$200 to $2million Calendar Spread Challenge

thursday, november 12, 2009

*Profitable trade exited today.*

Right near the close, the $IWM Dec/Nov 57 Put Calendar Spread we initiated at 1.00 on November 4 hit our target and we were taken out at 1.16. After commissions, this trade resulted in a $10.96 profit which is a 10.7% gain on capital invested over 8 days. Bingo!

This trade was a tough hold. At one point early this morning, $IWM was trading at a point north of our upside breakeven point - which is a signal to close. If the market stabilized at this price (or higher) I would have exited near the close for a loss. However, the stock markets had a sharp intraday reversal, putting the trade back solidly in the green. Our open order to sell at our profit target hit in the closing minutes the market was open. I was away from my computer, so we weren't able to put the capital back to work immediately. However, that will be the first order of business at the open tomorrow. With only 8 days until November expirations, we will be looking to enter into a new calendar spread with December short options as the front month.

Thanks to today's profitable trade, our portfolio now stands as follows:

Cash: $138.28
Value of Open Position: $133.00
Total Value of Portfolio: $271.28 (35.6% gain since inception)

11/13 Update: Entered new trades today:

1 $IWM Jan/Dec 58 Call Calendar Spread @ .65 (total cost including commissions: $67.52)
1 $IWM Jan/Dec 58 Call Calendar Spread @ .64 (total cost including commissions: $66.52)

The price targets for each trade are .77 and .76 respectively.

This leaves $4.24 in cash left behind. Perfect.
 
friday, november 20, 2009

*Adjusted profit target up*

Good morning. With $IWM trading slightly below $59.00, our Feb/Dec 59 Call Calendar hit our profit target of 1.48.

Since the underlying is trading right near the strike price, it makes sense to move the profit target up another 10% and treat this as a new trade and make 1.48 our new cost of entry.

As such, the portfolio stands as follows:

Cash: $4.24
Value of Open Positions: $288.00
Total Value of Portfolio: $292.24 (+46% since inception)

That's all for now :)

Happy Trading.
 
monday, november 30, 2009

*Dubai Be Damned. Profit Target Adjusted Up*

The Thanksgiving Surprise regarding Dubai asking for a stay of interest payments on its debts may have spooked investors and traders around the world. However, over here, we're just sticking to the plan and making adjustments where necessary.

Today's adjustment is a happy one:

The 2 open $IWM Jan/Dec 58 Call spreads touched their 10% profit targets today (.76, .77 respectively, achieved in 17 days). With $IWM trading at 57.83 as I write this, we will stay in this trade and increase our profit target another 10%. The new targets are .84 and .85.

Portfolio Snapshot:
Cash: $4.24
Value of Open Positions: $307.00
Total Portfolio Value: $311.24.

Hope you had a wonderful Thanksgiving.
 
tuesday, december 1, 2009

*Moving Profit Target Up*

This morning, with $IWM trading around $59.00, our Feb/Dec 59 Call Calendar hit our 2nd price target at 1.63. Instead of closing, I'm just setting another 10% target on this trade, and now our new profit target is 1.80.

This trade was entered on 11/9 at 1.29 and has hit two 10% profit targets so far. The last hit took 11 days to achieve an additional 10% gain.

Portfolio:
Cash: $4.24
Value of Open Positions: $328.00
Total Value of Portfolio: $332.24

Open Positions:
1 $IWM Feb/Dec 59 Call Calendar entered on 11/9 @ 1.29
1 $IWM Jan/Dec 58 Call Calendar entered on 11/13 @ .65
1 $IWM Jan/Dec 58 Call Calendar entered on 11/13 @ .64
 
Foo, sorry for the post-splash. I was just posting all the previous trades that got us to this point.

All of these previous posts where first broadcast on my blog [which ET prevents me from listing here due to google ads on it].

Anyway, here is what my blog - and this thread is all about:

A BORED TRADER'S IDEA THAT HE COULD TURN $200 INTO $2 MILLION INSIDE OF ONE DECADE TRADING NOTHING BUT CALENDAR SPREADS.

What am i doing?

This blog is a living, breathing document of one Trader's attempt to answer a question he asked himself: "Can I turn $200 into $2 million within a decade, simply by trading calendar spreads?"

Follow along (even copy the trades if you'd like) as we ride the inevitable topsy-turvy waves of an ultra-aggressive approach to building wealth.

Portfolio Inception: September 24, 2009
Performance as of November 30, 2009: +56.9%

One might say I was inspired by the story of Richard Dennis turning $400 at the CBOT Mid-AM exchange into many many millions. I'm not using his strategies, but draw inspiration from his feat.
 
"watch me as I pursuit an insane strategy, and perhaps pick up some interested parties, so I can establish some buzz, traffic or paying subscribers"

3rd time this month on ET? Do these thread starters use a template to create these?

This type of thread means absolutely nothing without the OP getting independent auditing.
 
TZ -

Thanks for adding value. Your comments are clearly in the spirit of good sportsmanship and supportive adherence to the goals of the Elite Trader community.
 
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