trading options

Apple Inc back at $228 and climbing – Obama Healthcare Bill signed into law – YES! Now I predict stocks can continue their uptrends without the “unknown”.

Ok Apple (AAPL @ $228) it’s about time. I’ve been in April 10′ 220 call options and have been watching this stock play around the 220’s driving me nuts because if I could commit to trading it full-time I could of been in and out many times for small profits. I suppose my option is probably still negative right now until it movies over $230’s in which it will likely run fast into the new iPad launch the first week of April 2010 in which I’ll sell my options at around a 25% profit (2 weeks, a bad trade). I’m psyched about the iPad. Many Apple geeks say “screw it” just because you can do everything on an iTouch or iPhone and put it in your pocket. For me though I’ve held out. I might even have to wait until the iPad 2.0 with a video camera built in so you can walk about doing skype/video conferencing anywhere. I like the touch screen and will likely just use it to show off my portfolio and use the Hitchcock application to practice creating a film.

I don’t even have my 2009 iMac anymore. I offered it towards collatoral + all my HD video gear to be a co-owner in www.icanhandlethat.com (not live till June 2010) in which I’ll be doing media full-time and be an owner. I’m really stoked for the development of the company and it’s purpose because it is what I love doing right now which is helping small businesses in media and promotion. So even if I had an iPad I’d have to use my Art Institute school computers just to download the apps on it. I would definitely bypass the iTouch to get a larger more versatile iPad.

President Obama signing 2010 healthcare bill into law

As for President Obama’s healthcare bill finally signed into law I’m kind of glad the fighting is over and now we can focus on the economy (even though the $1 trillion cost will have a real affect if we don’t tax citizens (the rich) more to pay for it).
The new healthcare focuses on “preventive health” and that DOES MAKE SENSE. I’m just hoping as a person that doesn’t have healthcare that I’ll be able to get it affordably and be able to get the “preventive” things that keep us truly healthy and vibrant such as chiropractic care, acupuncture, yoga, green foods, and massage. If it won’t cover any of these “true preventitive” healthy living precautions then, well, that will just suck. If I’m going to have to pay high taxes as a broke student that is unemployed currently then at least give me some massage and acupuncture to take away some stress!
I’m glad Obama is the first black President (or should I say half black half white, does it even matter?) and made it his legacy to get healthcare for once and all changed. I thought the great former President Bill Clinton would get to do it. He’s my favorite. A man of the ladies while also being a great peacemaker. President Obama took a big risk in his presidency and I like risky people. He didn’t give up and now it’s a law passed, a super huge one. I suppose everyone better start investing in healthcare NOW because a lot of money will be funneled into healthcare from the government and then people working for the business. Just think about all the businesses that will get paid “no matter what”. This will create a lot of niche sectors currently profiting become likely gold mines in the stock market.

-pm


-41% on recent plays – Apple changing status to a downtrend stock? First Solar flipping to the upside now?

Wow. What a confusing market. As soon as I think the markets are stabilizing they do some crazy stuff and caught off guard. Tuesday the Fed lowered the interest rates which was assumed would happen by the market. If it didn’t happen then would the market be tanking right now? I think lower interest rates are good. Personally, if the rates went below 5% I would definitely refinance. On the main page of the Honolulu Advertiser newspaper it said “rush to refinance” I see this as a mega plan for failing mortgage companies to become cash king giants again. Remember every refinanced mortgage they do they earn fat commissions. If within the year more people are buying because of lowered interest rates which means the more you can buy with less money then I’ll definitely be flipping my Hawaii condo for a real fat profit. I’m about to put another $1800 into finishing all the drywall. I figure get it done now when I do have the money so if I can’t sell it within a few years (some major markets chaos) then at least I can rent it well because it looks new.

My bad plays were Apple (AAPL) and First Solar (FSLR). Apple predicts a halt in sales I think this is going to make this stock drop drop drop until Steve Jobs their savior says something different or they come out with something more innovative and new. As for First Solar there was tons of bad news on the company and charts showed it still falling. Then it goes up 20 pts. This week commodities have done quite well. If I would have sold out of my options Tuesday the majority of all my options going into the fed decision rallied and I would have been in the plus likely for all of them. It just shows what one day and one news story can do when trading within days using call and put options.

I’m definitely changing status on AAPL options. Likely will be practicing shorting it with put options here on. Also after a big day yesterday the second day usually lets some gains go. So practice selling today probably wasn’t the best day. 2 days in the trade would have been the best.

see results: (click to enlarge)
12-17-08fnn


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


FXI Puts – $990 even though technical indicators showed otherwise, + SHLD Nov 130 Calls

This morning I knew the market was going to pop from Fridays sell off. AAPL was up going into earnings currently at $174. My prediction is that it will sell off after hours if it repeats itself from many other earnings and then will continue to move up. FXI has been popping out of the bollinger bands and has fallen the past 3 days. I guess Friday was the better day to play puts and I would of been out profitably. Although it will close under the down trend I sold out of my position because FXI was changing direction I lost -$990. I’ve been wrong before about FXI. Right when I think there will be a major Asian market correction from peaking so high it falls a little then just spikes up higher so I’m not going to play my odds just incase it does pop open tomorrow and follow its big uptrend. I’d rather lose $1000 then $5000. As for SHLD it has been getting good exposure and all of retail stocks today broken about a 15 day down trend with a big white candle. If retail holds ground I can see SHLD easily hitting $140. I’m currently up $350 in my Nov 130 Calls. I now have to regain back the -$990 I lost at the same time. I’m slowly gaining the discipline to sell out even if tomorrow FXI drops and I was correct about the new direction of the trend. Today looked like a very good entry point on both. My first mistake was doing two trades at the same time. I kept telling myself missed money is better then risked money, but of course I still traded.

I was going to do a Put trade on AAPL earnings because even when they are great the stock falls. But instead of possibly losing more money I thought it would be a wiser decision to buy AAPL options after earnings. If AAPL does fall 3-5% lower then buy it at that entry point if earnings are good.

I’m really trying to do as many practice trades as possible, 10-20 for every real trade. I just need to only trade the stocks I practice and it should keep me in check. I really want to pay off some items to clean up some good and bad debt. One being my car which is a $20k trade, my mobile home park loan $80k, and my student loan $40k that helped me buy the real estate.

Did I also mention I need $13k to buy these two new trailers to rent in my park and possible 3/1 home for $13k? This stuff adds up!