April 2003 Trades
Note: This was a dismal month not suited to option trading, as we warned our subscribers. The market reacted to news about the war in Iraq, and stocks had nothing to do with the direction of the stock market. Our portfolio was caught holding puts the day Bagdad fell, and we were unable to recover. Only our spread trades were profitable.
This portfolio begins the first day of each month with $5,000 made up of the open positions from the previous month plus cash.
Disclaimer: This chart is for demonstration purposes only. No representation is made that these same returns are achieved by our subscribers. Remember, past performance is no guarantee of future results.
We suggest that when this portfolio is in negative territory most traders would best be served by standing aside.
| Position | Symbol | Contracts | Entry | Current | Profit/Loss | Value | Stop | Goal | Close Date |
| Price | Price | ||||||||
| LMT May$45P | LMT QI | 4 | $2.25 | $0.05 | ($880) | $20 | $0.00 | $3.50 | Open |
| GS May$75P | GS QO | 5 | $1.50 | $1.25 | ($125) | $625 | $0.50 | $2.50 | Open |
| Total Value | $645 | ||||||||
| Bought | Sold | Date | Contracts | Price | Total | Cash | |||
| $2,640 | |||||||||
| ATK May$55C | 04/01/2003 | 4 | ($3.10) | ($1,240) | $1,400 | ||||
| MMM Apr$130Puts | 04/02/2003 | 4 | $1.50 | $600 | $2,000 | ||||
| OMC Apr$55P | 04/02/2003 | 4 | $1.40 | $560 | $2,560 | ||||
| ATK May$55C | 04/02/2003 | 4 | $1.45 | $580 | $3,140 | ||||
| ATH June$65P | 04/04/2003 | 5 | ($2.80) | ($1,400) | $1,740 | ||||
| ERTS June$65C | 04/04/2003 | 5 | ($1.60) | ($800) | $940 | ||||
| LMT May$45P | 04/10/2003 | 4 | ($2.25) | ($900) | $40 | ||||
| IGT May$80C | 04/15/2003 | 4 | ($3.60) | ($1,440) | ($1,400) | ||||
| IGT May$80C | 04/16/2003 | 4 | $2.45 | $980 | ($420) | ||||
| QLGC May$40C | 04/16/2003 | 4 | ($2.35) | ($940) | ($1,360) | ||||
| QLGC May$40C | 04/23/2003 | 4 | $3.80 | $1,520 | $160 | ||||
| MMM May$125 Put | 04/25/2003 | 5 | ($2.70) | ($1,350) | ($1,190) | ||||
| MMM May$125 Put | 04/25/2003 | 5 | $3.70 | $1,850 | $660 | ||||
| GS May$75P | 04/25/2003 | 5 | ($1.50) | ($750) | ($90) | ||||
| ATH June$65P | 04/28/2003 | 5 | $2.00 | $1,000 | $910 | ||||
| ERTS June$65C | 04/30/2003 | 5 | $0.75 | $375 | $1,285 | ||||
| Portfolio | Value | $1,930 | |||||||
| April | Profit/(Loss) | ($3,070) |
Spread trades are based on the assumption that we have $2,500 available per trade. We offer trades as we find them. You should not try to make all trades, but pick and choose your spots.
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Debit |
| 3/26/03 | Straddle | IGT | April |
Buy To Open Buy To Open |
85 85 |
Call Put |
IGT DQ IGT PQ |
1.85 3.80 |
$5.65 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| $5.65 |
4 |
-2260 |
$0 | 2060 | -200* | -200 |
*This trade closed out 4/14/03 for a $200 loss.
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Debit |
| 4/9/03 | Calendar Spread | MMM | July April |
Buy To Open Sell To Open |
125 125 |
Puts Puts |
MMMSE MMMPE |
+$3.80 -$.30 |
$3.50 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| $3.50 |
5 |
-1750 |
$0 | 2375 | +625* | -500 |
This late month calendar spread is really just a way to buy the July $125 puts at a modest discount by selling the April $125 puts.
This trade closed out 4/16/03 for a profit of $625.
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Debit |
| 4/17/03 | Call Debit Spread | IBM | May May |
Buy To Open Sell To Open |
80 85 |
Calls Calls |
IBM EP IBM EQ |
-4.10 +1.40 |
$2.70 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| -$2.70 |
8 |
-2160 |
$0 | 3040 | +880* | 0 |
Bull Call (Debit) Spreads are similar to just buying call options. The difference is you reduce the risk by selling the call with the higher strike price, the proceeds of which help you pay for the call you buy, and you limit your upside potential. Since the call you sold moves inversely to the calls you bought, a debit spread tends to be less volatile than a basic option trade.
* This trade closed out on 4/22 for a gain of $880
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Credit |
| 4/21/03 | Bull Credit Spread | EBAY | May May |
Buy To Open Sell To Open |
85 90 |
Puts Puts |
QXB QQ QXB QR |
-1.45 +2.90 |
$1.45 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| +1.45 |
7 |
+1015 |
$2485 | -560 | +455 | 0 |
This trade is a bet that EBAY will be above $90 when May options expire on May 17th.
This portfolio begins the first day of each month with $5,000 made up of the open positions from the previous month plus cash.
Disclaimer: This chart is for demonstration purposes only. No representation is made that these same returns are achieved by our subscribers. Remember, past performance is no guarantee of future results.
We suggest that when this portfolio is in negative territory most traders would best be served by standing aside.
| Position | Symbol | Contracts | Entry | Current | Profit/Loss | Value | Stop | Goal | Close Date |
| Price | Price | ||||||||
| No Open Positions | 0 | $0.00 | $0.00 | $0 | $0 | $0.00 | $0.00 | Open | |
| Total Value | $0 | ||||||||
| Bought | Sold | Date | Contracts | Price | Total | Cash | |||
| $1,500 | |||||||||
| OEX April $410 P | 04/02/2003 | 2 | $1.40 | $280 | $1,780 | ||||
| DJX Apr$82P | 04/02/2003 | 8 | $1.45 | $1,160 | $2,940 | ||||
| OEX May$460C | 04/03/2003 | 1 | ($11.50) | ($1,150) | $1,790 | ||||
| OEX May$460C | 04/07/2003 | 1 | $16.00 | $1,600 | $3,390 | ||||
| OEX May$430P | 04/08/2003 | 1 | ($9.50) | ($950) | $2,440 | ||||
| OEX May$430P | 04/15/2003 | 1 | $5.00 | $500 | $2,940 | ||||
| OEX June $460C | 04/15/2003 | 1 | ($13.00) | ($1,300) | $1,640 | ||||
| MNX May$105C | 04/15/2003 | 3 | ($4.40) | ($1,320) | $320 | ||||
| MNX May$105C | 04/22/2003 | 3 | $6.50 | $1,950 | $2,270 | ||||
| OEX June $460C | 04/24/2003 | 1 | $16.00 | $1,600 | $3,870 | ||||
| MNX May$110P | 04/25/2003 | 5 | ($3.50) | ($1,750) | $2,120 | ||||
| MNX May$110P | 04/28/2003 | 5 | $2.50 | $1,250 | $3,370 | ||||
| Portfolio | Value | $3,370 | |||||||
| April | Profit/(Loss) | ($1,630) |