put and call option practice plays

My 7 day put option trades up 35% – AAPL, GOOG, PCLN, QQQ

Apple reported earnings today so I would have been closed out before any earnings reports. If I would have sold yesterday % profits would have been higher or the low of today. By far I entered the QQQ’s a bit later into the downtrend (2 days later) after a slight higher move on the market waiting for the next fall. It proved to be the best and also the most affordable play. An average person could of bought 10 contracts for $1,420 dollars in a super small account and earned a 25% return within a few days. $500 a week is more than I earn now. LOL. I don’t know if I’ll ever trade again. My subconscious dreams are even telling me I have no basic control over my life. You never have control over the stock market. You only hold the trigger to buy or sell and hopefully Lady Luck is on your side. I earned around 35% total on these 4 plays. It could of been much higher if I had waited (waited!) for the pop on Apple I intuitively knew would happen after it’s first hard fall. I would of been over 100% for the 7 days. See below.

Here are the close on my 4 put option trades:
AAPL 555 MAY PUT Bought @ $20.44 / Close Sold @ $22.29
GOOG 610 MAY PUT Bought @ $19.40 / Close Sold @ $19.10
PCLN 655 MAY PUT Bought @ $20.50 / Close Sold @ $20.70
QQQ 66 MAY PUT Bought @ $1.42 / Close Sold @ $1.93

Now that Apple had positive results and the entire market has followed its lead I would switch directions and start playing options for the next few days. However, I wouldn’t be so confident to see it continually going up even though it had a 10% pull back. Any bad news could send Apple’s stock quickly down.


AAPL, GOOG, PCLN – bounce back up – plan to continue to fall

In my previous post after the continue trending change in AAPL, GOOG, and PCLN I see them moving down further. News articles have already come up to scare off Apple investors. A bounce back from its previous sharp fall is normal. We’ll truly know a peak has been hit if AAPL big +30pt move dies by the end of the week. However, practicing these 3 helped me pick out the weakest of the litter – Google. Google has been moving like a slug in the crowd and falling harder when taking hits. For this reason out of my 3 practice trades I would trade my life on I would choose Google put options. I intuitively feel it has the most loose too because it has tried so hard to become everything and take over large markets. It is still a search engine and advertising engine, but it’s beginning to spread itself thinner and get into more trouble. Also it doesn’t really MAKE anything. Everything is digital even though it did buy Motorola it sounds just like to make them stronger instead of actually innovating a product line with a whole lot of money.

See chart below – As you can see GOOG moved the least with it’s friends.
which stock is the best to buy in 2012?

My current practice options must be down at least -80% but that’s okay because I’m smart to be practicing my theories instead of using real money like I use to. My expected bounce back on Apple that I knew was going to happen but could’t confirm did happen today. For the most part if a stock takes such a big dive, it’s still worth tons in free cash, and it’s a top tier company it DOES bounce back however from YEARS of watching the market if it is at a super high run up peak if it isn’t able to recapture it’s highs investors and big traders start considering to make million$ trading the other way down because ladies and gentleman you can earn just as much as not more shorting or put options on a stock – some awesome instrumental tools as a knowledgeable trader.


my big 2009 stock picks – new option practice trades going into new year

hello. how has your stock trading been going these days? currently I’m reading the Dick Davis Dividend. a big fat book with a lot of “i don’t knows” in it. i’m about only 30 pages in to it. definitely a slow read and waiting for the good stuff. i’ve never known a writer so interested in summer camp. i couldn’t stand the ones i was a counselor at so i suppose its how much you dig it.

for my 2009 big stock picks (For myself):

i have a strong conviction that X Steel (X) currently at $38 is going back up up up. it just recently broke its downtrend and slow like a crater tippy toeing back up. i could be wrong and like mr. davis “i don’t know” because there are so many “ifs” in the market that change circumstances, but for now if i bet my life on it i’d buy X call options and the stock (covered calls). even in a slow economy we are still building and so is many growing countries such as china and india. other stocks i see ripe are Apple (AAPL) at $98. it recently hit $110. i see everyone with an iPod and many people i know and people i meet talk about how they want to buy an apple computer. when you go into their mall show room retail stores its stuffed with helpful workers and masses of interested potential and current apple fans. i think another star is AMAT Technologies (AMAT). currently at $10 it is one of those innovative companies and with obama’s energy bill it should strike some wicked fat solar contracts. southwestern energy company (SWN) is always knocking its head with the trend. if you look at the charts its broke its trend and has been moving sideways. its currently on its low so i expect it to move past $30 again currently at $28+ a share. lastly the credit card companies Mastercard (MA) and Visa (V) are both on a tidal wave and likely profiting from this credit mess and consumers going back to credit card use not home equity for all those christmas presents this year for the kiddies. V at $52 still new to the stock market exchange is likely to move quicker past $60 i think.

