-more musings:
Friday (late-session/close):
$7,800 (C2) open profit - $.07 or $1,750 left to erode from short and long (spread) options.
Fund @ ~15% loss. Another $350 "mistake", as I (again) was lowering my stop target for 10 PRKR Jul 12.5 call options that were eroding to "0" - and "accidentally" closed the position. We'd be sitting a lot prettier if not for the "mistakes". Perhaps C2 stats are behind me though, when an interesting graphic is displayed from clicking the "Adjusted by Realism Factor" button.
The put-call ratio remains rather high at 1.14, reflecting continuing nervousness among investors.
As the indexes now penetrate their way lower...this manager is going golfing. Cya!
Into the close...
Indexes suddenly forge to new lows - not surprising...the market is in the tank (again).
NYSE says instituted downside trading curbs.
My only regret is I couldn't get good prices for a WOTM DJX spread trade when the DJIA was off "just" 135 points or at 13,330.
I guess (if we don't get a "wild bounce"), I'll have to close my QQQ spread trade and open a new one at lower strikes to profit further from this "market correction".
Today's action is likely "sobering" for many C2 vendors.
Dow off 235/Nasdaq off 60 - to close at the lows. Vix (Cboe Volatility Index/"fear factor") reaches new all-time closing high. Vxn at (or near) its highest point since Aug 2004.
Every index has broken support (SPX/Nasdaq/NYA/RUT/MID/SML). And now the DJIA seems to want to forge further below the 132.50 lower support level. Volume did increase with the swift decline.
I've seen stranger things, though. Many weeks before (it actually happened) I actually mused: "Can it (Nasdaq) carry the market back up to new highs?", when all the other indexes were languishing or in serious disarray. We did recently witness just that (however, short-lived). A breakout by the major indexes to forge into new high territory!
Now that only the 30 Dow industrial stocks are "holding(/hovering)" around support - while the rest of the indexes plummet, will it (DJIA) pull them all back up to (what many think are) "reasonable levels"?
Coulda, woulda, shoulda got this trade yesterday:???
DJX (134.6) 137-138 9DJYHG DJYHH) looking good @ .7 x .45 spread. Will we still get another massive bounce on light volume?
Kingdom Capital Covered Call Fund (basically attempts to profit from short option sells by "accurately" targeting broad market trends) now 12.76k off the high (100k) - MUCH more reasonable and in keeping with sidestep to a down market. (I need to profit more from spreads during this correction.)
Now $7,750 open profit with $.04 of option spread left to "erode" with 3 weeks 'til expiration.
This type (stated above) of approach is not as "high-stress" impacted as "scalping" or daytrading. With the trend correctly targeted - once options are sold...you profit by simply letting time go by.
Markets will always continue to forge into new highs and have historically done so. By moving funds into covered calls at or near the bottom of a market correction, one can profit handsomely (30-100%) - with little effort. The difference between stocks trades and covered call trades is the short option provides a hedge if the stock moves down - and you benefit by getting the cash from the gain "up front".
However, once we do "top" it is imperative that these gains be preserved (or minimally lost) as the next "corrective" phase is entered. Only then can funds be compounded at a reasonably high annual growth rate for the "life of the market". Furthermore, letting the market be your guide takes a lot of the ambiguities out of fund management.
Gilbert
-the "official":
Week of August 4, 2007
Friday, August 3, 2007
Close
A bloody ending to a bloody week as sellers take the wheel. Advancing stocks outnumbered decliners by roughly 5-to-1 on both exchanges. Of 197 industry groups, 194 logged losses for the day.
The Dow Jones Industrial Average plummeted 281.42 points, or 2.09% to 13,181.91.
The Nasdaq Composite sank 64.73 points, or 2.51% to 2,511.25.
The Standard & Poor's 500 Index erased 39.14 points, or 2.66% to 1,433.06.
Paysense
I have actually grown 50% with covered calls from last August just before the "top". Since the top...about a 12% loss has been contained and I am looking for the next 30%+ rampup once I correctly spot a bottom to the market correction. Also, about 7% of the loss was my error that has since been made up with WOTM Index Option Spread trading.
