PeakTrader.com

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Apr 16th 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.

Trading shorter-term options caused greater risk in this portfolio, in particular, because of one large trading mistake. Eventually, this portfolio will shift into only longer-term options, e.g. three months out. The DOW May 40 calls sell order was executed and the OEX Apr 580 calls sell price is raised. The TICK MAs suggest either SPX will break above 1,292 resistance, on a TICK buy signal, or pullback and fall further, if the TICK sell signal is maintained. OEX closed at 584 1/2 and SPX closed above 1,289. If SPX rises to 1,295, OEX should rise above 587. A buy order may be placed before Mon.

Fri Execution:

Sold DOW May 40 calls 1.20 X 1,000 = $120,000

Mon Buy Orders:

PPH Apr 70 calls 0.30 X 1,000 = $30,000
PFE May 25 calls 0.35 X 1,000 = $35,000

Mon Sell Order:

OEX Apr 580 calls 8.50 X 1,000 = $850,000

Mon Stop Loss:

OEX Apr 580 calls at 4.00 = $400,000

My portfolio is about $800,000 including about $130,000 in cash.

Calls Contracts

OEX Apr 580 2006 1,000

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):

B9] 1,000 DOW May 40 calls at 0.90 = $90,000 4/11
S9] 1,000 DOW May 40 calls at 1.20 = $120,000 4/13 +33% return

B8] 1,000 IWM Apr 74 puts at 0.90 = $90,000 3/27
S8] 1,000 IWM Apr 74 puts at 0.60 = $60,000 4/10 (-33% return).

B7) 6,000 SPY Apr 130 puts at 2.033 = $1,220,000 3/13 to 3/15--Combined Order
S7) 6,000 SPY Apr 130 puts at 1.25 = $750,000 4/10 (-39% return).

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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