a position that still leaves the account with a profit even though it did not surpass the strike price. I am looking at the following month's options to sell. This will provide more income to the account.
- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock 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 account just added capital to the account. This will help increase the number of trades that can be made in the future.
The current trade is likely to expire next Friday. That means the option will expire and the account will be left with the shares alone. Right now that is a good situation because the shares are trading in a position that still leaves the account with a profit even though it did not surpass the strike price. I am looking at the following month's options to sell. This will provide more income to the account.
- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock 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.
Wednesday, September 9, 2009
same stock, new option?
Hey
It looks like the option will expire worthless. There are seven trading days left and the stock is well under the strike price. But it is still a profitable trade if you include the call revenue. If the stock stays below the stop loss level, the account will probably sell more options on this stock after the current ones expire. The account has noticed some considerable time value in the coming month's options that keep the thought of stock appreciation in mind. This is not normally the case. Normally, if a stock falls like this one has, the time value on the stock's options dry up like a desert. But this stock hasn't. The trading activity for the next couple of week's will show where the stock is headed. It is definitely banging against some support levels trying to get through.
- As always, I do not fully divulge information on companies that have trades open. When the trade on a particular stock 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.
It looks like the option will expire worthless. There are seven trading days left and the stock is well under the strike price. But it is still a profitable trade if you include the call revenue. If the stock stays below the stop loss level, the account will probably sell more options on this stock after the current ones expire. The account has noticed some considerable time value in the coming month's options that keep the thought of stock appreciation in mind. This is not normally the case. Normally, if a stock falls like this one has, the time value on the stock's options dry up like a desert. But this stock hasn't. The trading activity for the next couple of week's will show where the stock is headed. It is definitely banging against some support levels trying to get through.
- As always, I do not fully divulge information on companies that have trades open. When the trade on a particular stock 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.
Saturday, September 5, 2009
A difference a day makes.....
Hey everyone
Well, the stock fell below the stock price on a bad government review of one of the company's products. There are two weeks left before expiration. There doesn't seem to be any more news scheduled for the company until then. So the stock is kind of in the hands of the major traders for now. The positive thing is that it did not fall as far as I thought it would and actually is still in profitable territory for the trade. There is a floor for the stock. This means that if the stock falls to this level, a sell order for the stock will be executed.
Some thought on what to do is ahead as there will some options coming up once expiration date comes. What is meant by that is there will be a choice of buying more shares of the company and selling more calls or selling the shares and looking for another company's stock to trade.
Now is a good reminder that the account is just getting started and that there will be trades that are not profitable. Normally the best thing to do in that manner is to just sell the trade and find another.
-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.
Well, the stock fell below the stock price on a bad government review of one of the company's products. There are two weeks left before expiration. There doesn't seem to be any more news scheduled for the company until then. So the stock is kind of in the hands of the major traders for now. The positive thing is that it did not fall as far as I thought it would and actually is still in profitable territory for the trade. There is a floor for the stock. This means that if the stock falls to this level, a sell order for the stock will be executed.
Some thought on what to do is ahead as there will some options coming up once expiration date comes. What is meant by that is there will be a choice of buying more shares of the company and selling more calls or selling the shares and looking for another company's stock to trade.
Now is a good reminder that the account is just getting started and that there will be trades that are not profitable. Normally the best thing to do in that manner is to just sell the trade and find another.
-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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