Solar Sector

I think solar sector is breaking out. I have few stock of LDK i purchased earlier but had a big drop on it few weeks ago so i am recovering my losses on it. But i m going to keep an eye on it.

I had purchased BXS as i mentioned in my previous post but sold them too early with very less profit. I had good entry point (22.00) with 3% stop loss and 12% profit margin. I sold too early on it. Another big one i had last week was APOL, I had five contracts of it which i sold for loss last week, now up about 8% and options about 60%.

I had purchased some ultrasort SDS and SRS last friday which i got stopped out today for minimum loss.

I will be waiting for pull back in solar.

WatchList

BXS - Bottom Tail at 200 MA with stop below 200 MA.
TYP - Technology Bear. May be at recent bottom in case if market change direction.
GMCR - if goes above 50 MA with close below it. It has heavy volume up days in past.

Watching - OSG

Following chart looks interesting. Oversold stochastics. Support at 50 MA. Depending how market opens tomorrow, i might buy near 50 MA and close below 50 would be stop.

Few Trades I am in

These are my few open position since last couple of days.

Bought ASIA at 18.64
Shorted MSFT at 23.61 (stop 24.48)
WMT 2 call options (July 47.50 at 1.80)
LDK at 11.06
DRYS at 7.26
TLT july 90 call at 2.40

Looking to buy some FAZ around 4.70 if it comes there today.

Watching

I am monitoring ASIA. Its been under good accumulation for last few weeks and pulling back. I would buy around 18.75 or so.

Trade

I bought QID at 32.50 (with stop 31.10) and 2 AAPL option (130 put for June) at 1.37 (with stop of 0.70).

WatchList

ESI Short around 50MA. Target around 90.
POT short around 50 MA. Target around 60.
GME Short around 50 MA. Target around 22.
AZO short around now and take loss if it goes beyond recent high. Target is 140 - 145







I have created another strategy which looks for stock > 40 in price, optionable and min 50 day average volume is 500,000. There are two watchlist here which is to go long or short.

Last couple of day market is going up with 5+ percentage gain and it has thrown some of ultrashort to downside very much. I am going to keep an eye on SKF, SRS , SMN and EEV in case market reverses.

Not Much Trading

I am not doing much trading these days because of work load and not able to spend enough time in research. I am just wondering whether any research would help in this market. I am not sure which direction market wants to go and it could go either way. More possibility is towards downside. But i am afraid to do any short becuase of market being so oversold. That doesn't mean it can't go further down but it doesn't give good RR.

My recent trades has not worked well for me and i don't want to do over trading so concentrating on work more. But hoping to do some research in weekend and come back. I have small SSO position open with stop at 19.50 (bought at 20.00) which could kick me out anytime.

I had FAZ with me and i sold them with very little profit last week. If i had kept it, it would have been very good profit. No point crying now.

AU Trade

I have bought 100 shares of AU at 26.50 as planned in yesterday watchlist with stops in it.

Also Bought 100 USO at 27.50 with stop on it.

Watching

Higher Highs and Higher lows. Oversold Stochastics can provide good risk to reward. Watching entry tomorrow around 26 with stop if close below 50 MA. Target around recent high around 30. Recent uptrend is on higher volume. Only concern is little higher volume on today's pullback.

First Time Selling Option

I have bought 100 USO at 28.00 today and sell FEB 29 call option against it at 1.20 today and collected $120 commission on it. This is my first covered call. My first executing put option (i had bought FAZ put JAN 09 expiration) was disaster and sent my account in -ve terittory. So this time i am trying selling covered call option and see how i do it.

I also bought 100 CBI at 11.00 today with 10.50 stop and about 14.00 target.

Trade

Finally i am out of my all FAS position with loss. Good Loos. As always happens to me, i didn't sell earlier with small loss and i kept it for it to be big. And finally i gathered courage to put stop on it and it did knock me out today at 7.90, it went up to 9.20 something. I could have reduced my loss but my luck :(

I don't know if financial are strong enough to run big from here. Today suddenly market changed because of rumor of mark to market send market higher. Tomorrow is Job report and let's what it brings tomorrow.

For me, i am not sure which direction market wants to go. Sometime i feel not to trade at all until direction becomes clear. My recent losses has put me at almost 5% loss for the year. It wiped out my all profit i gained since December 08. Too bad. I am trying not to discourage and hoping this will be valuable lesson to me.