for my stock trades i’m currently still up +690% since august 2008. if i would have sold out of my last option trades sooner i would have been up more but because i neglected them i lost over 130% on those trades, but that’s okay i’m back in practicing again and that is what counts. i just need to keep practicing even when I see a stock like HOKU at $2.89 and I want to be in it. the more practicing i do the closer and sooner i will get to my goal of understand my stocks better to trade them with less risk and what pisses me off the most is telling me trading in the stock market is gambling. it isn’t if you take real calculated risks which i am practicing on this year.

see recent practice trades going into new year 2009:
12-12-08-fn1


after -777pt DJIA drop predictable “sold off” rebound begins

I didn’t even realize how low stocks sold off until I saw today before the open. I would have traded short-term like 1 day in/out call options on them especially the good stocks. But if you watched GOOG today it dropped again to all new lows. Scary. Very scary, but awesome at the same time if you were playing intraday put options on it. I’ve noticed in my optionsxpress account now whenever I am looking at financial stocks basically all of them say “no short selling allowed”. They are really starting to protect companies too much. If a trader is short selling a company then he is betting on the company falling for good reasons. In the real free markets there should be short selling. If the trader is wrong he’ll lose all his money so the trader must no something.

Although I expect the market to continue falling I can bet the market with such a large drop and even a large come back +5% across the board on indexes will move up one more day before they continue you to fall. Now that I think about it they may just rally into Thursday when the Senate votes on the bail. A great economic blog called Giving Up Control makes some real points about the bailout, congress, and wolves disguised in clothes.

Here are my call option plays for tomorrow:

practice call option trades

practice call option trades


call options plays worked +45%, RIMM drops hard after earnings release, stocks bottoming

the market seemed to get more optimistic today. warren buffet’s edgy deal profiting from Goldman Sachs (GS) couldn’t hurt. without even looking at my charts i know that congestion would be shown with stocks starting to break out. after the market today Research in Motion (RIMM) dove down on earnings. it just shows how unpredictable stocks are releasing earnings. stocks across the board are down a lot and i’m curious if investors fear more after RIMM’s -20% drop. i do know also the Republican party threw out the bailout plan Democratics were happy with. i’m sure this creates some room for panic and turbulance in the markets as well. i will likely be practicing put options tomorrow unless the bailout plan is passed through law and okayed by everyone. should Fed bernaneke really be taken serious? if he just gave “why” an answer with “facts” rather then just vague statements i think everyone would take the Fed more seriously.

see below call option plays closed today:

call option plays

call option plays


closed out of put option practice plays +97% and got into a few call plays. even though i’m not for bailing out bad business, it’s sure to make the market jump once it’s completed

i don’t think any tax payer wants this $700 billion bailout plan passed. the media and congress is doing a superb job at trying to make the American public fear hell is near if they don’t do it. like i said before a failing company that does not know how to manage billions of dollars should not be bailed out and given second chances, nor should any CEO walk away with a fist full of money. my put option practice plays are still working as you can see. this brings me to the point that there is still real uncertainty on wall street, investors are worried this bailout won’t get fixed fast, and that the downtrend has not stopped. some positive’s i have picked up on is that stocks are holding ground. i think Visa corporation (V @ $65) might benefit from the bailout plan as well if it includes credit card debt which it will if congress gets their ways. i noticed it actually moved up some from financial stocks. regardless, people will keep spending on their credit cards and Visa will take its small transaction cut. actually if you think deep about this credit card companies should be having a great year if more entrepreneurs and consumers are charging on their credit cards instead of taking out loans (if getting loans are tight, which i think is just hype in the markets trying to get Americans to fear more). Hansen Company (HANS) also stood out up almost 8% and is showing that it is a great company. on my boat all the workers drink up that shit like it’s candy (monster drinks), i suppose it is candy with all that sugar. see my closed put option plays below and my new call plays i think will jump high the fastest IF the bailout plan is completed this week (of course that is if Americans don’t get any smarter and don’t stand up against this bill that will make THEM PAY for something they didn’t fuck up on).

closed put plays +97% profit:

put option practice plays

put option practice plays

new call plays i think will work (especially if bailout plan is finished quickly for wall street):

trading a few calls on notable companies

trading a few calls on notable companies

you know one thing i am worried about is the ban against short selling and against put options on financial stocks. this is crazy. plus this just takes away one of my most powerful ways to earn money in the markets while it is doing bad and i’m playing it understanding that it is falling.