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Friday, January 29, 2010

New Capital...7 weeks left

Hey

New Capital has been added to the account.

There are seven weeks left on the current trade. The stock has not moved this week. There has been no news this week.

Wednesday, January 27, 2010

call selling research results 1/27

Hey

In doing research for the next trade, the account showed the following results for the Feb options:

1) Eastman Kodak currently has a price of about $4.60 today. The Feb $5.00 option is currently bidding for $0.20.

2)JA Solar currently has a price of about $4.76 today. The Feb option is currently bidding for $0.35

3) TGB is currently trading at about $4.75 today. The Feb $5.00 is currently bidding at $0.15

The Account does not have a position in any of these stocks and has not traded these stocks in the past.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given for the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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, January 26, 2010

8 weeks to go on current trade

There are eight weeks to go on the current trade. The stock has fallen to the price that the account bought the stock. The price of the call has dropped by over 50% since the account sold it. The stock will have to rise 15% to reach the March strike price.

Using our technical analysis tools from Yahoo Finance and Optionsxpress, the stock is showing to be in a trading range that is above the account's base price and stop loss sell price for the stock.

The stockholders of the company did vote to allow the company to expand its total number of common shares by 65%. This was done to help give the company the opportunity to product partner with larger companies in its industry. The company is currently testing products that will have results published in the next six months (according to the company.)

- Opinions are given on this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses occurred from trades that use its material as a basis for the trade.

- The account does not fully divulge all information on companies that have open trades. This is to protect current 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, etc.) 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.

Thursday, January 21, 2010

Feb 10 trade opportunity

Hey everyone

In doing research for the next trade, the account has found a stock Immunomedics (IMMU,) that currently has a very high time value placed on its calls. The Feb 5.00 call is being bid at $0.35.

Since the stock is only at $4.50 range, this provides a decent opportunity for call sellers to pick up some call revenue with the opportunity of picking up trading profits should the stock push past $5.00.

The positive move on the stock seems to be made because of good news (go to yahoo.com) related a blood test for cancer that they have been running.

The call selling account does not have an active trade on this company.

- Opinions are given on this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses occurred from trades that use its material as a basis for the trade.

- The account does not fully divulge all information on companies that have open trades. This is to protect current 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, etc.) 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, January 19, 2010

new capital

New capital has been invested into the the trading account. Projections show that the account will be able to make higher revenue generating trades as capital increases.

Fourth trade finished

The account just finished with the fourth trade with positive results. The stock ended up closing on Friday below the strike price. Therefor, the option that was sold expired worthless. The option revenue was 6.7% of the stock purchase price.

The stock was also up 6.7% from where it was originally purchased. It is strange that both numbers ended up being the same amount percentage wise.

The fact that the stock is closer to the strike price has helped the time value increase in the next trade.

Fifth Trade Made Today

Today, the account sold a March call for the same stock as the previous trade. This was done because selling this call gave the account its highest value for the revenue.

This is the fifth trade for the account. It is also the second time the account traded more than one time with the same stock.

- Non Professional opinions are given on this blog. Before investing any money into any asset, please consult a financial professional. This blog takes no responsibility for any losses occurred from trades that use its material as a basis for the trade.

- The account does not fully divulge all information on companies that have open trades. This is to protect current 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, etc.) 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.

Thursday, January 14, 2010

China Direct Industry Inc

Hey

In doing research, the account found that China Direct Industry Inc. (symbol CDII)has a high time value for the March 2.50 call. The Account will probably not be making this trade due to its current commitment to another trade. But it is a stock in a position that can be used to create some income for call sellers. Let us know if you agree or disagree.

- The account gives opinions on this website. Before investing any money into any asset, please consult a financial professional. This blog takes no responsibility for any losses occured from trades that use its material as a basis for the trade.

- The account does not fully divulge all information on companies that have open trades. This is to protect current 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, etc.) 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.

Friday, January 8, 2010

stock closes within 2 percent

The stock has closed today up to within 2 percent of the strike price. This next week should be interesting.

one week to expiration

Hey

The current trade will expire at the end of next week. The stock is currently above the purchase price but below the stock price.

If the stock closes below the strike price, the account will probably look to selling out of the money calls for February or March for this stock. This action will drive down the cost basis for the stock. The only way that the account would sell the stock and look for a completely new trade is if it found a stock with a call that had a higher time value attached to it than the cumulative time value of the current trade.

If the stock closes above the strike price at the end of next week, the shares will be called away. The account has already started to look at stocks available to trade for the months of February and March.

Right now, the stock would need to move up five percent next week in order for it to reach the strike price. It did make a five percent move this week without any news so it is possible.

- The account does not fully divulge all information on companies that have open trades. This is to protect current 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, etc.) 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, January 5, 2010

Option price

Hey

The account has noticed the price for the option has hit the bottom ($0.05) today. The stock price will need a six percent rise to reach the option strike price. There are only eight trading days left before expiration.

- The account does not fully divulge all information on companies that have open trades. This is to protect current 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, etc.) 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.

Sunday, January 3, 2010

2 weeks on Current trade

Hey

There are two weeks remaining on the current trade. The stock is between where the account purchased the shares and the strike price. The option has fallen in value and might go worthless. The stock will need a ten percent rise to get to the strike price. The following month's call at the same price is trading at a high value indicating a bullish action.

- 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.

Happy New Year

Hey everyone

First, happy new year! Let's see if we can create some wealth this year. The account will continue to focus on selling calls as a means of profit. There are some positive signals that the account should have a better 2010 than 2009. It is better funded at this point of the year compared to last year. Also, the account has also traded a few times and recognizes the need to adapt and follow rules better. These two items alone should produce positive results for the account.

The account will continue to use Optionsxpress and Yahoo Finance as major sources of information. It will also use sites like Bloomberg, Seeking Alpha, CNBC, and any other sites that provede relative information on the companies/stocks being traded.

Again, happy new year!