Trade

• Today morning i have bought 100 shares of USO at 28.25 with stop order of 27.75.
• I have bought ESI FEB 120 PUTS at 2.50. This stock has moved from 70 to 133 in last two months. In expectation of small pull back i have bought this position. I will sell it if stock closes above 135.
  

Sorry

I haven't been able to put new trades, my watchlist or weekly review for last couple of weeks. I have been very busy at work and not able to spend enough time to looking at this things. I know its just an excuse but still that is reality. Once i go home, i am too tired to do anything.


I have not done any new trades in last 10 days. I have missed lots of good oppertunities and also have sold lots of good puts too early. I have to live with it :)

I will try to get better again with this stuff.

I have bought another MON 75 FEB Call at 4.00 Today. So i have two calls of FEB 70 at avg price 5.50.

I am turning little short term bullish so let's see if i am right or not. I am also thinking about going long in USO with stop below 27.50. I will see how it opens tomorrow and will take action on it.

Jumping Account

My personal trading account is has seen unbelievable moves in last few days.

This are overall account YTD.

Four days ago. 1.3% UP,
Three Days ago 8.7% UP,
One Day ago -12% DOWN ( because FAZ fiasco and not follwoing rules)
Today i could have 15% (Could have if i had kept my FAZ short)

I am writing this again and again just to remind myself that with proper stops, position size and trusting your chart and taking action could give you nice profit.

Review

I haven't done any trades in last few days. I still own USO, MON, DXO and FAS long.

Last week i had put option of FAZ (3x bear financials). It was in money at expiration and i thought i would get my profit. But actually when you let your put expire in money, means you shorted that many stocks.

So i got it as shorted on Tuesday (yesterday) at 65.00 and it opened at 75 and went up to 88. So i was in big loss and i cut my losses at 80. And as it happens always, today FAZ came down to $57. So i took loos of $1500. Once day wait and i could have profit of $700. AWWWWWWWWWWWW.

And i decided if it goes below 20 MA on 30 day chart, i will short it again and i didn't becuase i was scared becuase of my previous unsuccessful trades. So frustrating.

I have 500 FAS in my retirement account which i bought at 13.50, i might sell calls on it to collect some premium on it to cover some of my losses.

Some of the lessons i learned .... There is many but just to start with

• Trust Your Chart and Analysis.
• Keep Position Size and Stop Loss
• Don't let your option expire unless you are deep in money.

I didn't put this post couple days ago when i had this trade because i was embarrassed with myself and not following my own rules. I tell everybody to follow some rules and i didn't do it. Shame.....Hopefully this will my valuable lesson for me.

Trade

• I bought some FAS at 13.98 in expectation of rebound on Friday.
  
• I forgot to post it about FAS trade. I didn't work my way. I am still keeping them. I should have put some stop loss on it and get out of them and buy them again at around 11.50. Lesson learned about stops. I think next week we might get some rebound because of oversold conditions as well as inauguration of new president. Hopefully.
• I also shorted FAZ and quickly covered them for about $60 profit. Via put options.
  

Weekly Result Review

Here is my this week result. I am little disappointed.



Overall i am better than spy but it didn't meet my goal for the week (2% gain). I did meet that goal in my personal account. I had three very good shorts in my Roth IRA account. If i had kept them, i would have at least 15% overall gain in my account. This is to something keep in mind. I generated loss because of buying some FAS on Friday morning and not keeping stops.

I think financial are very oversold and might get small bounce on Tuesday because new President Obama is taking office. I will use that opportunity to put stops on them. If they rebound strong, i will keep them. I won't make same mistake as i did with stops (which i stopped out with profit but could have been much more :().

Currently i am long financial and oil in all my accounts. DXO, USO, FAS and MON

Trade

• Today morning i bought Jan 70 PUT option for SRS at 1.70. It is expiring tomorrow and i just put it looking at srs price going up but not the momenum on my indicator. I was continuously monitoring prices and SRS wasn't going down so i was getting nervous and stopped looking at it. I check its price around 3.30 PM today at it was at 6.40 so i just sold it immediately. Actually it went upto 9.00 but i am happy that i made 270% profit in few hours. I will put my chart analysis later for my reference.
  

Review

• I had bought goog 310 Jan Put option for 4.00 on Jan6th and sold for 6.00 on Jan 7th. Today it is 22.00. Frustrated.
  

