Live where you want and Invest were it makes sense.

Life is gettin a little crazy around here we are looking for a new plaace to live and I am trying to keep my head on. Im outof the markets this week with a $200 gain last week.I may have to go back to what i do best making money on real estate but we will see and time will tell

 

 

 

 

 

Trades For Monday

I was really pissed at my self I just sat by and watched the 900pt inteday swing on the DOW. Im going to catch it this time but im not going to catch a falling knife. My entry point to the DIA is anything below 8100 we are trading at 8400 so monday this is what im buying.

DIA Dec 90 put entry 8.75 1 contract.
Short AMAG 100 shares at 34.00 good green to red action.
HOG JAN 15 put $2.60

I an hoing to ride these trades down to DIA 7900 sell and go long the world. The next update will be out late Monday havea good weekend.

Short LVS AAPL Straddle one more time!!!

LVS- Well this is a casino in Las Vegas that saw a high a year ago over $100 and was trading down to $4.00 some news broke about another casino and it shot to $16 any time I see a stock move 200-300% in a few days I know its time to come crashing down. I found a theory on price action called green to red. If a stock has been up a lot and it opens up green then goes to the red zone its time to short. That is what I did I went short 250 shares at $12.25. Had I been a little more patient I would have see the stock rise to 13.00 which was the point I got scared out of the trade. For a $185.00 Loss. Guess what time of the day it was........ AM What a fuck up that was. After it hit 13.00 it broke support and is not tradeing at $5.00. So my stupid AM trading mistake cost me a potential $1812.00 profit.

AAPL- I put this trade on while at the Hotel in Miami. May not have been the best move ever. I was up the first day then AAPL got knocked down so I have to wait. When I did the options caculator before the trade I knew the longer I stayed in it the riskyer it would become. The day of the election AAPL was up big and my contracts we up a small $80 one part of me wanted to take a small gain but the other part of me wanted a big winner. I had 3 choices. 1)Sell for a small gain 2) let it ride and let the upside take care of itself 3) Sell the call and buy a put to replace it and ride the stock down for a big gain. What did I do???? I let it ride for a $250 Loss the next day. Im so fuckin pissed a bout that it makes me mad just thinking about it!!!!! I should have followed what I knew was best which was sell the call buy the put.If I had when i thought about it the Dec 105 put was $8.00 today its $18.20 so you can do the math. Im not going to say I would have rode it all the way but I would have made some money for sure. My next blog post I will be setting trading rules and posting somepictures from Costa Rica

AAPL Straddle, HOG Straddle

With the sucess of my last few straddles I view it as somenthing to stick with in this up and down market.
I played AAPL for a quick $246.00 gain. I saw it so I took a profit especially after the big loss on the VIX.
Mistake on trade: None good trade
I played Harly Davidson into earnings. The totle cost of the trade was $700 I was up because Harley was down big before earnings. The morning of the stock started to rebound. I got scared bacause the Call side of my trade was just about worthless, so if the stock rebounded the Put would lose more vale than the Call gained by going up so I sold for a break even. MISTAKE!!!!!!
when I open the postion I quesdtioned weather I should even buy the call because I was so sure the stock would fall. Historry has tought me not to pick direction so I stuck to my guns. The thing that cost me my gain was an ever so Famious AM fake out. If i would have held the market would hae droped and I wouldhave make a good profit. A break even is not bad its just a wast of time.
Mistake on trade: AM trading. NEVER TRADE STOCK IN THE AM!!!!!!!!

The ViX gives us A Comback

I wish I could say I am a market genus from this trade but truth be told, I cancled the trade and it just never went through so I ended up with 3 contracts.

10/13/2008 Sell To Close 3 VIXXI VIX DEC 35 Put $6.50 $1,935.05
10/10/2008 Buy To Open 3 VIXXI VIX DEC 35 Put $5.00 ($1,514.95)
Total Gain $415.00 which is very good but I can see from the numbers my losers are a lot bigger than my winners. I closed this thing as soon as saw a profit. I later learned that the VIX options are not even priced off the index thay are priced off the futures.

****Mistake on trade: None good trade

When the VIX is high its time to buy!!!!

The VIX is the volatility index which measures fear in the market. When the market goes down the VIX goes up.I heard that when the 2001 crash came to an end the VIX was at 51. This told me anything after 50 would be a good shorting opportunity and I should buy some puts. I bought more that the standard 1 lot. I bought 6 contracts with the Idea that I would still keep a good patron of my account in cash so I the price dropped I could get back in and ride the wave back up. The mistake I made on the trade Is I went to large. I broke all money management rules and I paid the price. When II first got in the trade I was up oer $1500 I go greedy and wanted more. The market crashed and the VIX went to $74 so much for the 2001 highs. I was short at $50 when I went in to buy to to average my cost down the following morning the market kept going down and scared me out of the trade. As it always happens in AM trading the market recovered shortly after the sale, This is how it looked

Bought 6 Nov 35 VIX Puts @ 5 + 14.95 commission =$3014.95

Bought 4 Nov 35 VIX Puts @3.40+14.95 commission=$1374.95

Sold 10 November 35 VIX Puts @ 3.00+14.95 commissions= $2985.00

Total Loss $1403.00 ouch!!!

