The IAU January Call Trade is continuing. The status of the trade is Code Yellow. The Jan 2013 $16.00 call options are priced at $1.05. IAU is trading at $17.04. There are 7 weeks left until the option expires.
Previous options trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Monday, November 26, 2012
Monday, November 19, 2012
Don't Be Early On A Trade
Disclaimer ** This blog post is being written as a supporting document for the author trade correctly**
One issue that has plagued the trading of the account is getting into a trade too early. Not waiting for verification of the price action has caused a couple of Code Red trades for the account.
When looking for a trade, sometimes there will be possibilities that are almost ready to trade. The price is almost where it needs to be. But there is a pretty good rule out there that tells the trader to wait until the price has completely gotten to the point needed before trading. Because of greed, some traders will ignore this rule. They think that since the trade is going to a certain point anyway, why not just purchase the options now. That way, they can save money on the price of the option and, if the trade goes well, make more money than previously projected. This account is no different.
But the result on a couple of trades (UUP put trade and USO call trade) has been the exact opposite. There was resistance and support. The trades went completely in the other direction. Had the account waited until the correct price point had been hit, the account would have saved some money.
So remember to wait for your technicals to confirm the trade. It might cost you a few dollars right away, but could end up saving you many more dollars in the future.
Benefits of Waiting For Confirmation Before Trading
One issue that has plagued the trading of the account is getting into a trade too early. Not waiting for verification of the price action has caused a couple of Code Red trades for the account.
When looking for a trade, sometimes there will be possibilities that are almost ready to trade. The price is almost where it needs to be. But there is a pretty good rule out there that tells the trader to wait until the price has completely gotten to the point needed before trading. Because of greed, some traders will ignore this rule. They think that since the trade is going to a certain point anyway, why not just purchase the options now. That way, they can save money on the price of the option and, if the trade goes well, make more money than previously projected. This account is no different.
But the result on a couple of trades (UUP put trade and USO call trade) has been the exact opposite. There was resistance and support. The trades went completely in the other direction. Had the account waited until the correct price point had been hit, the account would have saved some money.
So remember to wait for your technicals to confirm the trade. It might cost you a few dollars right away, but could end up saving you many more dollars in the future.
Bought Jan IAU $16.00 Call Options
January IAU $16.00 Call Options have been purchased for $0.95. The target price of the trade is $1.50. IAU is currently trading at $16.86. Reasons for the trade are:
- After election fall might be over
- Monetary stimulus continues
- Technical indicators (Elliott analysis) point to a rise in price
Previous options trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
- After election fall might be over
- Monetary stimulus continues
- Technical indicators (Elliott analysis) point to a rise in price
Previous options trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Sold SPY Dec $138.00 Call
The SPY December $138.00 call trade was closed Code Yellow. The option was sold for $2.25. Reasons for the sale are:
- Huge run up in SPY
- Found another trade with less time value
Previous trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC options.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
- Huge run up in SPY
- Found another trade with less time value
Previous trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC options.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Friday, November 16, 2012
New Trade in SPY December $138 Options
There is a new trade. December SPY $138.00 call options were bought for $1.81. SPY is currently trading at $136.37. The December $138 call closed trading today at $1.83. Reasons for the trade are:
- Bullish technical action today (Hammer candlestick, RSI change, bullish daily MACD change)
- Fiscal Cliff discussions going well
- Japanese Gov't announced more monetary stimulus
Previous trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC options.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
- Bullish technical action today (Hammer candlestick, RSI change, bullish daily MACD change)
- Fiscal Cliff discussions going well
- Japanese Gov't announced more monetary stimulus
Previous trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC options.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
Tuesday, November 6, 2012
New Addition To Worst Trades Ever
There had to be a full moon and there must have been a ladder walked under, a cat crossing the path, and an umbrella opened in the room. Because there is no other explanation for the mistake made on Friday.
It started with the UUP trade hitting the Code Red price and the ending of that trade happening. Hey, it happens. It is no big deal. The closing of this trade was the best part of the trading day. But what happened next was right out of crazyville.
As I was posting results on the Stocktwits account, it was noticed that Apple was getting a lot of attention for losing so much that day. It was after 2:30 Central Time. Why was Apple getting hammered so much? The price of the stock was around $576 at the time. A look at the options opened up a great opportunity; or so was thought. It showed the Nov 9, $580 calls selling for $0.03! Immediately 10 contracts were bought. The trade happened with less than 2 minutes remaining in the trading day. Major profits were on the way. But why were the options so cheap? The answer came on Sunday.
Doing research on Sunday revealed the truth. As the Optionsxpress account details page was opened, the Apple options were not in the positions section of the page. Where did they go? The quick answer is that they had expired. The options that were bought expired on November 2nd, not November 9th, as previously thought. Yes, you read correctly. Out of the money options were bought and expired within 2 minutes. The silver lining in this is that capital used for the trade did not surpass limits. At least something worked in the trade!
Here is the take away. Take your time to review your trade. Optionsxpress even has a preview trade before execution of the trade. It was completely ignored due to the time restriction. MISTAKE, MISTAKE, MISTAKE.
It started with the UUP trade hitting the Code Red price and the ending of that trade happening. Hey, it happens. It is no big deal. The closing of this trade was the best part of the trading day. But what happened next was right out of crazyville.
As I was posting results on the Stocktwits account, it was noticed that Apple was getting a lot of attention for losing so much that day. It was after 2:30 Central Time. Why was Apple getting hammered so much? The price of the stock was around $576 at the time. A look at the options opened up a great opportunity; or so was thought. It showed the Nov 9, $580 calls selling for $0.03! Immediately 10 contracts were bought. The trade happened with less than 2 minutes remaining in the trading day. Major profits were on the way. But why were the options so cheap? The answer came on Sunday.
Doing research on Sunday revealed the truth. As the Optionsxpress account details page was opened, the Apple options were not in the positions section of the page. Where did they go? The quick answer is that they had expired. The options that were bought expired on November 2nd, not November 9th, as previously thought. Yes, you read correctly. Out of the money options were bought and expired within 2 minutes. The silver lining in this is that capital used for the trade did not surpass limits. At least something worked in the trade!
Here is the take away. Take your time to review your trade. Optionsxpress even has a preview trade before execution of the trade. It was completely ignored due to the time restriction. MISTAKE, MISTAKE, MISTAKE.
Monday, November 5, 2012
UUP Option Trade Now Code Red
The UUP December $22.00 puts have been sold at a loss. The puts were sold for $0.18.UUP was trading at $22.13. Reasons for the trade are:
- The stop loss level was hit
- Confirmation of the breakout to the upside for UUP happened
- Price crossed technical SMA lines
Previous trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC options.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
- The stop loss level was hit
- Confirmation of the breakout to the upside for UUP happened
- Price crossed technical SMA lines
Previous trades include USO , IAU, PIN, SPY, XHB, FXF, and FXC options.
If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call.
**Disclaimer** - This is just trade and or futures options information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.
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