October 2003 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 | ||||||||
| EBAY Nov$55C | QXB KK | 4 | $2.60 | $2.40 | ($80) | $960 | $1.70 | $5.00 | Open |
| OMC Nov$75C | OMC KO | 4 | $3.70 | $4.90 | $480 | $1,960 | OMC < 73.27 | $6.00 | Open |
| NVLS Dec$40C | NLQ LH | 4 | $3.10 | $3.00 | ($40) | $1,200 | NVLS < 36.88 | $4.50 | Open |
| CTSH Dec$40C | UPU LH | 4 | $6.00 | $6.40 | $160 | $2,560 | CTSH < 40.44 | $6.00 | Open |
| Total Value | $6,680 | ||||||||
| Bought | Sold | Date | Contracts | Price | Total | Cash | |||
| $4,460 | |||||||||
| CAT Nov$70P | 10/1/2003 | 4 | $3.10 | $1,240 | $5,700 | ||||
| ACS Oct$50P | 10/1/2003 | 4 | $3.90 | $1,560 | $7,260 | ||||
| ERTS Oct$90C | 10/2/2003 | 4 | ($5.00) | ($2,000) | $5,260 | ||||
| ERTS Oct$90C | 10/2/2003 | 4 | $7.00 | $2,800 | $8,060 | ||||
| QLGC Nov$47.50C | 10/3/2003 | 4 | ($4.20) | ($1,680) | $6,380 | ||||
| AZO Nov$95C | 10/6/2003 | 4 | ($3.60) | ($1,440) | $4,940 | ||||
| GS Nov$85C | 10/7/2003 | 4 | ($4.30) | ($1,720) | $3,220 | ||||
| BJS Oct$30C | 10/8/2003 | 4 | $6.00 | $2,400 | $5,620 | ||||
| BAC Oct$75C | 10/9/2003 | 4 | $6.30 | $2,520 | $8,140 | ||||
| QLGC Nov$47.50C | 10/9/2003 | 4 | $5.20 | $2,080 | $10,220 | ||||
| GILD Nov$60C | 10/13/2003 | 4 | ($3.80) | ($1,520) | $8,700 | ||||
| OVTI Nov$50C | 10/14/2003 | 4 | ($3.70) | ($1,480) | $7,220 | ||||
| GILD Nov$60C | 10/17/2003 | 4 | $2.30 | $920 | $8,140 | ||||
| OVTI Nov$50C | 10/17/2003 | 4 | $2.20 | $880 | $9,020 | ||||
| GS Nov$85C | 10/20/2003 | 4 | $2.80 | $1,120 | $10,140 | ||||
| SYMC Nov$65C | 10/21/2003 | 4 | ($4.10) | ($1,640) | $8,500 | ||||
| SYMC Nov$65C | 10/22/2003 | 4 | $2.60 | $1,040 | $9,540 | ||||
| AMZN Nov$55P | 10/24/2003 | 4 | ($3.20) | ($1,280) | $8,260 | ||||
| EBAY Nov$55C | 10/27/2003 | 4 | ($2.60) | ($1,040) | $7,220 | ||||
| AZO Nov$95C | 10/28/2003 | 4 | $6.00 | $2,400 | $9,620 | ||||
| AMZN Nov$55P | 10/28/2003 | 4 | $1.70 | $680 | $10,300 | ||||
| OMC Nov$75C | 10/29/2003 | 4 | ($3.70) | ($1,480) | $8,820 | ||||
| NVLS Dec$40C | 10/30/2003 | 4 | ($3.10) | ($1,240) | $7,580 | ||||
| CTSH Dec$40C | 10/30/2003 | 4 | ($6.00) | ($2,400) | $5,180 | ||||
| Portfolio | Value | $11,860 | |||||||
| October | Profit/(Loss) | $1,860 |
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 |
| 9/16/03 | Credit Spread | ADTN | October October |
Buy To Open Sell To Open |
75 70 |
Calls Calls |
RQA JO RQA JN |
-1.25 +2.25 |
$1.00 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| +1.00 |
6 |
+600 |
$2400 | -1230 | -630* | -600 |
This trade is a bet that ADTN will be below 70 when October options expire on October 17th. Should that happen, both the options we bought, and the options we sold will expire worthless, and we will keep the $600 credit we received when putting on the spread.
