PeakTrader.com

[administrator]

Mar 25th 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.

When SPX falls significantly below its 10-day MA, selling may be fast and furious. The best time to buy next month options are on a high or low Mon open. IWM rose sharply Fri to about 75 on lower bond yields, since interest rates influence smaller caps more than larger caps. The IWM Apr 74 puts closed at 0.90. The SPY sell orders were changed. SPX may fall from 1,303 Fri to the mid-1,280s sometime next week, i.e. above the 50-day MA, and SPY may fall from 130 1/4 to 128 3/4. Also, in a month, SPY has the potential to be lower.

Mon Buy Orders:

B12] 1,000 IWM Apr 74 puts at 0.90 = $90,000

Mon Sell Orders:

S7] 1,000 SPY Apr 130 puts at 1.80 = $180,000; B6] 3/13 2.45 X 1,000
S8] 2,000 SPY Apr 130 puts at 1.85 = $370,000; B7] 3/13 2.30 X 2,000
S9] 1,000 SPY Apr 130 puts at 1.90 = $190,000; B8] 3/14 2.10 X 1,000
S10] 1,000 SPY Apr 130 puts at 2.50 = $250,000; B9] 3/15 1.65 X 1,000
S11] 1,000 SPY Apr 130 puts at 2.90 = $290,000; B10] 3/15 1.40 X 1,000

Trailing stop losses for Mon: None

My portfolio is about $840,000 including about $120,000 in cash.

Calls Contracts

None

Puts Contracts

SPY Apr 130 2006 6,000

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):

B6) 1,000 IWM Apr 73 puts at 1.00 = $100,000 3/16
S6) 1,000 IWM Apr 73 puts at 1.00 = $100,000 3/22 -0% return.

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.

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