NiGhTsKy'S TrAdiNg ReFleCtiOnS: 25-Sep Trades

Tuesday, September 25, 2007

25-Sep Trades

Today, the broader market closed the first hour below 22pma, confirming the start of a downtrend. I looked for stocks that have a potential downside move and trend similarly to the broader market. Entered the following 2 trades:

Entered the following 2 trades:

CLF	90	Oct P	41.8%	Contracts
	Stock ($)	Option ($)		2
Entry	83.67	7.6		$1,520
SL:	86.12	5.9	-22.4%	-$340
Target	78.5	11.6	52.6%	$800

AZO	115	Oct P	29.0%	Contracts
	Stock ($)	Option ($)		2
Entry	112.6	4.6		$920
SL:	115.2	2.9	-37.0%	-$340
Target	107	8.3	80.4%	$740

Note: AZO has 37% SL cos I chose the 115 P. If you chose the 120 P, you will get a 20+% SL. But I'm more concerned about the absolute amount, and I'm fine with a 340/740 loss/profit ratio.

1 comment:

Magician said...: Desmond,
You have an interesting blog and it is very kind of you for sharing your thoughts. Most of us who trades probably knows the importance of having a trade plan and stick with it, but it does take discipline to actually follow through. By having this blog, Like you said, it makes you accountable. And I guess that helps you to keeping on track by following through the trade plans.
Good works!; September 25, 2007 at 7:42 PM

Post a Comment

NiGhTsKy'S tRaDiNg JoUrNaL

Oct-07
SR POOL 30 P (IV: 45.8%) x4
16-Oct Tue, Entry 4.2 (26.09) $1680
19-Oct Fri, Exit 5.4 (24.46) $480, 28.6% profit

SR MCO 50 P (IV: 52.6%) x3
16-Oct Tue, Entry 4.4 (47.47) $1320
19-Oct Fri, Exit 4.5 (46.8) $30, 2.3% profit
IV is actually too high, but just to try out and also cos it's 20% SL vs 59% profit target. But once again, I'm unable to make money with high IV trades.

IAE FST 50 Straddle x2
SometimeAgo, Entry 5.1
19-Oct Fri, Exit 7.6 (46.8) $500, 49% profit
Still keeping the Put option worth 0.05c in case got jackpot.

SR PXP 40 Call (IV: 41.3%) x2
10-Oct Wed, Entry 7.3 (46.65) $1460
12-Oct Wed*, Exit 9.3 (49) $400, 27.4% profit
Another Reverted to trading SR and another SR success. SR seems most reliable for me.

Investing LBTYA 45 Jan P (IV: 27.9%) x3
03-Oct Wed, Entry 4.4 (41.5) $1320
Exit 3.6 (49) -$240, -18.2% loss
Another failed investing trade for unknown reasons. But could have kept loss low if I exited immediately after reversal is confirmed.
Successful Investing: 1) SHLD
Failed Investing: 1) LBTYA, 2) NTAP, 3) EL, 4) CTB
Invalid: 1) LEN (should be profit if not for careless mistake)

Sept-07
SR COST Call (IV: 30.2%) x3
27-Sep Thur, Entry 6.6 (61.2)
03-Oct Wed, Exit 6.8 (61.7 $40, 3% profit
Supposed to exit by monday netting me 20+% profit. But I was quite busy and neglected my trading till weds. Bad idea.

BM CLF Oct 90 P (IV: 41.8%) x3
25-Sep Wed, Entry 7.6 (83.7)
26-Sep Thur, Exit 5.4 (86.4) $440, 28.9% loss
One of the BM was up at 11pm. I noticed that its safer to wait till 11pm for confirmation. I shall test out this rule. In any case, it is dangerous to trade BM w/o SR.

Investing NTAP 30 Dec P (IV: 41.2%) x4
20-Sep Wed, Entry 3.9 (27.15) $1560
Exit 2.8 -$440, -28.2% loss
Another failed investing trade for unknown reasons

Investing EL Jan 45 P (IV: 29.3%) x3
20-Sep Thur, Entry 5.1 (40.7)
Exit 3.6 $450, 29.4% loss
Didn't understand why it shot through my stop loss of 25% even though there stock did not gapped up.

Investing SHLD Dec 140 P (IV: 39.5%) x1
07-Sep Fri, Entry 12.5 (136.6)
24-Sep Mon, Exit 15.2 (128.2) $270, 21.6% profit
Impatient and adjusted target. Exited too early. Gapped down the day after exit.

SR/BM MIR Oct 35 C (IV: 40.8%) x2
12-Sep Wed, Entry 5.7 (40.06)
17-Sep Mon, Exit 5.8 (40.78) $20, 1.8% profit
Did not sell when mkt opened, losing profit.

Investing CTB 25 Jan P (IV: 55.2%) x2
11-Sep Tues, Entry 3.8 (23.5)
18-Sep Tues (FOMC), Exit 2.55 (?) -$250, 32.9% loss
IV > 45%; Stock gapped up b4 volatile FOMC.

BM/SR TIF Oct 45 C (IV: 43.0%) x2
12-Sep Wed, Entry 6.1 (50)
14-Sep Fri, Exit 6.3 (52.15) $300, 24.6% profit!

SR CAT Oct 80 P (IV: 32.6%) x2
7-Sep Wed, Entry 6.2 (75)
11-Sep Tue, Exit 6.5 (74.5) $60, 4.8% profit!

SR/BM TSO Sept 45 C x2
30-Aug Thur, BTO 4.5 (48.5)
5-Sep Tues, STC 6.3 (50.1) $360 40% profit!

Aug-07
SR AMZN 75 Sept C
22-Aug Wed, BTO $5.6 ($78.60); SL:$4, ($76.1); T:11.2 ($89.1/100%)
27-Aug Mon STC $6.3 (34.15) 12.5% profit

SR EBAY 30 Sept C
22-Aug Wed, BTO $4.5 ($34.14); SL:$3.5, ($33.16); T:7.5 ($37.12)
24-Aug Fri STC $4.3, 4.5% loss
Closed thurs below dma and stayed below dma on open. Since the uptrend is now a downtrend, I sold the call to limit my loss to $0.2. Well done. =)

BM DIA 128 Sept C
20-Aug-07, Mon BTO - $5.30 (130.1)
23-Aug-07, Thurs - $6.2 (132.5), 17% profit!
I should have selected a stock with a higher profit potential to trade the BM. As it is DIA had only 40% profit to the 22dma. Although it hit the 22dma, it is a fast moving avg, and by the third day, the 22dma is only a 17% gain.

SR TSO 50 Sept P
15-Aug-07, Wed BTO - $5.00, SL: 3.8 (24%), T: 7.5 (50%)
16-Aug-07, Wed STC - 7.5, 50% profit!

Investing LEN 35 Nov P
14-Aug-07, Tues BTO - $5.50, SL: 4.2 (25.6%), T: 11 (100%)
Stock: e: 32.30, SL: 33.89, T: 25 (37.2-19.2=18.2)
17-Aug-07, Wed STC - $4.8, 13% loss
Mistake: For investing, SL should NOT be adjusted b4 it tests the 22dma.

Earlier Mistakes: Entering Trades when the stock as already made a huge move in the direction

NiGhTsKy'S TrAdiNg ReFleCtiOnS

Blog Archive

About Me

Tuesday, September 25, 2007

25-Sep Trades

1 comment:

NiGhTsKy'S tRaDiNg JoUrNaL