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Wednesday, December 23, 2009

3 weeks to expiration

There are three weeks to expiration on the current trade. It is under the strike price. The technical indicators from Optionsxpress and Yahoo Finance for this stock look to be neutral at this point.


- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account 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 the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Capital Added

Capital has been added to the account.

Friday, December 11, 2009

5 weeks to go.....

The stock is back under the strike price; but still above the purchase price. This makes the the call out of the money. The premium of the call is shrinking since there is only time value involved. There are five weeks or 23 trading days left until expiration (January 18.)


- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account 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 the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Wednesday, December 9, 2009

new capital

New capital was added to the account on Monday.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account 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 the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Tuesday, December 8, 2009

trade in the money

The current trade has crossed to "In The Money" status. The company just received positive feedback from a government study on one of their products.

The expiration date for the trade is January 15, 2010. There will be two trading days off during that time (Dec 25 and Jan 1) that lessens the amount of trading days until expiration. Right now we are at 26 trading days left.

-As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account 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 the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Monday, December 7, 2009

ACAD trade

Acadia Pharmaceuticals showed up on the account's Optionsxpress screener after the account finished its trade with Human Genome Services Inc. back in July of 2009. The company showed the very same traits as the HGSI trade. So the account ended up buying 100 shares at $2.34 and then selling the September 2009 $2.50 calls for $0.55. After commissions, the revenue from the call was $40.00.

At first the stock went all the way up past $5.00 per share. But then the news of a drug trial did not go well. This sent the shares down around $2.00. The call expired worthless.

There was a re-evaluation of the stock to see if the account should sell or hold on to the stock and sell another call. The decision was made to keep the stock and sell the November $2.50 call for revenue of $5.00. This brought total revenue of the trade to $45.00.

This did not go well. The stock fell all the way to $1.40 before the call expired. The account eventually sold the stock after the call expired.

The total loss on the trade including commissions of 37%.

Trading Notes on the trade will be coming soon.

Thursday, December 3, 2009

sold correct call

Hey

So the account has finally corrected its mistake and sold the correct call for the stock. It is a January call that was out of the money when the account placed the trade. It just went into the money this afternoon. Profit information will follow in next post.

-As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account 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 the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

new trade mistake

Hey everyone

So the account made a big mistake in a new trade and sold the wrong call! So it was quickly decided that the call would be bought back limiting the loss.

The deal is that the account sold a call that was less than the price of the stock at the time of purchase. Fortunately the situation was correctly analyzed and a solution was immediately implemented.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account 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 the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.