Again, I have become neglectful in updating my blog, so shame on me. I need to be more active and take my time to enter my trades both good and bad. So let's get this thing rolling with my most recent trades and thought process. First and foremost...I closed out ALL my mutual fund positions. This may be an egotistical move to think that I can do it better than "professional" investors, however I want the fluidity to move in/out of stocks. Initially, I did have some sellers remorse because the market had a nice uptick the day after I sold, but overall I am satisfied with my decision.
I know these are a bit historical, but this was my latest trade activity:
* 10/21/08 purchased Dec $15.00 put(s) XJZXO (XLF) @ $1.25
* 10/22/08 sold put(s) @ $1.88
* 10/27/08 purchased shares of U.S. Steel (X) @ $32.27
* 10/30/08 closed out all shares of X @ $38.43
* 10/01/08 purchased shares of Vasco Data (VDSI) @ $9.98
* 10/03/08 purchased additional shares of VDSI @ $9.10
* 10/31/08 closed out all shares of VDSI @ $11.33
My general thought process moving forward is to focus on energy and industrials. I will also look at getting into some options on the larger indexes.
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Showing posts with label trade. Show all posts
Showing posts with label trade. Show all posts
Monday, November 03, 2008
Monday, November 12, 2007
My First Options Trade
Well today I was full of apprehension because over this last weekend after the market took a drubbing, I decided to make my first options trade ever! I have been doing research and read a great book "Understanding Options" by Michael Sincere. It takes a very common sense approach to beginning options and is extremely user friendly. Anyway back to our regular programming. I have been following Vasco Data Security International INC (VDSI) for awhile and have even previously blogged about it being on my watch list.
On 25 October 2007, after doing my due diligence I finally picked up some shares on a pure momentum play and based on earnings at $30.02. The analysts were a bit disappointed with VASCO's earnings and valuations at the time, so the stock took an immediate tumble the very next day. Of course this sucked quite a bit and I was initially put off, but the more research I did the more I realized how this company has true worldwide exposure and are a true leader in their respective marketplace. I decided to hold on for the ride and watched it tumble down to the low 20's. On 8 November, I picked up more shares at $20.05 to shrink my cost basis realizing this was a great buying opportunity and that VASCO was being punished based on the overall marketplace not on the value of the company.
Now to the main point of my post. Today I took my first giant step into the options market by placing a covered call sale via my brokerage at Scottrade.
At first, I was a bit nervous thinking I was going to mess up my first options trade and end up costing myself a ton of cash. My main decision was what was my time frame and strike price for the covered call. I decided that since this was my first trade I did not want to space this trade out for many months, so I needed a strike price that if exercised would still allow me to earn a little profit. Based on my previous price points (mentioned earlier) I entered a sale for the December calls with a 25 strike price. My order was filled and I received a premium of $1.20. As you can see, I could have probably got a higher premium, but the NASDAQ started dropping this afternoon and I did not want to lose out on a trade just over a few bucks.
Lessons Learned: Don't get nervous it's just another trade, so it's not like I'm selling naked puts or calls where the risk is extremely great. All-in-all, I'm pretty happy with the trade and hope that the option does not get exercised because I still believe that VASCO will go higher just not sure if it will accomplish this in this volatile market by December. I guess I will have to wait and see.
On a more important note: A happy Veteran's Day from one veteran to the hundreds of thousands out there worldwide.
On 25 October 2007, after doing my due diligence I finally picked up some shares on a pure momentum play and based on earnings at $30.02. The analysts were a bit disappointed with VASCO's earnings and valuations at the time, so the stock took an immediate tumble the very next day. Of course this sucked quite a bit and I was initially put off, but the more research I did the more I realized how this company has true worldwide exposure and are a true leader in their respective marketplace. I decided to hold on for the ride and watched it tumble down to the low 20's. On 8 November, I picked up more shares at $20.05 to shrink my cost basis realizing this was a great buying opportunity and that VASCO was being punished based on the overall marketplace not on the value of the company.
Now to the main point of my post. Today I took my first giant step into the options market by placing a covered call sale via my brokerage at Scottrade.
At first, I was a bit nervous thinking I was going to mess up my first options trade and end up costing myself a ton of cash. My main decision was what was my time frame and strike price for the covered call. I decided that since this was my first trade I did not want to space this trade out for many months, so I needed a strike price that if exercised would still allow me to earn a little profit. Based on my previous price points (mentioned earlier) I entered a sale for the December calls with a 25 strike price. My order was filled and I received a premium of $1.20. As you can see, I could have probably got a higher premium, but the NASDAQ started dropping this afternoon and I did not want to lose out on a trade just over a few bucks.
Lessons Learned: Don't get nervous it's just another trade, so it's not like I'm selling naked puts or calls where the risk is extremely great. All-in-all, I'm pretty happy with the trade and hope that the option does not get exercised because I still believe that VASCO will go higher just not sure if it will accomplish this in this volatile market by December. I guess I will have to wait and see.
On a more important note: A happy Veteran's Day from one veteran to the hundreds of thousands out there worldwide.
Monday, October 08, 2007
Stock Trades
Well today was a day I could sit and play with my son and do a few trades. I found a really cool website a few weeks ago, which mixes trading with humor, so check it out http://suckmynasdaq.com/. Anyhow I was trading today and picked up some shares of Akamai Technologies INC (AKAM) http://stockcharts.com/h-sc/ui?s=akam&p=D&b=5&g=0&id=0. Got in at $32.81 and cashed out approximately 1 hour later up over 1 point.
In addition, I also picked up some shares of Amtrust Financial Services Inc (AFSI) http://stockcharts.com/h-sc/ui?c=afsi at $17.25 and $17.27 and it went down a bit today, but will continue to watch. A few other notables that I continue to watch are POT, NVDA, and BOOM. Not sure how the market is going to fair in the next couple of days but time will tell. If anyone out there finds this stuff interesting, useful, or just happened to come across it please leave a response or link to other places. Tks, Justin
In addition, I also picked up some shares of Amtrust Financial Services Inc (AFSI) http://stockcharts.com/h-sc/ui?c=afsi at $17.25 and $17.27 and it went down a bit today, but will continue to watch. A few other notables that I continue to watch are POT, NVDA, and BOOM. Not sure how the market is going to fair in the next couple of days but time will tell. If anyone out there finds this stuff interesting, useful, or just happened to come across it please leave a response or link to other places. Tks, Justin
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