PeakTrader.com

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Mar 1st Model Portfolio (Trade Plan):

E1) 1,500 DIA Apr 110 puts bought at 1.50 = $225,000

DIA closed at 109.90, the Apr 110 puts closed at 1.75, and the Apr 111 puts closed at 2.15.

Mar 1st Limit Buy Orders:

B1) 1,500 DIA Apr 110 puts at 1.50 = $225,000 (at roughly DIA 110.40).
B2) 1,500 DIA Apr 111 puts at 1.70 = $255,000 (at roughly DIA 110.90).

Sell Orders if Buy Orders Executed:

S1) 1,500 DIA Apr 110 puts at 2.30 = $345,000 (estimate if DIA falls 2 1/2 points in one month and 53% return on trade).
S2) 1,500 DIA Apr 111 puts at 3.20 = $480,000 (estimate if DIA falls three points in one month and 88% return on trade).

L1) Trailing Stop Loss at DIA 111.20 for first week.

My portfolio is $1,000,000 including about $775,000 in cash.

Calls Contracts

None

Puts Contracts

DIA Apr 110 2006 1,500

Portfolio at $1,000,000 on Mar 1st, 2006. This model portfolio will be compared to the Trading Portfolio for performance. Each trade will consist of roughly one-fourth of the portfolio. Options will normally be held for one to three months or until price targets, including stop losses, are reached. Few trades will be made. Option buying and selling prices will be listed a day in advance. This portfolio is for investors, who are too busy to watch the market closely.