PeakTrader.com

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Mar 7th Model Portfolio (Limit Order Adjustment):

Less than 10 trades a month are expected in this portfolio. Any Limit Order adjustments will be noted one trading day in advance. Completed trades at bottom of page.

The downtrend should continue over the next few weeks and SPY Apr puts may be the best buys on market bounces. I slightly lowered the bid price for the SPY puts, because of some time value decay.

Limit Buy Orders for Wed Mar 8th:

B5) 1,000 SPY Apr 130 puts at 2.70 = $270,000

My portfolio is about $1,280,000 including about $1,280,000 in cash.

Calls Contracts

None

Puts Contracts

None

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 one day in advance. This portfolio is for investors, who are too busy to watch the market closely (commissions $1 per contract).

Completed Trades:

B1) 1,500 DIA Apr 110 puts at 1.50 = $225,000 3/1
S1) 1,500 DIA Apr 110 puts at 2.00 = $300,000 3/6 +33% return.

B2) 1,500 DIA Apr 111 puts at 1.70 = $255,000 3/1
S2) 1,500 DIA Apr 111 puts at 2.20 = $330,000 3/6 +29% return.

B3) 1,500 IWM Apr 73 puts at 1.40 = $210,000 3/1
S3) 1,500 IWM Apr 73 puts at 1.80 = $270,000 3/6 +29% return.

B4) 1,000 SPY Apr 130 puts at 2.20 = $220,000 3/2
S4) 1,000 SPY Apr 130 puts at 3.00 = $300,000 3/6 +36% return.