August 2003 Trades

Basic Strategy

Spread Trades

Index Trades


 

Basic Strategy Trades

This portfolio begins the first day of each month with $10,000 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.

PositionSymbol ContractsEntry CurrentProfit/Loss ValueStopGoal Close Date
PricePrice
RDN Nov$45PRDN WI 4$3.60$1.85 ($700)$740$1.80 $5.00Open
BGEN Oct$37.50CBGQ JU 4$2.90$3.20 $120$1,280$1.45 $4.50Open
QLGC Sep$47.50CQLC IW 4$2.70$2.55 ($60)$1,020$1.50 $4.00Open
SNPS Sep$65CYPQ IM 4$3.90$4.10 $80$1,640$2.50 $5.40Open
GS Sep$85CGS IQ 4$3.20$4.30 $440$1,720$1.70 $4.50Open
Total Value$6,400
BoughtSold DateContracts PriceTotalCash
$3,310
RDN Nov$45P8/4/2003 4($3.60)($1,440) $1,870
AZO Dec$80C8/5/2003 3$6.00$1,800 $3,670
LXK Oct$70C8/6/2003 4$1.00$400 $4,070
BBY Dec$42.50C8/7/2003 3$6.50$1,950 $6,020
CYMI Sep$40P8/7/2003 4($4.50)($1,800) $4,220
EBAY Sep$105C8/14/2003 4($3.20)($1,280) $2,940
EBAY Sep$105C8/18/2003 4$5.00$2,000 $4,940
CYMI Sep$40P8/18/2003 4$2.00$800 $5,740
BGEN Oct$37.50C8/18/2003 4($2.90)($1,160) $4,580
QLGC Sep$45C8/21/2003 4($3.90)($1,560) $3,020
QLGC Sep$45C8/22/2003 4$6.00$2,400 $5,420
QLGC Sep$47.50C8/27/2003 4($2.70)($1,080) $4,340
ASD Oct$70C8/28/2003 3$9.40$2,820 $7,160
SNPS Sep$65C8/28/2003 4($3.90)($1,560) $5,600
GS Sep$85C8/28/2003 4($2.70)($1,080) $4,520
PortfolioValue $10,920
AugustProfit/(Loss) $920

Spread Trades

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 Credit
7/16/03 Credit Spread BZH August

August

Buy To Open

Sell To Open

90

85

Calls

Calls

BZH HR

BZH HQ

-.95

+2.10

$1.15

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

+1.15

5

+575

$1925 0 +575* -500

This trade is a bet that BZH will be below 85 when August options expire on August 16.  Should that happen, both the options we bought, and the options we sold will expire worthless, and we will keep the $575 credit we received when putting on the play.

* This trade expired on August 16 for a profit of $575.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
7/25/03 Calendar Spread QLGC Jan

Aug

Buy To Open

Sell To Open

50

50

Calls

Calls

QLC AJ

QLC HJ

-3.90

+.45

-$3.45

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-3.45

7

-2415

0 2660 +245* -700

This Calendar Spread on QLGC requires that QLGC approaches, but does not exceed 50 when the August options expire on August 16 for maximum profit.

*This trade closed out on 8/19 for a gain of $245.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
7/31/03 Calendar Spread FRX Feb

Aug

Buy To Open

Sell To Open

50

50

Calls

Calls

FHA BJ

FHA HJ

-4.20

+.90

-$3.30

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-3.30

7

-2310

0 1855 -455* -700

This Calendar Spread on FRX requires that FRX approaches, but does not exceed 50 when the August options expire on August 16 for maximum profit.

*This trade closed out on 8/19 for a loss of $455.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
8/15/03 Credit Spread KBH September

September

Buy To Open

Sell To Open

65

60

Calls

Calls

KBH IM

KBH IL

-.45

+1.45

$1.00

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

+1.00

5

+500

$2000 -300 +200 -500

This trade is a bet that KBH will be below 60 when September options expire on September 20th.  Should that happen, both the options we bought, and the options we sold will expire worthless, and we will keep the $500 credit we received when putting on the spread.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
8/20/03 Credit Spread OVTI September

September

Buy To Open

Sell To Open

35

40

Puts

Puts

UCM UG

UCM UH

-.95

+2.00

$.1.05

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

+1.05

5

+525

$1975 -175 +350 -500

This trade is a bet that OVTI will be above 40 when September options expire on September 20th.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
8/26/03 Debit Spread BSX September

September

Buy To Open

Sell To Open

65

70

Calls

Calls

BSX IM

BSX IN

-3.20

+1.10

-2.10

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-2.10

10

-2100

$0 1350 -750* -750

Maximum profit is achieved if the stock closes just below 70 on September 20.  If this happens the calls you sold will expire worthless without costing you commissions to close out the trade, and you will sell the calls you bought at a profit.

*This trade stopped out on 8/28 for a loss of $750.


 

Index Trades

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.

PositionSymbol ContractsEntry CurrentProfit/Loss ValueStopGoal Close Date
PricePrice
QQQ Oct$30CQAV JD 4$2.90$3.70 $320$1,480$1.65 $4.25
OEX Oct$510COEB JB 1$9.30$9.70 $40$970$4.70 $13.50
Total Value$2,450
BoughtSold DateContracts PriceTotalCash
$3,280
DJX Aug$88C8/4/2003 4$3.00$1,200 $4,480
MNX Sep$120P8/7/2003 3($4.80)($1,440) $3,040
MNX Sep$120P8/15/2003 3$1.95$585 $3,625
QQQ Oct$30C8/19/2003 4($2.90)($1,160) $2,465
OEX Oct$510C8/28/2003 1($9.30)($930) $1,535
PortfolioValue $3,985
AugustProfit/(Loss) ($1,015)