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Weekly Update for week 42 ended 10/31/2008 Solid week, up 62K (19%). It was a week of consistent winning trades (18 of 22), although the losers were bigger than average. Tuesday was the day worth mentioning. Shorted the gap up in the SPY morning in SPY puts, closing about half an hour...

It's unbelievable someone could pull this off on an entire market (all in a matter of 45 minutes).

You are making the mistake most people make, thinking that covered calls are easy money. By the way your 19% is by the end of December, that is 2 months return not one month! The IV has not always been this high. But suppose you bought DRYS when it was at $120 a year ago, and kept writing...

Weekly Update for week 41 ended 10/25/2008 Sombre week, down 80K (20%). Got caught the wrong way on most major positions. A little gain on monday, followed by deep whipsaws on Tuesday as the market (SPY) moved from 97 to above 98 to back to 95 to 98 and back down to 95: lost 60K in stock and...

What was life like for the rich when the top tax rate was 92%? http://en.wikipedia.org/wiki/Income_tax_in_the_United_States

Market couldn't make up its mind which way to go. Whipsaws all over.

Aren't you glad Ameritrade gave you a call to tell you to cover because they didn't have the shares to lend? Try what you did at Interactive Brokers, and see whether you will get a call.

Just used that as illustration. Cutting losses at 10% does not solve the problem. You could try that on 110 down to 100 back to 110.

This is an example of what I call the "leverage handicap". You are shorting a stock in two trades. The stock goes from 120 to 100 in the first trade, and then back to 120 in the second trade. You would think that is a break-even trade (minus commissions). But it is not, especially if you go with...

You certainly have a point there. There are opportunities being thrown out now every day that at other times happen maybe once in 2 weeks. I've always told myself the difficult task is "abstaining from trades". Trying to trade when no trades with clear edges are there wears down the account...

No, not yet. Will consider that if these sweet results continue.

Miserable wretch. If that is all you can conclude after watching for 2 years, you probably have the brains of a cat.

It was 20% (balance was about 500K before the ill-fated trade). Yes, it was wayward considering it was options expiration day and scarcely in the money at the time. I think the massive gains the days before caused me to lower my guard.

From my estimate, I think the flip side of a +52% week is a -30% week, which isn't bad as long as the +52 percenters outnumber the negative ones. From my post, it is clear I suffered a major drawdown on Friday (100K or -20%) due to a wayward trade. I guess such trades help keep one on the...

Thanks. Does not happen everyweek though.

Weekly Update for week 40 ended 10/18/2008 Stellar week, up 138K (52%). Should have been up another 100K but for throwing away that much on Friday. On Monday, rode the monumental rally. Started by shorting the early rally with SPY put, hoping the market will retrace before rallying. Didn't...

Looks like "Doozy of a recession" equals "doozy of a trading opportunity"

Ameritrade. Not the best, but just OK

Hahaha. That is with the benefit of hindsight. I could have shorted TSL the prior friday and made 44% for the week, even without extra margin. Try doing that beforehand though.

Sorry to hear your story. I doubt IB would agree to re-imburse you. Their reason would be you did not have to be in possession of the stock to initial a sell, since you could sell short with the same exact order. That is one reason I do not like their interface, where all you specify is SELL...