Trade

• Market is getting oversold in short term and could get little rally under oversold conditions as well as new President coming in next week. Let's see. Otherwise i might close these positions. I am not feeling comfortable going long at this point as its already very oversold. So being cautious here. Let's see what tomorrow brings.
  
• I still have my MON FEB 75 Call. Need to see some actions on it. It is still holding 50 MA on it. It is close below it. I might close it.
  
• I also bought 2 options of USO at 3.00 and 3.10. This is Feb 30 Call.
  
• I Bought FAS again at 15.17. It is very small position. Only 50 stocks.
  
• I bought some DXO (200 stocks) at 2.80. I think energy is oversold and want to take small position.
  
• Finacial do not look great so i will revisit FAS little later. I am keeping my MON feb call options right now.
  
• I sold my FAS long position at 15.96 which i bought few days ago at 17.00. It generated loss of 6.11%. It was showing 8% down in premarket so i put stop loss on it and it got triggered after some time. I could have sold them at open at 18.00 which would have generated some profit.
  

Trade

• Bought MON call option(75 Strike price- FEB09) at 7.00 today morning.
  

Trade

• I bought 100 shares of FAS at 17.00 today as oversold play.
• Sold my Drys puts at 1.40 Today which i bought earlier in the day at 0.60. Its a profilt of 133% in intraday. Its 133% intraday. This is expiring in 3 days and i didn't wanted to loose any profit so i just cashed it out. I am sure it will be more profitable tomorrow but i will take it.

Review

I was looking at by traders of SRS and FAZ, i sold them for profit but too early. Today morning i sold SRS at 61.75, which i bought at 55.00 on Friday. Currently it is running at 66.27 (@10% more than i sold for). I had my stopped too close and it kicked me out. I am frustrated.

Same thing is for FAZ, which i bought &35 and sold at@38, last week. It is running at 48 after two days. Its just too tight stop in fear of losing profit. I am happy that i made profit on it but little patient can give me more rewards. I think i need to pay more attention to my trading rules and wait for stops to hit property rather keeping them too tight.

I will keep refing my rule more. I will write note about my trading rules and setup in few days.

Trade

• Bought Drys Puts (Strike 15- Jan 09) at $0.60
• Sold SRS at 61.75 which i bought on Last Friday. I got stopped out. Profit of 12.75% in one day.
  

Weekly Result Review

I have decided to track weekly results of all my accounts and post it here and compare it with S&P. This is to track my progress and compare against overall market. This is first week and will try to keep it on.



This week is green in all the accounts. My goal is to have minimum 2% gain weekly basis. I have achieved that in IRA but not in other two accounts. I would have gained them if i had kept my trades open till today but i did not. At least i am happy that i close all the three in positive territory.

Trade

• Bought SRS at 55.00. Took small position.Might add little more if goes down. But not too far.
  

Watching

Looking to start position in THOR around 50MA (around 26.50) and close if goes below 50MA. Stochastics also getting oversold.

Trade

• Stopped out of FAZ at 38.50. (Bought at 35.14 two days ago). Profit of 9.5% in two days.
• Sold RTH puts at 2.00.(Bought at 1.45 on 01/02/09). Profit of 37% in 4 days. I could have sold at open today at 2.50 but thought might go further down. So i got stopped out at 2.00. Still a profit.
• Also sold by GOOG puts at 5.41 which i bought on 01/06/09. Profit of 35% in two days. Could have sold at 6.80 at open but though might go further up.
  

Trade

• Sold UYG at 5.80. I had bought them few weeks( i guess 3 weeks) ago at 5.00. Profit of 16%
• Bought Google Options (Jan09-310P) at 4.00. I actually bought them yesterday but forgot to post it.
  

Trade

• Sold ABK at 1.50 today. I bought at 1.42 couple of weeks ago. I should have sold this earlier for loss but i had very small position so i kept it. I should have bought on further dip but did. Just 5.6% profit. But profit is profit.
• Bought FAZ at 35.14 as it is very oversold. Stop is blow 34.00.
• Sold RIMM(Jan09-40P) at 4.51. Bought at 2.40 on Friday. 87% profit in one day.

Trade

• Bought RTH (Jan09-75P) at 1.45
• sold AKS 100 shares at $10.14 (20.42% profit - Bought on 12/29/2008 - 5 Days)
• Bought AKS (Jan2009-7.50P) at $0.10 to hedge my AKS long position.
• AKS 100 stocks were bought on 12/29/2009 at 8.42. Currently at $10.28
• Today bought RIMM (JAN09-40C) at 2.40