Sunday, June 7, 2009
One Million Dollars
We are starting a challenge to see who can turn $1,000 into $1,000,000 the least amount of time. We will be trading stocks and options and posting our ideas. We will use free resources from the web to analyze and predict market trends. The first resource that we found can be seen below. I successfully made my first trade buying puts on MRK with a 25 strike price the stock went down almost 3% and the puts went up 50%. Join me as we see who can get to the $1,000,000 the least amount of time. We will do this as a fantasy stock portfolio. Post your trades and the times of the trades. We will use yahoo finance for the price of the stocks and options. Good luck everyone.
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buy MRKRE.X price = .20
ReplyDelete11:30 AM 6/4/09
amount = $1000
sell MRKRE.X price = .30
ReplyDelete4:00 PM 6/5/09
amount = $1500
Here is my next trade
ReplyDeleteIBMFB.X .50 $110 CALL ON IBM JUN 09
SELL TO OPEN
Here is mine to Open
ReplyDeleteContingent
When CAT = 39.5 Tigger
One - OCO (One-Cancels-Other)
Execute
Write (8) CAT $40 Call Limit $1.2 (+$960)
On Exicution Open as OCO
Buy to Close Limit CAT $40 Call $0.6 (-$480) (net +$480) account $1480
Buy to Close Stop Limit CAT $40 Call $1.45
(-$1160) (net -$200) account $800
I am glad I sold calls instead of bought puts.
ReplyDeleteEven with the IBM moving in the wrong direction by over $2 I am still only down .35c. I would have gotten completely crushed if I would have bought 105 puts. I am still confident that IBM will close under 110 by next Friday. I will be forced to buy to close my position if I see a green indicator on IBM. Lets see what impact the dividend payout tomorrow has on the stock price. it closed today at 108.14. I have an obligation to buy the 110 call options at .85 with any luck this stock will down soon and I can close my position much lower.
Picked the right direction for CAT but I was to greedy and the trade never tiggered so I am still at $1,000. I will try these for tomorrow
ReplyDeleteOne-Tiggers OCO
Write MCDRZ (MCD $62.5 Put) Market (6/9 Open Price)
Buy-To-Close MCDRZ Stop-Limit $4.10
Buy-To-Close MCDRZ Limit $2.00
and
One-Tiggers-OCO
Write CVXFM (CVX $65 Call) Market (6/9 Open Price)
Buy-To-Close CVXFM Stop-Limit $6.05
Buy-To-Close CVXFM Limit $2.50
Looks like I lost a little overall MCDRZ Open at $3.20 then hit my stop at $4.1 so I lost $90 on that trade. CVXFM opened at $6.50 and dropped to close at $6.05 for a gain of $45. So for the day I lost $45 and I am at $955.
ReplyDeleteGood day today Stock went up calls went down. A good move in the down direction and I will hopefully be able to close this out.
ReplyDeleteI added the lightning round to the bottom of the page.
Well I am in deep trouble.
ReplyDeleteI am going to have to start over.
Lessons Learned:
It is probably not a good idea to to take a short position on a stock when they are about to pay out a dividned. Many long term investors get automatic dividend reivestment.
Also Keep in mind that when the indicators move form -3 to 0 that that may be a sign that the stock is no longer going to go down.
Anyway here is the damage.
Proceeds from selling to open. $1500 @ .50 = 30 contracts buy to close @ 1.70 = $5,100 - $1,500 - $1,500 means my balance is at -$2,100 ouch.
I will have to start over.
As I mention on Friday I got 15 BZDRX BA $50 Puts at $0.6. I closed out my position at $1.2 for a tidy profit of $900 bringing my account to $1,855. For my next trick I will sell 10 DISFO DIS $23 calls at $1.3. For protection I will put a Stop-Loss in at $1.65. I will also buy 20 DISRL DIS $24 Puts at $.4 to see how they perform againts each other.
ReplyDeleteGood Luck on your second Try Jon
Today was a good day but I think that DIS still has another 2% to the downside. I will reset my stops to lockin some profit. Here are my new orders.
ReplyDeleteOne-Cancels-Others
Buy to Close 10 DISFO Stop-Limit $1.00
Gain $300
Buy-to-Close 10 DISFO Limit $0.5
Gain $800
One-Cancels-Others
Sell-to-Close 20 DISRL Stop-Limit $0.5
Gain $200
Sell-to-Close 20 DISRL Limit $0.8
Gain $800
Looks likes I could be up between $500 and $1600 unless DIS opens significantly higher.
I should have kept my IBM positon.
ReplyDeleteI could have closed it out right now for a profit of $750
I think It might be a good idea to buy puts about 2 or 3 days after a stock pays out its dividend and the price has ran up 4-5% for no other good reason.
Here is my fresh start.
BYORM.X BUY TO OPEN .46 11 contracts approx $500
Sell to close with a .10 trailing stop.
I will make sure I can only lose $110 bucks this time.
BYORM.X SOLD TO CLOSE WITH MY TRAILING STOP EXECUTED AT .91 FOR PROFIT OF $550.
ReplyDeleteNEW BALANCE $1550
I was wrong about DIS today but $500 profit is fine with me. My new total is $2355. I will reward my first double by feeding my speculative side and putting in a limit order at $.1 for 35 UUPFY contracts. Go US Dollar. I will also put in an optimistic Sell-to-Close $.5 Limit order if it exicutes.
ReplyDeleteI got that wrong but I am still at an even $2000. It looks like MSFT stalled $24 and has to go all the way back to $21.20 to retest the previous high.
ReplyDeleteOne-Tiggers-OCO
Write 200 MSQGN $22 Calls @1.75
Open Sell-to-Cover Stop-Limit $2.25
Open Sell-to-Cover Limit $0.75
It looks like the Sell-to-Cover Stop-Limit was triggered on the 29th. So I am back to $1,000.
ReplyDeleteI will pick up 100 SWGGL $1.00 with a One-Cancel-Other order, stop-limit $0.8 and limit order $5.00.