Current Holdings

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Wow what a market this past week. I have been fliping a lot of stocks, C, fre, GS, AAPL, LVS etc

I missed the giant AIG and CHCI train by a tiny bit

Currently holding C calls, DRYS calls, LVS puts, AAPL puts, FCX puts

I think there will be a pull back this monday/tuesday and rally later in the week because GDP report comes out on thursday

Aug 12 - Aug 13

Yesterday I sold my AIG puts because im retarded. AIG fell a lot during the first 10 mins of trading but it faked up - looking like the market and AIG was trying to fill the gap. But I was a leaf and got shaken out because the market tanked and tanked really hard right after.

1 minute prior to market closing on Monday, I punched $4 calls of C at 20 cents
Yesterday C got killed so i averaged more in at 14 cents and 9 cents. Bringing my combined average of 13 cents.

Sold today when C hit 3.95 at 17 cents.

The markets gained a lot prior to the federal interest rate announcement (which we all knew would stay at 0%). But I thought the markets would react to it similar to last time. The markets last time was up about the same %, 1.5% ish prior to annoucement but after the announcment the markets declined sharpy and all the gains that day were lost.

So today I thought it would do the same, I bought C puts( I really wanted AIG puts but the were trading at a 30% premium which i thought was ridiculous). At first it looked like the markets were just going to do that but a rather surprising spike upwards occured. Nevertheless I held and am currently holding C $4 puts.

I think there will be a lot of market action tomorrow. More than likely going to go against me. Big news, retail sales, jobless claims and Business inventories. I will probably hedge myself rather than sell my puts.
If the retail sales is good, markets will probably move up 1% and vice versa.

My WMT straddles is up almost 40% since i bought it last thursday. They were undervalued by 20% at the time which I thought were odd, seemed too good to be true. Earnings out tomorrow, lets see what happens to this straddle.

Tomorrow Aug 11

Im currently holding BAC calls, C calls, AIG puts. Hedged between C and AIG.
Also got a straddle on WMT because earnings come out on Aug 13 and I noticed that these calls/puts were undervalued by 5-10%.

The volume on the S&P charts look bearish, I'm looking for a quick gap up and I'll exit C/BAC and exit when gap fills on AIG.

China has had negative news so the markets may feel that tomorrow. Theres no real news tomorrow so I expect the markets to move kind of like how they did today. Less than half a percent in any way.

Also watching GS carefully, looking for an entry put if it break 157, it should conitinue to 152-153.
Also looking to buy C shares at 3.50 ish

Aug 5

August 4th went well, the S&P followed my trendlines to almost exactly except that I thought the S&P would reach slightly higher highs.

I said I was looking to enter at 992, but when the market opened around 992, it showed signes of weakness and I did not follow through with my plan unfortunately. Stupid emotions!

Indian markets rallying, Japan markets down. S&P futures slowly trickling down, USD/JPY down, as of this moment. Yesterday looked weak, I will be looking to short S&P for a quick pullback and long FAS with possible averaging down. Also watching BAC (its a monster).

Looks like theres a lot of selling pressure, people are taking their profits.

Tomorrow August 4th

Wow, what a rally Today. S&P broke 1,000 and Nasdaq broke 2,000. This is really important because its a very clear indicator that its a bull market with new highs.

I was looking for a pull back on BAC before entering but it just keeps powering on through. Damn those people who got into BAC prefered shares at $4.00. (it pays a 25% dividend!) Missed that massive boat.

As of this post USD/JPY is down and the Nikkei closed lower than opening. Possible pullback tomorrow.

I'll be looking to enter the S&P around 992-900 and short about 1,005-1,010 and go for 3-5 point move with a stop loss of 1.5 or 2 pts. I just drew this



I took the market low which was 4 days ago and used the high to draw Fibonacci Retracements. I also drew two trendlines showing higher highs and higher lows which are great indicators of a bull market.

Tomorrow will be an interesting day going to watch the $TRIN very carefully!

Markets Tomorrow Aug 3

As of writing this post, the S&P futures are up, but looks weak. USD/JPY took a big dive over the weekend but looks like its recovering. I would like to think the markets tomorrow move sideways with a slight up or down % on the S&P, I think less than half a percent move in either direction. I'm closely looking at BAC for an entry point, going to enter on the imminent pullback.

New Squidoo Lens!

I created a new Squidoo lens with information on how to trade the morning crossover also known as pre-market. Its one of the most profitable opportunitie (if you don't know what it is, check it out!)

Stocks: Trading the Morning Crossover

New and trading this upcoming week

My current positions and watchlist include BAC, C, AMD, RIMM, GS, AAPL, LVS, AIG, POT, and a few more.
I do not trade what they call "gamble plays" such as Pink sheets or blue chips. Also I stay out of small cap, most medium caps and virtually all pharmaceuticals. The reasoning behind this is because when I worked as a day trader, I could see beyond the level 2 screen. Typically the best one can achieve at home is paying to see the Arca Openbook which you must pay a subscription fee and only shows NYSE and Archipelago ECN's.

But before, I could see all other ECN's such as Bats, EAB, EXB, Nasdaq, Bosx, MWSE, etc realtime. The advantage is that I could see stock manipulation occur right infront of my eyes on a daily basis and learned that stocks with low volume/low share price can be easily manipulated hence the probability of small cap, OTC etc being controlled by a larger entity is very plausible.

Pharmaceuticals depend too much on FDA approval of drugs. I'm not saying that you should not play them but it seems that its pretty much 50/50 as to whether the FDA approves or denies the drug. I think its best to have option spreads in those situations as a large swing in either driection will net you profits.

Hello, My name is Richard and I have decided to start a blog on trading stocks and options. But more specifically, trading option spreads with a hint on the futures market.

A little about me, I am in my early 20's and have been actively trading for 5 years. I recently worked full-time as a day trader but my firm was heavily biased towards scalping which wasn't my thing. I much prefer trend trading and playing the spreads.

This blog will cater to all demographics and will include my thoughts and strategies as they develop.
I mostly trade large cap, well known stocks as they are less prone to manipulation. In addition, I have traded and will continue to trade S&P mini futures and mini crude futures. I will elaborate more on this in my future posts. I also like to play option spreads to optimally leverage myself in the market.

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