Thursday, April 24, 2008

Market Updates

The market did not behave as it suppose for the past one week or so. With bad news, the stocks went up. With good news the stocks went down. For example, BBBY provide lower guidance and yet the stock had been relatively up since the announcement. On hindsight, I should have just closed my BBBY position earlier.

Anyway, I had mixed results from my credit spreads play expiring last week.
  • Closed LEN credit spreads on 14 April for a profit of 36.1% (over 5 days)
  • Closed FDX credit spreads on 17 April for a profit of 22.1% (over 8 days)
  • Closed MER credit spreads on 18 April for a loss of 8.0% (over 8 days)
  • Closed BBBY credit spreads on 18 April for a loss of 160.2% (over 8 days)

PersianCat (Millionaire-in-progress)

5 comments:

Anonymous said...

Hi Very infomative blog on options trading..

May I know is there any optionable list of stocks which I can use for inputting to my amibroker charting software?

Thanks
James

Tony Chai said...

Hi Rafee :

How are you doing?

It's been a long time since we chat. Hope you're doing fine. May be the gang should meet up one day.

Tony Chai

Anonymous said...

HI Raffee,
am puzzled by the trading methodology you have employed. if you are going by the equal employment of your portfolio on each trade, the trade against you measured unfavourable to you over those that gained. How do you reconcile that and continue to be successful. thnak you.

Anonymous said...

Regarding the trading methodology I employed, I do not place equal employment of my portfolio for each trade. For BBBY trade, I did mentioned in my earlier postings that I am testing a strategy with this trade. When I test my trading strategies, I did it either with just one contract or using paper account.

Thanks for allowing me to clear the confusion.

Anonymous said...

Dear James,

Regarding the list of optionable stocks, there are thousands in the market. Typically, that should not be my starting point. If you are new, just choose a stock that has high volume consistently. Tendency is that that stock has options to trade and it also has high liquidity; which leads to smaller options bid/ask spreads... Perhaps, you could read up more on options trading or email to me directly. For a start, you could monitor those stocks that are mentioned in this blog. Thanks.