The lesson here is if you are a rookie like I am trade 1 lots this whole account 10 lot shit is for the big guys. My new goal is to have 10 winners in a row then I will up it to 2 lots.

AAPL is King Janky!!!!

Well i was correct is selling RIMM for a $180 loss. The followng day the market fell -777pts. I was very upset at the fact I gave back most of my small profit, I then realized that the options market is about stratagy and hedging my positions.So i did what I knew was best and played both sides with a straddle this is how it looked.

10/6/2008 10:00 Sell To Close 1.QAAWB AAPL NOV 110 Put 24.45 14.95 0.02 2430.03
10/6/2008 9:55 Sell To Close 1.QAAKB AAPL NOV 110 Call 7.7 14.95 0.01 755.04
9/30/2008 9:59 Buy To Open 1.QAAKB AAPL NOV 110 Call 12.6 7.48 0 -1267.48
9/30/2008 9:59 Buy To Open 1.QAAWB AAPL NOV 110 Put 14.75 7.47 0 -1482.47
Total +$435.12 Reducing total losses to $4071.88
This is just another example of whay ot pays to have protextion.

Trying to Find A bottom??????

Trying to find a bottom can be like trying to catch a falling knife. that is the way my weekend trade worked out. I bought 1 Rimm Jan 08 $80 call for $7.70. I was sure the stock would see a bounce trading at $71 dollars a share but O' how wrong I was. The market fell another -777 points and rimm fell to $61 dollars a share. I know when it was time to go so I sold with a stoke price at $64 and a call price $6.20 so with commissions and all I am down about $180. this just adds to the point iv been making all along if I am going to have a open market position it has to be hedged. I'm done with picking directions. My move for this market is a straddle or a strangle.Also don't trade against the trend if the market is going down go short or buy puts with some small call insurance. I just entered a APPL straddle trade so I will update tonight.

Buy Signs

Green to Red means when the stock is positive (the price is higher than yesterdays close)...and goes Red (meaning the price is now lower than yesterdays close). When the stock move from Green To Red, or positive to negative, selling pressure usually accelerates. The same goes for Red to Green. If the stock is negative and then goes positive, it could signal a buy.

What a day in the market!!!!

Up $285 on the month or 5.7% Reducing my all time losses to -$4327

They say if you don't learn from your mistakes you are destined to repeat them. That is what my trades look like in one of the wildest rides the market has seen in 7 years.I watched the Dow swing 1100 pts in a 24 hour period and the SEC ban short selling until OCT 1st due to the sellers trying to knock the bottom out of the market.
My trades, My trades,My trades. Well this was my plan, when I entered the RIMM position I held half my account in cash so if the stock went against me I could buy in at the lower price. I am so sure the stock is a buy that is a sound plan. Well I jumped the gun when the stock went up 10% then back to my same entry point. So this is what I bought.

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 59764393
Symbol: .RULLS
Description: RIMM DEC 95 Call
Stock: RIMM at 100.15
Action: Bought To Open
Quantity: 1 contract(s)
Price: $16.45
Commission: $14.95
Reg Fees: $0.00
Net Amt: $1,659.95

Which I then sold for a loss $109.00

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 60047804
Symbol: .RULLS
Description: RIMM DEC 95 Call
Stock: RIMM at 98.18
Action: Sold To Close
Quantity: 1 contract(s)
Price: $15.75
Commission: $14.95
Reg Fees: $0.01
Net Amt: $1,560.04

So at this point I was just glad to be out of the trade considering I was down interday around $550 So once I sold this my outlook on the market had changed so i figured I better close all positions and stick to cash.
I sold the original position for a gain of $410

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 60100910
Symbol: .RFYLX
Description: RIMM DEC 85 Call
Stock: RIMM at 104.87
Action: Sold To Close
Quantity: 1 contract(s)
Price: $26.00
Commission: $14.95
Reg Fees: $0.02
Net Amt: $2,585.03

You can tell from the candlestick chart when you buy at $100 $89 does not look so good. The lesson learned is stick to a plan and always protect the down side.

RIMM & V

Today was a big day with the Fed's taking control of Fanni and Freddie. The market is up almost 500 pts from its interday low. I have had my eye on Rimm they have got caught up if fear selling in the market.This is the position I entered

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 59438915
Symbol: .RFYLX
Description: RIMM DEC 85 Call
Stock: RIMM at 100.08
Action: Bought To Open
Quantity: 1 contract(s)
Price: $21.90
Commission: $14.95
Reg Fees: $0.00
Net Amt: $2,204.95

This option has a delta of .71 meaning when the stock moves a dollar I make .71 so I like it.

The mistake I made on this trade was I bought it in the morning and I have been wanting to keep my trades more toward later in the day. The second mistake I made was I did not heade this position with anything from the down downside. So next time I may want to buy a put.

Visa is on my mind but I will cover it in my next post.

Up $350 on The Day or 3.5%

Positions traded for a gain (V) $70 and short (WM) $280. I closed out all open positions today to start this blog. Visa is meeting resistance at $87.50 if it can break the $90 mark $100 is the next stop. Washington Mutual is a shorts dream come true it bounced off $10 for 3 months it finaly broke and the next stop it $8.50 this may be a good gap down play. Paper money fro think or swim is a good demo account to try your hand.