More BUPS and BCS

Today with the overall market looking more bearish, it was a good time to still enter some spreads, most of them being BCS.

Bear Call Spreads (BCS):
- RIMM (2) for Jan 110/115C, 1.54 credit (45.8% ROI)
- FWLT (3) for Jan 170/175C, 1.20 credit (31.6% ROI)
- ISRG (5) for Jan 320 330C, 3.00 credit (43% ROI)
- VMW (2) for Jan 85/90C, 1.27 credit (34% ROI)
- BIDU (2) for Jan 400/410C, 1.75 credit (21% ROI)
- SHLD (5) for Jan 105/110C, 1.37 credit (38% ROI)
- SPWR (5) for Jan 140/145C, 1.02 credit (26% ROI)
- POT (5) for Jan 150/155C, 1.42 credit (40% ROI)
- PCU (5) for Jan 105/110C, 1.57 credit (46% ROI)
- GOOG (5) for Jan 670/680C, 3.95 credit (65% ROI)

Bull Put Spreads (BUPS):
- WYNN (5) for Jan 100/95P, 1.12 credit (28.9% ROI)
- FWLT (3) for Jan 150/145P, 1.02 credit (25.6% ROI)
- BG (5) for Jan 115/110P, 0.84 credit (20.2% ROI)

I do still have BUPS and BCS that are still on and others I had to close. Here are the results of the closed ones or comments.

Still looking for a decent way to track all my Spreads in a manner that really helps me other than just my Excel spreadsheet to see what is working or not.

PARTIAL CLOSES (BUYBACK SHORT SIDE)
- AAPL BUPS entered 12/27/08 for 1.57 credit, Jan 190/185P. I bought back the short side for 7.10 on 1/2/08. As of right now, since AAPL turned very bearish, the Jan185P are $12. If I can close this trade out for this, it would give me a 185.2% return. I think this is how the BUPS are supposed to be if they turn against you and this is an ideal case.

- FSLR BUPS entered 12/27/07 for 2.70 credit, Jan 250/240P. Bought back short side $10.80 on 1/2/08. Right now the Jan240P are $10.80. This would give me a 35.4% ROI, just a little less than what I originally entered the trade for (37% ROI), so not bad.

CLOSED SPREAD TRADES
-BIDU BUPS entered 12/27/07 for 2.65 credit, Jan 380/370P. I bought back the short side for 19.90 on 1/2/08. On 1/4/08, I sold the Jan 370P for $18.24. 11.9% ROI (original ROI was 36.1%). LEARNINGS. I knew there was a strong chance that if BIDU did not continue bullish that it would turn against me and I was prepared for that. As it broke down through one of my subtrendlines, that was when I bought the short side back, which was around 392, I believe. That was still pretty far from the 380 strike, however, I know BIDU can make some huge moves in a single day and didn't want to have to buy it back for double what I did. And, today's move on BIDU landed it right on my trend support, so decided at that point to take close the trade in case it decided to bounce up on Monday, which would make sense. If it breaks through today's low, this would signify either another leg of the trend that started in August which is lower than where it is or a breaking of the trend completely. I planned my trade and traded my plan.

- WYNN BUPS entered on 12/27/07 for 1.45 credit, Jan 110/105P. Bought back the short side for $5.10 on 1/2/08. On 1/4/08, sold the Jan105P for $4.40. 18.5% ROI (original ROI was 25%). LEARNINGS. In this case, I had my stop at $112. As a chartist, if it broke down through here, then I would need to get out as I was going to shortly be ITM. My trend support was at $99.50 and the low was about $2 above that. Wasn't quite sure if it would actually go down to touch that and I just wanted to take profits. Of course if WYNN does go down to $99.50, I could've taken more profits, but I didn't know and was fine with closing the trade here. Still very happy with the 18.5% ROI.

- CMI BUPS entered on 12/27/07 for 1.90 credit, Jan 97.5/95.5P. Bought back short side for $8.60 on 1/2/08. On 1/3/08, sold the Jan92.5P for $29.10. I'm not exactly sure what happened on this trade. It was my error that I did not know a split was coming up (duh!). Know when earnings and splits are. 718.8% ROI (original ROI was 61.3%). LEARNINGS. In this case, the market paid me for screwing up. This really was an error and I am learning from this. I recognize that if I had not sold back the prior day, this really could've been a trade that cost me money.

- BG BCS entered on 12/31/07 for $1.52 credit, Jan 120/125C. Bought back short side for $4.50 on 1/2/08. On 1/4/08, sold the Jan125C for $2.52. -16.6% ROI (original ROI was 43.7%) - LEARNINGS. I had my stop set at $119 and it got triggered. I saw that it was trading into a wedge and just decided to risk it and I was wrong. The stock broke to the upside and I needed to buy back the short side. It was going strongly bullish, so just closing the short side seemed like the right thing to do. My target for the long side was 132. From middle of December to now, it's been trading in a tight trend, so as it pulled back today, I decided to jump out. This stock sometimes follow the $SPX and though the $SPX is at a very pivotable point, I just didn't want to chance it. Just wanted to close the trade. A small cost here is better than a huge one.

- PCU BCS entered on 12/31/07 for $1.10 credit, Jan 110/115C. Bought back short side for $4.25 on 1/3/08. On 1/4/08, sold the Jan115C for $0.70. -65.8% ROI (original ROI was 28.2%). LEARNINGS. This looked like it was going to be a Rising 3 Method and I really didn't want it to go ITM, but I probably could've for a period of time and still be okay as there is still time value left and I most likely wouldn't have been put the stock. Though I did see it was up against a smaller trend resistance, didn't think it would hold. It did and today things pulled back. One thing, though, PCU does often follow the market, so today's downturn could just be how the market is and it was also at a point where a turn did make sense.

------------------------------

As a side note, I wish there was a service that I could have watchlists and certain information would be provided for me:
1. Earnings (confirmation or unconfirmation, before, after, during market reports)
2. Splits
3. News

Yes, I know I can type in for each stock and get that information, but that is frankly a pain in the booty to do if you have quite a few stocks. I don't want to see ALL stocks, just the ones in my Watch List as well as be able to either sort by company or date. Is that asking too much? The service probably exists and I need to pay for it. Eventually I'll be amiable for this, but I've spent an engineer's salary on my formal trading education and want to recoup all those costs back plus go from there. For now, I'll just live with it and make a note to remember to check those things.

Just like at a very quick glance, in a regular watchlist like on TOS, you can see which stocks are more bullish or bearish under the "Watch", "TOS Index Details" area with the colorization.
0 Responses

Amazon Store