Commentary
Well that was a breath of fresh air! I mean the markets giving back about
25% of the losses they seized this year. If history is any guide (and it
usually is) the markets will climb back more slowly than when they dropped
in the first place. If we're really lucky, maybe, we'll break even by the
end of the month. That's assuming that what we're seeing is really not the
start of a bear market which could then take anywhere from six months to two
years before normalcy returns. Of course, in the meantime, we'd still have
to survive the markets falling yet more deeply. Hey, didn't I tell you kids
to strap in because it was going to be a bumpy ride?
I came this close to jumping into the market today but then caution overtook
me. I'd like to see a confirmation day tomorrow (with the markets again up
significantly) before I commit any more resources. So today again we found
our self just riding out the storm. It's boring but so is good health too,
when you think about it. <g>
Paper Profits Table
Closed Transactions Table
Put Trading Activity for Today
Generally, we want STO Premiums to be as big as possible and we was BTC
Premiums to be as small as possible. This would give us optimum profits. In
other words, we want to buy low and sell high, but with put writing its
always in reverse order. Note that all Premium, STO, and Profit/Loss Columns
should be multiplied by 100 to get the per contract
numbers and that all positions we enter into will always be for as least two
but probably more contracts per position.
Abbreviations: STO-Sell to Open; BTC-Buy to Close; AROM-Annualized Return on
Margin; S/L Tgt-Stop-Loss Target
Sell to Open (STO)
Symbol Expires Strike Premium BTC Tgt S/L
Tgt Sell By Date
None
Account Balance less Margin available to invest: 50.9%
Account Balance less Margin and Voluntary Reserve requirements available to
invest: 20.9%
Buy to Close (BTC)
Symbol Expires Strike STO BTC
Profit/Loss Days Held AROM
None
Comments or Questions?
If you have any comments or questions, please direct them to Leonard
leonard@irsdehassler.com
Disclaimer:
This is the fine print and is designed to protect me in these litigious
times, and until I get better wording for this disclaimer, you are under
notice that I am not selling my services nor any other product, nor am I
trying to induce you to trade along or independently, with me. I am merely
offering a journal, so to speak, of my portfolio's transactions and results
with the hope that you will glean information and educate yourselves in the
stock market in general and option trading dynamics in particular. Trading
in the stock market and in options involves substantial risk and much money
may be lost. Beginners, especially those with little or no understanding of
the stock market, lose most, if not all of their capital in a relatively
short time. In other words learn from me and my mistakes and if you want to
risk your money in the markets, that's your business and has nothing to do
with me. I am not your representative, broker, advisor or any other type
agent acting in your interests. As a matter of fact, if you want to invest
your money, I recommend you hire your own advisor other than me. I also
reserve the right to cease publishing this missive, or change its publishing
frequency at any time without further notice or liability to you.
Copyright (c) 2007 Leonard Mednick, MBA, CPA (Ret); Managing Member LIME
Holdings LLC
_________________________________________________________________
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