Patrick's Rants


Design By Humans

2/20/2013

Fool’s Gold

Filed under: Money,Stocks — site admin @ 6:29 pm

Today I added 200 shares of HMY to my existing position. The price this morning was down around $6.45 and I figured I could catch a round turn to sell at $7.20. As usually happens when you think you know the bottom of the chart, the market proves you wrong and HMY closed the day at $6.25. The order is in to sell 200 shares at $7.20, so we just wait.


This is my own account, published for entertainment and educational purposes. Do your own research.

2/12/2013

Closed GTE

Filed under: Money,Stocks — site admin @ 8:19 am

GTE sold this morning for an after commission profit of 14.4%. There is good news on the stock so I’m not sure I can grab it for another turn or not, but I will certainly being looking to repeat this. 14% in under three weeks… not too bad.


This is what I’m doing in my account. I post for entertainment and educational purposes. Do your own research and due diligence.

1/26/2013

GTE

Filed under: Money,Stocks — site admin @ 2:26 pm

I traded GTE a few times in 2009 grabbing around 9% on one trade and 11% on the other – at nearly half the price it is now. Yesterday I just added 300 shares to my account at $4.99 and looking for the pop to $5.78, that’s almost a 16% move before commissions and if it happens fairly quickly, a much better use of cash than waiting for 5% returns on YHOO options.


This is my account and what I’m doing – if you follow me we might both lose money. 🙂 Remember, do your own research.

1/16/2013

Nickle Back

Filed under: Money,Stocks — site admin @ 8:06 pm

Closed YHOO 15p today for $5.02. I sold the puts for $84.23 after commissions in October. Profit on the trade is $79.21. Straight calculations put the profit at 1577.89% but that doesn’t reflect the $1500.00 cash to secure the puts. That’s a simple 5.3% for just over three months, or annualized it’s 19.32%. Not too bad. As I previously wrote about YHOO, I’m looking to move onto or into something different to free up my $1,500 or better use it.


This is what I’m doing, posted for entertainment and educational purposes only. Do your own research.

1/10/2013

JRN

Filed under: Money,Stocks — site admin @ 6:14 am

Bought 100 shares of JRN at 5.20. I’m looking for JRN to move between 5.20 and 5.70 like it has a few times recently.


Do your own research, this is what I’m doing

1/9/2013

VG – Out

Filed under: Money,Stocks — site admin @ 6:50 am

I closed my 300 shares of VG yesterday at $2.49. Looking at the recent chart that’s where the resistance was coming in and looked to be the most likely price to sell. It did not perform anything like what I originally expected, but I did manage to close it for just over an 8% gain. It took nearly a year to do it too. This is the reason to look carefully at any stock for purchase. If I had not been willing to continue holding VG, I would most likely have lost money. The screeners that I run are supposed to find stocks that have positive value, actually have sales and aren’t losing money as a company. Although the screeners are not perfect, as my trades in ABAT show, they are designed to find companies that are “ok” to hold onto for a long time – if I have to.

Bottom line on VG – and trading – is set yourself some rules. You can use rules that others have come up with if they make sense to you. But set some rules. How much are you willing to invest in each stock? How much are you willing to lose on each stock? When do you cut your loses?


This is what I’m doing in my own account, I sometimes make changes that I don’t write about here – lowering my sale price on VG, for instance. You must do your own research and due diligence. The examples here are for informational, educational and entertainment purposes only. Isn’t it fun watching me lose from time to time?

1/6/2013

YHOO Recap

Filed under: Money,Stocks — site admin @ 11:37 am

YHOO has taken off like a shot recently, trading up around $20/sh. I’ve been in and out of YHOO for the past couple of years, but if the price keeps running up it could be time to look for lower cost stocks. I currently have the April 15p originally sold for $0.95 that are trading pretty darn close to my commission free nickle price so I have a good til cancel order in to do just that. The are a few reasons to move to a lower cost stock. First, to get a decent premium on the $15p I have to sell way out in time. The stock being around $20, we get two types of people willing to buy the $15p: Long term hedgers (and who is long term?) or long term speculators. Second, I have about $1500 to work with. There will be minimal price movement on a really far out $15p and the downside protection is not that great – I’m only protected down to maybe $14 on YHOO before I’m underwater. Granted, that’s a $6/30% move from here, but still.

So when the options get bought back or expire (I’m betting on buying to close) I’ll start to look for something in the $5/sh range.


Do your own research, this is what I’m doing and is for educational and entertainment purposes only

HMY Call Closed

Filed under: Money,Stocks — site admin @ 11:13 am

The 9.00 January calls in HMY were hovering close to $0.05 and since I can buy to close, or cover, with TD Ameritrade for no commissions when the options are a nickel or less I placed an order good for the day on Friday. $5.02 (exchange fees are always added) later and I have closed the call portion of my HMY position.
As I previously wrote, gold is a volatile holding and stocks do what stocks do. I don’t have a crystal ball, but do expect more volatility in my gold stock holding and look to sell the 9 call again two to three months out, this time for more than the $0.39 I got on the last roll.

The recap for HMY return on the call only sold for $0.39 and bought to close at $0.05. To be as fair as I can with this transaction I’ll allocate about half of my commissions on the buy-write to the calls (although I was only charged $0.78 for this part of the trade, it would have been more without the “buy” side). So $34.00 – $5.02 is 577.29%. Annualized it’s a ridiculous 305,699%. Let’s be a little more down-to-earth. I bought this stock because it had a great return as a buy-write stock. The total investment which includes my initial purchase and the closing transaction is $814.01. I received $38.22 for the call option for a three month return of 4.7% – annualized it’s 18.8%. Not the ridiculous number from above, but still a decent return.


Hey, this is what I’m doing in my own account. I’m posting it for entertainment and educational purposes only. Do your own due diligence.

12/21/2012

Looking for an Online Broker

Filed under: Money,Retirement,Stocks — site admin @ 6:48 pm

Send me a private email to pickme@rwcinc.net if you are planning on switching online brokers or if you need to open an account. TDAmeritrade offers bonuses (to me of course) from time to time for referrals and you can get even possibly qualify for a bonus for opening an account with them.

10/16/2012

New Position

Filed under: Money,Stocks — site admin @ 6:59 am

I added a covered call position in HMY using a buy-write order. Using the buy-write order, you can buy the stock and sell the covered call in one transaction which saves in commission costs. HMY hit my screener and I decided to add 100 shares to my account. I placed the order to buy using the January $9.00 calls while HMY was sitting at just over $8.00 for a net debit of $7.60.
Here’s what happened, HMY dropped to $7.99 and the call dropped to $0.39 – net price $7.60 plus commissions.
This one is going to be a sit and wait, but three things are possible.

  1. The price goes above $9.00 by expiration, and I have to sell for about an 18% gain (in four months)
  2. The price just kind of hangs where it is… It’s a gold mining stock; it’s more likely to be all over the place. If it just “hangs”, the calls will expire worthless, I’ll have collected about 5% premium (~15% annualized) and I’ll be looking to sell another round of calls
  3. The price drops due to labor unrest (or any other reason, including bloggers on other web sites 😉 ), I keep the option premium and have to sit on it for a while before being able to sell more calls or close my position.

Disclaimer: This is what I’m doing, it’s for entertainment and educational purposes only. I don’t expect you to follow my lead in any way shape or form. I expect you to do your own research, to make up your own mind and take responsibility for your own actions.

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