July preparations

1. Combined Top 20 & MC/OX ATM/OTM for July. Only those selected stocks are added to form July list.
2. Do the scanning at the end of the week. Preferably after Friday close and b4 Monday open.

cci scan:
B
M:
W: FCX, URBN
D: ANF,ANR,CLF,CNX,FCX,ISRG,MA,PBR,POT

S
M: PBR,RIO
W: AXP,CNX,MA
D:

June 13 watchlist

June 13 watchlist created.

Aim is to test stock criteria flow: MC>CCI>OX>SChart

Buy:
M:
W:
D: FDG,FLO,SY,TAP,TJX

SELL:
M:
W: HOS,IMO,INFA,MT,MUR,SU
D: BRY,CRZO,DVN,EAC,EAC,ECA,MEE,NBL,RDC,RRC

Consider:
CCI: ACI,AFL,ANR,CNX,EOG,IBM,PBR,STLD,WFT,

Sim Bull Spread

Tested on AAPL a synthetic covered call. Situation I intend to use this is when ZLR or RSI rises from oversold.

Use cc 30 200 5A ATM to screen stock. 2 strikes giving high premiums.

Stock price when bought 187.88
.apvfr@6.01 (190C)
.apvfs@-3.94 (195C)
.apvrq@-5.29 (185C)

Net credit is 3.22. BE for stock is 184.66. WWDC round the corner. iPhone 3G expected. Other surprises may be instored.

Also tried using CC 30 200 5A OTM. This time RIMM.

Stock price when bought 137.26
.rulfh@3.46 (140C)
.rulfi@-1.7 (145C)
.rulrw@-3.94 (135C)

Net credit is 2.18. BE for stock is 135.08. RIMM has new models and earnings at the end of month.

Another one is ANR. Stock @85.66
.anrfq@5.71 (85C)
.anrfr@-3.29 (90C)
.anrrq@-4.39 (85P)

Net credit is 1.97. BE for stock is 83.69. This seems to have higher ROI if assigned. However, this stock was bought at market price - try to avoid in future. China just raised coal price today so bull run expected.

Learn to see how to maintain and repair.

Be faithful. Sim trade first. Fear vs Greed ! Ultimately, have to trust.

Hold your fire

Wait for the time. It's meant to test the strategy. When premiums =ed, then u may pull. Use this time to test the exit/maintenance strategies.

19/5 Trades

Entered CC of CLF & MOS. Abt 6% ATM.

Awaiting DRYS tomorrow even though premium is good at this juncture. Don't want to go for runaways. Prudence in exercising trade will be a long term character requirements for trading.

Going for some other reading now.

13/5 Remembrance

Woode said: To predict is for slave. To react is for Kings.

To those seeing my blog, I am spending less time on the screens. Just 坐山观虎斗.

Let's see how expiration Friday goes.

Help me to be discipline, Lord !

9/5 Interesting article

Using LEAPS with covered calls

http://www.investopedia.com/articles/optioninvestor/04/021104.asp

4/5 Task for week ahead

1. Write trading plan.
2. Set up trade journal.

4/5 Trading Plan

Trading Plan:

1. Psychology: Don't exhaust yourself. Stay confident in what you believe.

2. Money Management

-If below 20%, exit positions and out for 3 months.

-5% rule for Options >$100, 2.5% rule for Options <$100.

-2 weeks into expiration, don't trade more than 2 contracts.

-No short sell until you full time trader.

3. Any New strategies, paper trade on at least 20 stocks for 1 month first. The stock market will always be there.