Monday, January 5, 2015

Trading summary: holy market implosion batman!

Today was ugly if you're a long-only investor.  Unless you had already gone to mostly cash and are now starting to buy into some choice picks. Even the hardened energy/oil bears are now changing their tune saying "it can't go any lower" and surprise surprise, it does.

But enough of my 2-cents worth which nobody cares about.  Here's the brick for today's trades:

1st move of the day: NEW position
ZMH - A healthcare company that makes replacement hips and such.
2 contracts, JUNE expiry on a $100/95 bull put spread
$0.74 credit ($74) per contract
ROC 17% (for worthless expiry)
ROR 37% (for worthless expiry)
Max loss $426 per contract
If necessary, I'll take assignment if it's in the range at expiry.

2nd move of the day: rolling the front month of a calendar spread
rolling trade in progress.  Rolled out to the next quarterly for a $1.70 credit per contract.  So far, I'm still in perfect shape with the stock price being very close to my strike.  If it goes up, I'll start adding a bit of risked capital.  However at this point, now that I have paid for the position, my additional risk is exactly $0 because my long and short puts are the same strike.

3rd move: MDA - A Canadian Aerospace company
3 contracts, APRIL expiry on a $86/82 bull put spread
$0.60 credit per contract
ROC 17%
ROR 58%
Max loss $340 per contract
Again, this one I wouldn't mind owning, so I'll take assignment at expiry if it's in range.

Stay HUNGRY my friends.

1 comment:

  1. Ugly or pretty market I intend to invest every single month. I already saw my entire portfolio deep in the red in 2009 and questioned if I did the right thing or not. I did not sell one share just kept on investing every month as I do today. Thanks for sharing your trades with us. Look forward to seeing your 2015 progress.