February 2003 Trades

Basic Strategy

Spread Trades

Index Trades


 

Basic Strategy 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.

Position Symbol Contracts Entry Current Profit/Loss Value Stop Goal Close Date
Price Price
ERTS Sept$55C EZQ IK 3 $5.60 $5.10 ($150) $1,530 $3.75 $7.60 Open
CAH June$55P CAH RK 3 $3.50 $3.20 ($90) $960 $2.00 $5.50 Open
CDWC Mar$50P DWQ OJ 2 $7.10 $6.40 ($140) $1,280 CDWC>46 $9.60 Open
NOC Mar$90P NOC OR 3 $4.80 $4.50 ($90) $1,350 $3.30 $6.00 Open
Total Value $5,120
Bought Sold Date Contracts Price Total Cash
$2,720
BSC Feb$65P 02/03/2003 4 $2.85 $1,140 $3,860
AIG Feb$55P 02/03/2003 4 $5.30 $2,120 $5,980
TRMS Feb$40C 02/06/2003 4 ($2.55) ($1,020) $4,960
NOC Feb$90C 02/07/2003 4 ($3.90) ($1,560) $3,400
CCMP Feb$45P 02/07/2003 4 ($3.50) ($1,400) $2,000
NOC Feb$90C 02/10/2003 4 $2.40 $960 $2,960
TRMS Feb$40C 02/11/2003 4 $3.50 $1,400 $4,360
OMC Apr$60P 02/12/2003 3 ($6.60) ($1,980) $2,380
CCMP Feb$45P 02/13/2003 4 $3.50 $1,400 $3,780
OMC Apr$60P 02/13/2003 3 $9.00 $2,700 $6,480
EXPE Mar$70P 02/13/2003 1 ($11.90) ($1,190) $5,290
CAH June$55P 02/18/2003 3 ($3.50) ($1,050) $4,240
EXPE Mar$70P 02/21/2003 1 $7.00 $700 $4,940
ERTS Sept$55C 02/21/2003 3 ($5.60) ($1,680) $3,260
CDWC Mar$50P 02/21/2003 2 ($7.10) ($1,420) $1,840
NOC Mar$90P 02/26/2003 3 ($4.40) ($1,320) $520
NOC Mar$90P 02/26/2003 3 $5.30 $1,590 $2,110
NOC Mar$90P 02/27/2003 3 ($4.80) ($1,440) $670
Portfolio Value $5,790
February Profit/(Loss) $790

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
1/23/03 Bear Credit Spread CCMP February Buy To Open

Sell To Open

55

50

Call

Call

UKR BK

UKR BJ

-$.25

+$1.10

$.85

 

Opening Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
$.85

5

+$425

$2075 -$0 +425 -425 90%

This trade is a bet that CCMP will be below $50 when February options expire on February 22nd.

*This trade expired 2/22/03 for a gain of $425.


Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price Net Debit
2/03/03 Calendar Spread QCOM July

February

Buy To Open

Sell To Open

40

40

Call

Call

AAW GH

AAW BH

-$4.10

+$0.70

$3.40

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
-3.40

6

-2040

$0 2220 180 -490* 0%

This trade is a bet that QCOM will be below, but near $40 when February options expire on February 22nd.

 *This trade closed on 2/12/03 for a $490 Loss.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price Net Credit
2/05/03 Bull Credit Spread NOC February

February

Buy To Open

Sell To Open

85

90

Put

Put

NOC NQ

NOC NR

-$.35

+$1.00

$.65

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
.65

5

+325

$2175 -75 +250 -500 90%

This trade is a bet that NOC will be above $90 when February options expire on February 22nd.

*This trade expired 2/22/03 for a gain of $325.


Date Trade Type Underlying Index Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
2/13/03 Bear Credit Spread DJX March Buy To Open

Sell To Open

87

82

Call

Call

DJX CI

DJX CD

-$.30

+$1.15

$.85

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
.85

5

+425

$2075 -375 +50 -425 73%

This trade is a bet that the DJX will be below $82 (The Dow Jones industrial average will be below 8200) when March options expire on March 22nd.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
2/24/03 Calendar Spread AZO September

March

Buy To Open

Sell To Open

70

70

Call

Call

AZO IN

AZO CN

$.95

+$5.60

4.65

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
-$4.65

5

-2325

$0 2375 +50 -475 43%

This trade is a bet that AZO will be below, but near $70 when March options expire on March 22nd.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
2/25/03 Bear Credit Spread PLMD March Buy To Open

Sell To Open

35

30

Call

Call

PM CG

PM CF

-$.35

+$1.30

$.95

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
$.95

5

+475

$2025 -625 -$150 -475 73%

This trade is a bet that the PLMD will be below $30 when March options expire on March 22nd.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
2/26/03 Bear Credit Spread GS March Buy To Open

Sell To Open

75

70

Call

Call

GS CO

GS CN

-$.30

+$1.05

$.75

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
$.75

5

+375

$2125 --725 -$350 -375 64%

This trade is a bet that the GS will be below $70 when March options expire on March 22nd.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
2/28/03 Bull Credit Spread SYMC March Buy To Open

Sell To Open

40

45

Puts

Puts

SYQ OH

SYQ OI

-$.30

+$.90

$.60

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
$.60

5

+300

$2200 --600 -$300 -300* 0%

 

This trade is a bet that SYMC will be above $45 when March options expire on March 22nd.

*This trade closed on 2/28/03 for a $300 Loss.


 

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.

Position Symbol Contracts Entry Current Profit/Loss Value Stop Goal Close Date
Price Price
OEX Apr$380P OEW PP 1 $7.70 $4.90 ($280) $490 $3.90 $15.00 Open
MNX Apr$95P MQX PS 3 $4.60 $3.10 ($450) $930 $2.95 $6.00 Open
Total Value $1,420
Bought Sold Date Contracts Price Total Cash
$5,000
QQQ Feb$27P 02/04/2003 4 ($3.10) ($1,240) $3,760
OEX Apr$380P 02/11/2003 1 ($9.80) ($980) $2,780
QQQ Feb$27P 02/11/2003 4 $2.45 $980 $3,760
MNX Apr$95P 02/18/2003 3 ($4.60) ($1,380) $2,380
OEX Apr$380P 02/25/2003 1 ($4.60) ($460) $1,920
OEX Apr$380P 02/28/2003 1 $5.00 $500 $2,420
Portfolio Value $3,840
February Profit/(Loss) ($1,160)