* This trade stopped out 10/3 for a $630 loss after ADTN pre-announced an upside earnings surprise.
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Debit |
| 10/3/03 | Bull Debit Spread | BZH | October October |
Buy To Open Sell To Open |
85 90 |
Calls Calls |
BZH JQ BZH JR |
-4.10 +1.30 |
$2.80 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| +2.80 |
8 |
+2240 |
$0 | 3040 | 800* | -600 |
Maximum profit is achieved if BZH approaches, but does not exceed the upper strike price of 90. If this happens the options we sold will expire worthless, and we'll sell the options we bought at a profit.
* This trade closed out out 10/6 for an $800 profit.
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Credit |
| 10/13/03 | Credit Spread | JCOM | November November |
Buy To Open Sell To Open |
35 40 |
Puts Puts |
JQF WG JQF WH |
-1.00 +2.10 |
$1.10 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| +1.10 |
6 |
+$660 |
$2340 | -$2190 | -$1530* | -$660 |
T
his trade is a bet that JCOM will be above 40 when November options expire. If that is the case, both options will expire worthless and we we'll keep the $660 net credit we received when putting on the trade.*This trade stopped out on a gap down due to reduced guidance on 10/21/03 for a larger than usual loss.
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Debit |
| 10/17/03 | Debit Spread | CAT | November November |
Buy To Open Sell To Open |
75 70 |
Puts Puts |
CAT WO CAT WN |
-2.75 +1.00 |
$1.90 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| -1.75 |
13 |
-$2275 |
$0 | +3275 | +$1000* | +$1000 |
Bear Put (Debit) Spreads are similar to just buying put options. The difference is you reduce the risk by selling the put with the lower strike price, the proceeds of which help you pay for the put you buy, and you limit your upside potential.
Maximum profit is achieved if CAT closes just above 70 when November options expire on November 21st. Should that happen the options we sold will expire worthless, and we will sell the options we bought at a profit.
* This position closed out on 10/28 for $1000 profit when our adjusted stop was triggered.
| Date | Trade Type | Underlying Stock | Expiration Month | Type Of Order | Strike Price | Option Type | Option Symbol | Opening Price* | Net Debit |
| 10/28/03 | Straddle | SYMC | November November |
Buy To Open Buy To Open |
65 65 |
Puts Calls |
SYQ WM SYQ KM |
-1.85 -2.75 |
$4.60 |
| Opening Debit (-) Credit (+) |
Number Of Contracts |
Cost of Trade |
Additional Margin Requirements |
Current Liquidation Value |
Profit (Loss) |
Stop |
| -4.60 |
5 |
-$2300 |
$0 | $2375 | +75 | -500 |
This trade is simply a bet that SYMC will move enough in either direction, before these option expire, that the profitability from one option will overcome the loss from the other.
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 | ||||||||
| No Open Positions | 0 | $0.00 | $0.00 | $0 | $0 | $0.00 | $0.00 | ||
| Total Value | $0 | ||||||||
| Bought | Sold | Date | Contracts | Price | Total | Cash | |||
| $5,000 | |||||||||
| OEX Nov$510 Calls | 10/1/2003 | 1 | ($12.60) | ($1,260.00) | $3,740 | ||||
| OEX Nov$510 Calls | 10/3/2003 | 1 | $19.50 | $1,950.00 | $5,690 | ||||
| OEX Nov$525C | 10/16/2003 | 1 | ($10.00) | ($1,000.00) | $4,690 | ||||
| OEX Nov$525C | 10/22/2003 | 1 | $5.00 | $500.00 | $5,190 | ||||
| OEX Nov$510P | 10/24/2003 | 1 | ($10.20) | ($1,020.00) | $4,170 | ||||
| OEX Nov$510P | 10/28/2003 | 1 | $5.20 | $520.00 | $4,690 | ||||
| Portfolio | Value | $4,690 | |||||||
| October | Profit/(Loss) | ($310) |