May 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.

Note:  We have changed this portfolio back to 10,000 so we can offer a continuing stream of trades.

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
FNM June$70CFNM FN 4$4.10$4.30 $80$1,720$1.90 $5.50Open
WMT June$50CWMT FJ 4$3.90$3.10 ($320)$1,240 $2.60$5.00Open
Total Value$2,960
BoughtSold DateContracts PriceTotalCash
$9,355
AGN June$70P5/1/2003 4($3.10)($1,240) $8,115
EBAY June$95C5/2/2003 4($3.70)($1,480) $6,635
AMGN June$60C5/2/2003 4($4.80)($1,920) $4,715
GS May$75P5/6/2003 5$0.50$250 $4,965
AMGN June$60C5/6/2003 4$3.55$1,420 $6,385
LLL June$45C5/6/2003 5($2.10)($1,050) $5,335
EBAY June$95C5/6/2003 4$2.70$1,080 $6,415
AGN June$70P5/9/2003 4$1.85$740 $7,155
BBH June$100C5/9/2003 3($4.20)($1,260) $5,895
FNM June$70C5/12/2003 4($4.10)($1,640) $4,255
BBH June$100C5/13/2003 3$6.00$1,800 $6,055
SYMC June$45C5/13/2003 4($3.10)($1,240) $4,815
LMT May$45P5/14/2003 4$0.00$0 $4,815
SYMC June$45C5/19/2003 4$1.80$720 $5,535
LLL June$45C5/19/2003 5$0.85$425 $5,960
CCMP June$45P5/19/2003 4($3.30)($1,320) $4,640
KLAC June$37.50C5/22/2003 4($3.40)($1,360) $3,280
KLAC June$37.50C5/27/2003 4$5.00$2,000 $5,280
WMT June$50C5/28/2003 4($3.90)($1,560) $3,720
CCMP June$45P5/28/2003 4$2.00$800 $4,520
PortfolioValue $7,480
MayProfit/(Loss) ($2,520)

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
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 0 +1015* +0

This trade is a bet that EBAY will be above $90 when May options expire on May 17th.

*This trade expired on 5/17/03 for a profit of $1015.


Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
5/14/03 Bull Debit Spread IGT June

June

Buy To Open

Sell To Open

85

90

Calls

Calls

IGT FQ

IGT FR

-4.40

+1.40

$3.00

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-3.00

7

-$2100

$0 +2870 +770 -700

With a Bull (Vertical) Debit Spread you buy an in the money call and help pay for it by selling an out of the money call with the same expiration month.  This has the effect of limiting your upside potential, while dampening the effect of a downside move since the call you sold loses value if the stock goes down.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
5/23/03 Calendar Spread IBM Oct

June

Buy To Open

Sell To Open

90

90

Calls

Calls

IBM JR

IBM FR

-4.10

+.70

-$3.40

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-3.40

6

-2040

0 2250 +160 -500

This Calendar Spread on IBM requires that IBM stay in its recent trading range between 84.50 and 90 until June options expire.


 

Date Trade Type Underlying Stock Expiration Month Type Of Order Strike Price Option Type Option Symbol Opening Price* Net Debit
5/30/03 Calendar Spread GS Oct

July

Buy To Open

Sell To Open

85

85

Calls

Calls

GS JQ

GS GQ

-3.10

+1.10

-$2.00

 

Opening  Debit (-) Credit (+)

Number Of Contracts

Cost of Trade

Additional Margin Requirements

Current Liquidation Value

Profit (Loss)

Stop

-2.00

12

-2400

0 2700 +300 -500

 

This Calendar Spread on GS requires that GS remain near 85.  We are looking to close out this trade a day or two after June options expire.


 

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 July$490COXB GR 1$10.70$10.00 ($70)$1,000$5.70 $17.00
Total Value$1,000
BoughtSold DateContracts PriceTotalCash
$5,000
DJX June$82C5/2/2003 4($4.50)($1,800) $3,200
OEX June$80C5/2/2003 1($9.00)($900) $2,300
MNX June$110C5/5/2003 2($7.80)($1,560) $740
DJX June$82C5/19/2003 4$4.50$1,800 $2,540
OEX June$80C5/19/2003 1$6.00$600 $3,140
MNX June$110C5/19/2003 2$6.20$1,240 $4,380
DJX June$87P5/20/2003 4($3.50)($1,400) $2,980
DJX June$87P5/23/2003 4$2.20$880 $3,860
OEX July$490C5/29/2003 1($10.70)($1,070) $2,790
PortfolioValue $3,790
MayProfit/(Loss) ($1,210)