Trades...

Discussion in 'Stock Market' started by Strawboss, Jun 30, 2012.

  1. Strawboss
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    Strawboss Rookie

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    Trades for last week included bought some NUGT, sold some put options on NUGT, sold some put options on JAG (small position), bought puts on RIMM, bought calls on USO.

    The JAG one is the most interesting to me. I sold the $4 Jan 13 put option on JAG. My thought process is that JAG is slightly above $1. Worst case scenario is it goes to zero and I lose $1ish. Best case scenario is that I get to keep the money... :D

    I love selling put options. 66% chance of winning if you sell the right strikes. Even when you are a bit off - you can still make good premium by closing it on a price rise in the stock.
    I would never sell calls - thats crazy. Unlimited risk.

    The USO calls are for the potential of Iran to follow through on its threat to close the straits of Hormuz when the sanctions are implemented. If they do in fact close the straits - you will see an oil moonshot.

    NUGT is because the miners have been so ridiculously beat up that the risk/reward ratio is something like 500:1 (just a guess). Considering we are just now starting wave 3 of 3 of MAJOR THREE in gold and the miners could literally explode upwards from here. Selling the put options is a reflection of how much time do I realistically expect NUGT to trade under $10 in the next 3 months - answer...very, very little.
     
  2. TruthSeeker56
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    TruthSeeker56 Silver Member

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    All of your "ifs, whens, buts, and maybes" must create a lot of STRESS in your life.

    Abandon your speculatory crap shoot, simplify your life, and secure your future financial health by BUYING SILVER AND GOLD.
     
  3. Strawboss
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    Strawboss Rookie

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    Thanks for the advice. I had never thought of that. /sarc off
     
  4. California Girl
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    California Girl BANNED

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    Actually, I'm making some seriously decent returns on farm land, and emerging economies like Brazil. But I take a more strategic approach to investing.
     
  5. Strawboss
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    Added some calls on SLW today. My puts on RIMM are dead. I forgot all about the holiday this week and wont have enough time for my targets to get hit. I will reassess RIMM later this week or early next week for another shot at some puts.

    I am hoping against hope for one more slam down in silver. I would love to see price pushed down below $26 to clear out all the stops. I have a large cash position I am waiting to deploy and will back up the freakin' truck if silver does go to sub-26.

    Here are a couple views of SLW:

    $slw1.png

    $slw2.png
     
    Last edited: Jul 2, 2012
  6. Strawboss
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    Strawboss Rookie

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    Sold my SLW calls - 160+% in one day. Love it when a plan comes together.

    Bought some NUGT puts to hedge my core NUGT holding at the close. Considered selling some covered calls, but - decided on the puts instead.

    USO calls up 70%.

    Will be rebuying SLW calls on the next dip which might be Thursday morning. Looking to sell some more NUGT put options on next dip and will be adding to my position as well.

    Expecting a correction on the 60 minute chart (or at least a tradeable dip).
     
    Last edited: Jul 3, 2012
  7. Strawboss
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    Strawboss Rookie

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    Sold my core NUGT position this morning - picked up some SLV Jan 13 $34 calls. Waiting to see how tonight/tomorrow shape up before I commit to holding a 3x levered miners ETF over the weekend.
     
  8. Strawboss
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    Strawboss Rookie

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    Below are a couple of charts for GDX (click on the small chart to expand it).

    The first chart is a daily view of GDX for 2008. The second chart is a daily view of GDX for the past year.

    $gdx 2008.png

    $gdx 2012.png

    What I see are 2 very, very similar charts exhibiting similar price action. Whether that similarity continues is anyones guess...

    I am expecting a lower open in GDX this upcoming Monday and intend to buy some calls once I get a tradeable signal.
     
  9. Strawboss
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    Added some SLW calls and sold some GDX puts today. GDX is looking very oversold on the 60 minute chart - sitting on an RSI of 40 on the daily. In an uptrend (which I think we are currently in, RSI tends to bottom at 40 on corrections. Additionally, GDX has had down days 4 days in a row. Not that it couldnt have more down days in a row, but, the odds are in favor of an up move from here.

    GDX has previously put in a low around $39. This is the first substantial correction since then. If this is truly an uptrend forming, you would expect for this low to be higher than the previous one.

    Here are a couple of charts (daily and 60 minute) for GDX:

    $gdx.daily.png

    $gdx.60min.jpg
     
  10. hortysir
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    hortysir In Memorial of 47

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    Need more lotion?


    [​IMG]
     

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