July 2004 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.

Position

Symbol

Contracts

Entry

Current

Profit/Loss

Value

Stop

Goal

Close Date

Price

Price

IBM Sep$85C

IBM IQ

5

$3.20

$3.40

$100

$1,700

$1.60

$5.00

Open

NVLS Sep$25C

NLQ IE

5

$3.10

$2.90

($100)

$1,450

$1.55

$5.00

Open

Total Value

$3,150

Bought

Sold

Date

Contracts

Price

Total

Cash

$10,000

AMZN Aug$47.50P

7/9/2004

10

($2.40)

($2,400)

$7,600

ADI Aug$40P

7/14/2004

10

($1.75)

($1,750)

$5,850

AMZN Aug$47.50P

7/19/2004

10

$3.80

$3,800

$9,650

ADI Aug$40P

7/19/2004

10

$2.25

$2,250

$11,900

APOL Aug$90P

7/26/2004

7

($4.20)

($2,940)

$8,960

MZIM Sep$45P

7/27/2004

5

($2.10)

($1,050)

$7,910

APOL Aug$90P

7/28/2004

7

$7.00

$4,900

$12,810

MXIM Sep$45P

7/29/2004

5

$1.50

$750

$13,560

IBM Sep$85C

7/29/2004

5

($3.20)

($1,600)

$11,960

NVLS Sep$25C

7/30/2004

5

($3.10)

($1,550)

$10,410

Portfolio

Value

$13,150

July

Profit/(Loss)

$3,150

Spread Trades

 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
6/14/04 Calendar Spread GDT Jan

July

Buy To Open

Sell To Open

55

55

Puts

Puts

GDT MK

GDT SK

-4.20

+1.50

$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 2880 +1200* +700

Maximum profit is achieved if GDT closes just above 55 as of expiration day for July options on July 17.

* This trade closed out on 7/16 for a profit of $1200.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
6/16/04 Bear Debit Spread ADP July

July

Buy To Open

Sell To Open

45

42.50

Puts

Puts

ADP RI

ADP SV

--1.65

+.45

$1.20

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-1.20

20

-$2400

$0 4800 +2400* -1000

Maximum profit is achieved if ADP closes just above 42.50 as of expiration day for July options on July 17.

* This trade closed out on 7/6 for a profit of $2400.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
6/17/04 Calendar Spread ESI July

October

Sell To Open

Buy To Open

40

40

Puts

Puts

ESI SH

ESI VH

+2.05

-4.50

-$2.45

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-2.45

9

-$2205

$0 1405* +225 -800

Maximum profit is achieved if ESI closes just above 40 as of expiration day for July options on July 17.

*This trade stopped out on July 12 for an $800 loss.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
7/9/04 Credit Spread ACS August

August

Sell To Open

Buy To Open

50

55

Calls

Calls

ACS HJ

ACS HK

+2.95

-.85

$2.45

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

+2.10

7

+$1470

$2030 -1610 -140 -800

Maximum profit is achieved if ACS closes below 50 when August options expire on August 21st.   If that happens, both options will expire worthless and we will keep the $1470 Credit we got when putting on the trade.

 


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
728/04 Bear Debit Spread CCL August

August

Buy To Open

Sell To Open

45

42.50

Puts

Puts

CCL TI

CCL TV

-.95

+.30

$0.65

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-0.65

30

-$1950

$0 1350 -600 -1950

Maximum profit (about 100%) is achieved if CCL closes below at or below $42.50 as of expiration day for August options on August 21st. .  (Actually, if CCL closes just above $42.50, the options we sold will expire worthless and we won't have to spend commission money to close them out.) 


 

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
OEX Sep$540COEB IH 2$11.60$10.60 ($200)$2,120 $6.00$16.50
Total Value$2,120
BoughtSold DateContracts PriceTotalCash
$5,000
MNX Aug$137.50P7/8/2004 10($2.00)($2,000) $3,000
SPX Aug$1100P7/14/2004 1($15.30)($1,530) $1,470
MNX Aug$137.50P7/14/2004 10$2.90$2,900 $4,370
SPX Aug$1100P7/20/2004 1$15.30$1,530 $5,900
SPX Aug$1125C7/21/2004 1($10.50)($1,050) $4,850
SPX Aug$1125C7/21/2004 1$5.25$525 $5,375
OEX Sep$540C7/29/2004 2($11.60)($2,320) $3,055
PortfolioValue $5,175
JulyProfit/(Loss) $175