PeakTrader.com

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Mar 11th Model Portfolio (Limit Orders for Mon):

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

Apr options have an extra week, and expire in six weeks. Some time value decay may take place over the weekend. The SPY Apr 130 puts low Fri was 2.50, when SPY briefly rose above 128 3/4, and SPX rose to about 1,284 1/2. SPX may rise to around 1,290 Mon, before falling sharply. So, SPY may reach 129 1/4. SPY closed at 128.59 Fri with the Apr 130 puts closing at 2.70.

Limit Buy Orders for Mon Mar 13th:

B6) 1,000 SPY Apr 130 puts at 2.50 = $250,000
B7) 2,000 SPY Apr 130 puts at 2.30 = $460,000

Fri Execution:

S5) Sold 1,000 SPY Apr 130 puts at 3.40 = $340,000

My portfolio is over $1,345,000 including over $1,345,000 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 (most recent first):

B5) 1,000 SPY Apr 130 puts at 2.70 = $270,000 3/9
S5) 1,000 SPY Apr 130 puts at 3.40 = $340,000 3/10 +26% 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.

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.

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.

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.