Saturday, July 31, 2010

UPDATE: UL long via calls

UPDATE 31-JUL-10: Exited at the $6.20 price. For a loss of 70 cents per contract. Had 8 contracts...loss of $560

UPDATE 29-JUL-10: Yesterday I went long some more calls based on %R retest of UL. So I had another $6.90 per contract on the line. Today UL got massacred and these contracts are at a mid of $5.95. The share positions I had got exited at the defined loss ($140 and $254) due to trade triggers. However, the calls are really in pain now. I tried but failed to exit today at a decent price. Tomorrow I have to unload these.



UPDATE 19-JUL-10: Trade triggers fired today and caused automatic exit in the options positions...for a loss of $192 in taxable account (I somehow get filled at $6.46 with a limit of $6.20...kudos won't see these words printed here often).
Other accounts suffered the $6.20 fill.

So losses ranged from $150 (my Roth) to $300 (my IRA)...Strange my sister's IRA had the same trade trigger and it didn't fire...wonder why...but I am glad it didn't...let her account at least have fun with this trade.

UL closed today with a %R back at 83.44 and above the accel bands.

Equity trades are still more updates to come....

Lesson here was too a tight stop and I think with some options I should put the bid and limit price further apart...
so here I should have said when the bid is $6...sell at limit $6.20...what I need to do is look at the options chart and figure out its own ATR...THAT'S AN ARCHIMEDES MOMENT...I'm gonna go run around town naked now.
Outside the band retest noticed intraday.

Again, used ATR to determine position size here...this is new for me and I am hopeful it works.

Calculator came up with

8 contracts of the November $22.50 call...Entry price is $6.70

Stop is set at $6.20

This is tight and it is due to the low ATR on UL...

So here is hoping this takes off like a rocketship.

Market was tough today big drop, 2 yr treasury yield hit an all time low...yes all time low...As a contrarian I consider this bullish for stocks bearish for bonds...but everyone says how bonds are under-owned and the bull in bond land is far from over...anyway not good for stocks for sure.

BVF did great thanks to an the folios were all performing decent.



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