Archive for the ‘Option Trading’ Category

Closed AMD PUT Option/LEAPS Position – 15% Return

Wednesday, July 25th, 2012

Shorted AMD with PUT option/LEAPS 15% return
I recently closed off a few AMD PUT option contracts/LEAPS. These were AMD PUTS for January 2014 at a strike price of $4.00. I purchased these when AMD’s share was trading around $6.75 (contract price was $0.53) and sold the contracts when AMD’s share price hit $4.26 (contract price was $0.91). See above MetaStock chart.

Quants: The Alchemists of Wall Street (Marije Meerman, VPRO Backlight 2010)

Tuesday, July 24th, 2012

Here is a great documentary on Quants. Those genius mathematicians that come up with financial products to be sold to investors. Some of the formulas they come up with are so complicated that the people that sell them don’t understand them.

The investors do not understand the consequences of these financial products as well. Well, heck even the Quants do not know the true extent of the consequences if these products react to unforeseen circumstances. Some of these products were responsible for causing the 2008 crash due to complicated credit default swaps and mortgage backed securities.

Shorting NASDAQ Decline , AMD Puts and Silver Bull ETF – VBLOG5

Wednesday, June 20th, 2012

I am going to short the NASDAQ and at the same time PUT options on AMD for Jan.2014 with strike price of $4.00 and also long on silver with ETF.

The above trades would have to wait though if the Federal Reserve decides to print more money and lift the markets of course. If Ben Bernake does do that then the decline probably won’t happen until after new year (Feb. 2013).

Gold Will Rise Again: Mike Pento Sees $1800 By Year-End

Thursday, June 7th, 2012

Stocks Aren’t Cheap Enough to Buy Now: Stein

Tuesday, May 8th, 2012

I agree with Ben Stein here. The market is at the top for now, so buying stocks here would be stupid, I rather wait for a correction (mini-crash). Even after the mini-crash you still have to be careful though.

Caution Is Key In The Stock Market Over The Next Little While

Monday, April 16th, 2012

Points covered:
- Some disappointments into earnings season
- China slowing
- Unemployment rising
- By August markets “might” turn around a little

Stock Markets To Take A Dump Soon – Record Low Volume is Setting Up The Market For A Crash

Sunday, April 8th, 2012

Markets to go down soon (1-3 months)
I’ve been saying this since early February, that the markets has topped and is going to roll over, but usually when trying to predict a top or reversal timing is never easy or accurate. Sometimes, it could go on for months, generally market Euphoria carries on for longer than usual and is unpredictable.

I am now anticipating the crash to happen in May/June period this year, but then again I can be wrong. The magnitude will be 5-10% correction.

Why Are Americans (Retail Investors) Avoiding Stocks? Then Why Has The Stock Market Hit New Highs?

Wednesday, March 21st, 2012

retail investors avoiding stocks
If everyday investors refuse to jump in and they have pulled $19 billion from funds that invest in U.S. stocks in December 2011, according to the Investment Company Institute, and $2 billion more in January 2012 for a total of $21 billion pulled from the stock market. Then ask yourself who has been pouring money into stock market over the past 3 months to make the market hit all time highs??

Stock Market is Rigged and Everyone Knows It – Have You Notice That Stock Market Has Not Gown Down Since October 2011

Monday, March 12th, 2012

Biderman’s Daily Edge 3/9/2012

Something is not right.

Is the Market Rigged? Absolutely, Says Streettalk Advisors CEO

Friday, March 9th, 2012

Small investors can play in the market, but they need to concentrate on longer, weekly chart trends. In the short-term minutes, hourly trading the small guys can get crushed by Program Trading/HFT (High Frequency Trading).

Waiting For Nasdaq to Correct, Looks Like It Is Close At Hand

Thursday, March 8th, 2012

Daily Chart
Nasdaq composite weekly chart

Weekly Chart
Nasdaq Composite ,march 2012 weekly chart
Based on a few factors, my charts as one of the major factor I am concluding that the Nasdaq is nearing a top, after over shooting its 2 year high of around 2860 all the way up to 3000 points.