ES Journal Archive (2009 - 2010)
- Thread starter Jahajee
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From the article, it looks like JPM is going to move its traders to probably trade client money rather than its own money, while Goldman is in fact getting rid of its traders.
Either way, it stated it may take forever, and this trade is more based on dividend increase article coming out in middle of Dec.
Also, if say the market moves up JPM stock before DEC, for example, I am already up on this trade, but will wait for more profits, I plan to sell an out of the money DEC call to hedge my risk and bring down the cost of the trade.
http://news.hereisthecity.com/news/business_news/11551.cntns
Either way, it stated it may take forever, and this trade is more based on dividend increase article coming out in middle of Dec.
Also, if say the market moves up JPM stock before DEC, for example, I am already up on this trade, but will wait for more profits, I plan to sell an out of the money DEC call to hedge my risk and bring down the cost of the trade.
http://news.hereisthecity.com/news/business_news/11551.cntns
I will sometimes sell a naked put or a vertical put spread on a stock I would not mind owning at a lower price. I did this with SVNT.
I don't like to do this with an index since I only use technical analysis and price action to try to determine price movements for the next 10 - 30 min.
Also, the reason I bought the SPY call, is that I thought today would be an up day, which so far it is, and all my trades have been on the long side.
However, the time decay really is not being my friend.
For example the market was down yesterday, and SVNT and SNT were not down. If I sold a vertical put in the SPY and let's say today a report came out that the missile that was fired yesterday at California was from the Chinese, I would have been killed on that trade.
I don't like to do this with an index since I only use technical analysis and price action to try to determine price movements for the next 10 - 30 min.
Also, the reason I bought the SPY call, is that I thought today would be an up day, which so far it is, and all my trades have been on the long side.
However, the time decay really is not being my friend.
For example the market was down yesterday, and SVNT and SNT were not down. If I sold a vertical put in the SPY and let's say today a report came out that the missile that was fired yesterday at California was from the Chinese, I would have been killed on that trade.
However, lets assume the market is up today, the put you sold would be profitable and the put you bought would be negative. In theory if the market stayed the same or went higher before expiration, you would in fact make money if you hold till expiration.
For my JPM call, I am looking for a specific event to move the stock price even if the market is up or down. I also like that JPM has underperformed the SPY this year, and I think its because of the dividend situation.
Again, I am also not able to predict if SPY will be up or down by expiration.
http://finance.yahoo.com/q/bc?t=1y&s=SPY&l=on&z=l&q=l&c=JPM
For my JPM call, I am looking for a specific event to move the stock price even if the market is up or down. I also like that JPM has underperformed the SPY this year, and I think its because of the dividend situation.
Again, I am also not able to predict if SPY will be up or down by expiration.
http://finance.yahoo.com/q/bc?t=1y&s=SPY&l=on&z=l&q=l&c=JPM
this is a bit more like it! Nice strong bounce
Ok. I sold the DEC $ 43 out of the JPM call just now. Now if I am called out in DEC, I will make at least $ 300 per contract if not more since the Jan call should still have time value.
I also sold my AUD currency long, I did not do it futures this time since I would have needed a stop and target and probably would have been stopped out on the trade. Instead I was able to make a profit.
The reason being I can risk less money in forex rather than futures so don't need a hard stop or target.
I also sold my AUD currency long, I did not do it futures this time since I would have needed a stop and target and probably would have been stopped out on the trade. Instead I was able to make a profit.
The reason being I can risk less money in forex rather than futures so don't need a hard stop or target.
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