6 results for month: 05/2015


If you trade options, there are 10 things that you must do!

The new web site is almost ready. Check back often.  1. Realize that you are starting a business. You are not just throwing some money at the market as if you were in a casino. You are in the trading business and you have a few million very smart and very rich competitors. Become an expert at some aspect of the trading business, or you will lose. 2. You must do the accounting for your trading business. You have to know how much money you are making or losing every day. You cannot justify losses in one symbol because you are making some money elsewhere. Losing money is losing money. 3. You can't lose money. If you let your account size shrink, ...

WalMart trade 5/26

chart provided by www.metastock.com The new web site is almost finished. Check back next week! We continue to struggle in our efforts to make WMT profitable for the year. Today, the market is down about 1% and our WMT position is down $1 per share. WMT is in a long term bear market and has fallen from $91 to $75 since January. We own 900 shares in the portfolio. As stockholders, we would be down over $14,000 on this position. As option traders, we are now down $3000. The option sales against the long stock position have brought in $11,000 this year, so with the 900 shares of WMT we are creating about $2000 a month of income. This does not ...

P&L is the only thing that matters.

Profit and Loss is everything. If you are a trader, nothing else matters. It doesn't matter how many charts or indicators you have, it doesn't matter how many TV shows you watch or how much you read. It doesn't matter if you can calculate possibilities all day long. What are you looking at on your screen? Every time I look at my screen(s) there is one number that always has my attention. That number is my P/L Day, or my Profit and Loss for today. There is a second number right next to it and that is my P/L YTD - or my Profit and Loss Year to Date. If these numbers aren't increasing, then I want to know about that right away. Nothing else matters...

WalMart May 21

WalMart is up today so we are selling calls again. We have sold seven 76 calls (expiring tomorrow) for about 40 cents each. This is a very short term attempt to catch the income available during the last two days of this weekly option series. This is an advanced trade, and is not right for everyone. We still have orders in place to sell two more calls. Our current Year to Date loss on WMT is about $2000 after adding in a dividend which has not yet been paid. Our position is, once again, a covered call at the 76 strike. We are long the same 900 shares of WMT and short 7 weekly 76 calls. Our daily time decay is over $100. The plan is to leave the ...

WalMart – What to do?

Today (5/19/15), WalMart released earnings that were a disappointment to the market. The stock is down well over $3, so most WMT owners are feeling quite a bit of pain today. We are not feeling that pain Our Deep Pocket position is just fine. Our analysis of WMT has put it in a bear market since mid-February. We have continued to trade it, but without any expectation that the stock would be rising. It has continued to decline from about $91 in January to the mid-70's today. We expect more of the same until proven otherwise. We should trade WMT so that we can maximize the daily decay knowing that we can eventually turn this into a profitable ...

Out of Apple, Rolling WMT options to next week.

Our new website will be up soon, and at that time we will start accepting subscriptions again. Also, at that time, this WordPress blog will close and migrate to DeepPocketOptions.com. Please check back often and plan to subscribe when we open! ___________________________________________________________________ No Apple position. We are out for now. Today, we closed our 2 short 123 weekly puts for 5 cents. Our total profit for AAPL year to date is $3263. We have done this entirely by selling put contracts, one contract at a time. There have been 43 different orders placed since the start of the year. We have never owned a single share of AAPL, ...