Friday (late-session/close):
$7,800 (C2) open profit - $.07 or $1,750 left to erode from short and long (spread) options.
Fund @ ~15% loss. Another $350 "mistake", as I (again) was lowering my stop target for 10 PRKR Jul 12.5 call options that were eroding to "0" - and "accidentally" closed the position. We'd be sitting a lot prettier if not for the "mistakes". Perhaps C2 stats are behind me though, when an interesting graphic is displayed from clicking the "Adjusted by Realism Factor" button.
The put-call ratio remains rather high at 1.14, reflecting continuing nervousness among investors.
As the indexes now penetrate their way lower...this manager is going golfing. Cya!
Into the close...
Indexes suddenly forge to new lows - not surprising...the market is in the tank (again).
NYSE says instituted downside trading curbs.
My only regret is I couldn't get good prices for a WOTM DJX spread trade when the DJIA was off "just" 135 points or at 13,330.
I guess (if we don't get a "wild bounce"), I'll have to close my QQQ spread trade and open a new one at lower strikes to profit further from this "market correction".
Today's action is likely "sobering" for many C2 vendors.
Dow off 235/Nasdaq off 60 - to close at the lows. Vix (Cboe Volatility Index/"fear factor") reaches new all-time closing high. Vxn at (or near) its highest point since Aug 2004.
Every index has broken support (SPX/Nasdaq/NYA/RUT/MID/SML). And now the DJIA seems to want to forge further below the 132.50 lower support level. Volume did increase with the swift decline.
I've seen stranger things, though. Many weeks before (it actually happened) I actually mused: "Can it (Nasdaq) carry the market back up to new highs?", when all the other indexes were languishing or in serious disarray. We did recently witness just that (however, short-lived). A breakout by the major indexes to forge into new high territory!
Now that only the 30 Dow industrial stocks are "holding(/hovering)" around support - while the rest of the indexes plummet, will it (DJIA) pull them all back up to (what many think are) "reasonable levels"?
Coulda, woulda, shoulda got this trade yesterday:???
DJX (134.6) 137-138 9DJYHG DJYHH) looking good @ .7 x .45 spread. Will we still get another massive bounce on light volume?
Kingdom Capital Covered Call Fund (basically attempts to profit from short option sells by "accurately" targeting broad market trends) now 12.76k off the high (100k) - MUCH more reasonable and in keeping with sidestep to a down market. (I need to profit more from spreads during this correction.)
Now $7,750 open profit with $.04 of option spread left to "erode" with 3 weeks 'til expiration.
This type (stated above) of approach is not as "high-stress" impacted as "scalping" or daytrading. With the trend correctly targeted - once options are sold...you profit by simply letting time go by.
Markets will always continue to forge into new highs and have historically done so. By moving funds into covered calls at or near the bottom of a market correction, one can profit handsomely (30-100%) - with little effort. The difference between stocks trades and covered call trades is the short option provides a hedge if the stock moves down - and you benefit by getting the cash from the gain "up front".
However, once we do "top" it is imperative that these gains be preserved (or minimally lost) as the next "corrective" phase is entered. Only then can funds be compounded at a reasonably high annual growth rate for the "life of the market". Furthermore, letting the market be your guide takes a lot of the ambiguities out of fund management.
Gilbert
-the "official":
Week of August 4, 2007
Friday, August 3, 2007
Close
A bloody ending to a bloody week as sellers take the wheel. Advancing stocks outnumbered decliners by roughly 5-to-1 on both exchanges. Of 197 industry groups, 194 logged losses for the day.
The Dow Jones Industrial Average plummeted 281.42 points, or 2.09% to 13,181.91.
The Nasdaq Composite sank 64.73 points, or 2.51% to 2,511.25.
The Standard & Poor's 500 Index erased 39.14 points, or 2.66% to 1,433.06.
Paysense
I have actually grown 50% with covered calls from last August just before the "top". Since the top...about a 12% loss has been contained and I am looking for the next 30%+ rampup once I correctly spot a bottom to the market correction. Also, about 7% of the loss was my error that has since been made up with WOTM Index Option Spread trading.
