March 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
MMM Apr$130Puts MMM PF 4 $3.20 $3.10 ($40) $1,240 $1.95 $5.00 Open
OMC Apr$55P OMC PK 4 $2.55 $2.80 $100 $1,120 $1.30 $4.00 Open
Total Value $2,360
Bought Sold Date Contracts Price Total Cash
($120)
ERTS Sept$55C 03/04/2003 3 $4.50 $1,350 $1,230
CDWC Mar$50P 03/04/2003 2 $10.70 $2,140 $3,370
NOC Mar$90P 03/04/2003 3 $3.30 $990 $4,360
CTSH Mar$65C 03/06/2003 3 ($6.10) ($1,830) $2,530
CAM Mar$50C 03/06/2003 4 ($2.95) ($1,180) $1,350
CTSH Mar$65C 03/10/2003 3 $4.60 $1,380 $2,730
JCI Mar$80P 03/10/2003 4 ($4.60) ($1,840) $890
ITT Mar$55P 03/10/2003 4 ($3.40) ($1,360) ($470)
CAM Mar$50C 03/11/2003 4 $1.70 $680 $210
JCI Mar$80P 03/11/2003 4 $6.50 $2,600 $2,810
CAH June$55P 03/12/2003 3 $5.50 $1,650 $4,460
ITT Mar$55P 03/12/2003 4 $4.50 $1,800 $6,260
AGN July$65P 03/12/2003 3 ($5.20) ($1,560) $4,700
AGN July$65P 03/14/2003 3 $3.70 $1,110 $5,810
SYMC April $45P 03/18/2003 5 ($1.80) ($900) $4,910
SYMC April $45P 03/20/2003 5 $2.80 $1,400 $6,310
UTX Apr$60Puts 03/20/2003 5 ($2.00) ($1,000) $5,310
CCMP Apr$45Calls 03/20/2003 3 ($4.30) ($1,290) $4,020
CCMP Apr$45Calls 03/21/2003 3 $5.30 $1,590 $5,610
AZO Apr$70C 03/21/2003 4 ($4.00) ($1,600) $4,010
AZO Apr$70C 03/24/2003 4 $4.00 $1,600 $5,610
MMM Apr$130Puts 03/24/2003 4 ($3.20) ($1,280) $4,330
EBAY Apr$90P 03/27/2003 4 ($3.20) ($1,280) $3,050
OMC Apr$55P 03/27/2003 4 ($2.55) ($1,020) $2,030
UTX Apr$60Puts 03/28/2003 5 $3.00 $1,500 $3,530
CEPH Apr$40C 03/28/2003 4 ($3.50) ($1,400) $2,130
CEPH Apr$40C 03/31/2003 4 $2.25 $900 $3,030
EBAY Apr$90P 03/31/2003 4 $6.00 $2,400 $5,430
Portfolio Value $7,790
March Profit/(Loss) $2,790

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 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 -575 -150* -425

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.

*This trade closed on 3/20/03 for a $150 Loss.


 

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 3125 +800* -475

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

 

*This trade closed on 2/28/03 for a $800 Gain.

AZO IN sold for $7.20

AZO CN bought for $.95


 

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 -400* +75

 

-475

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

*This trade closed on 3/21/03 for a $75 Gain.


 

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 -250 +125* -375

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

*This trade closed on 3/21/03 for a $125 Gain.


 

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*

 

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.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
3/4/03 Bear Credit Spread OMC March Buy To Open

Sell To Open

60

55

Call

Call

OMC CL

OMC CK

-$.20

+$1.10

$.90

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
$.90

5

+450

$2050 --675 -225* -450

This trade is a bet that OMC will be below 55 when March options expire on March 22nd.

This trade closed on 3/21/03 for a $225 Loss.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Credit
3/5/03 Bear Credit Spread MMM March Buy To Open

Sell To Open

130

125

Call

Call

MMM CF

MMM CE

-$.50

+$1.95

$1.45

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

Current Probability of Profit
$1.45

5

+725

$1775 -1450 -$725* -725

This trade is a bet that MMM will be below 125 when March options expire on March 22nd.

*This trade closed on 3/17/03 for a $725 Loss.

Our march spread trading results was quite frustrating in that they were all good plays that had significant resistance just below the first strike price.  It took an extraordinary rally to send them into the money, and the peak of that rally coincided with March expiration day.


 

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

Current Probability of Profit
$5.65

4

-2260

$0 2020 -$240 -500 32%

 


 

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 April $410 P OXB PB 1 $9.00 $5.10 ($390) $510 $2.00 $14.00 Open
$DJX Apr$82P DJX PD 4 $4.00 $3.10 ($360) $1,240 $2.00 $6.50 Open
$DJX Apr$82P DJX PD 4 $2.00 $3.10 $440 $1,240 $2.00 $4.00 Open
OEX April $410 P OXB PB 1 $4.00 $5.10 $110 $510 $2.00 $8.00 Open
Total Value $3,500
Bought Sold Date Contracts Price Total Cash
$3,580
OEX Apr$400P 03/04/2003 1 ($10.90) -1090 $2,490
OEX Apr$400P 03/12/2003 1 $17.00 1700 $4,190
OEX Apr$380P 03/13/2003 1 $5.50 550 $4,740
MNX Apr$95P 03/13/2003 3 $3.00 900 $5,640
OEX April $410 P 03/17/2003 1 ($9.00) -900 $4,740
$DJX Apr$82P 03/17/2003 4 ($4.00) -1600 $3,140
OEX April $410 P   03/24/2003 1 ($4.00) -400 $2,740
$DJX Apr$82P   03/24/2003 4 ($2.00) -800 $1,940
Portfolio Value $5,440
March Profit/(Loss) $440