A Tycoon's Trading Diary

True story of the making of a tycoon. Options trading, trading systems, wealth, money management...

Wednesday, April 11, 2007

Can I focus on longer runs now?

General notes
After Monday's double loosing - remember no market exit at open as planned for AAPL calls and CME call closed out on stop - I am not so busy in deed to get back in trading, but discipline is discipline. Thus, I am still thinking on the right answer for the title question.

Filtered trade candidates
TTC-A: (nil)
GAPHV: TRN
MACDV: TRN

Trade session notes
While international markets where mainly up. US markets started lower.
Thus, I had to go for Tuto Puts, from scratch. By the afternoon there was only 2 candidates BG and FMD.
1:36:00 PM Placed a market order for 6 contracts of BG Apr 75 Puts and got filled at $.75. Then in a short time I have installed a hard stop at $.55.
2:06:59 PM I have placed my first ever advanced trade. It was a RIMM (when it was standing at $146.23) Long Strangle as follows:
2 contracts .RFYDK APR 155 Call @ $2.2 each
2 contracts .RFYPH APR 140 Put @ $2.5 each
Why I was doing so? Because RIMM is going to report after the close. Albeit it seems it's growing at a good rate, probably investors are already have the 'good news' rooted in the present price. Thus, I can see two scenarios: a) report is meeting expectations and prices comes down a bit or goes up somewhat, b) report misses markets expectations and then the price of RIMM crashes. I expect to get closed out on one of the stops (put at $100 risk) at market open tomorrow and the get a tight (5%) trailing stop on the remaining position. Will, see how this will work out, but I had to start to look at this one as this is the time of the year when it can be learnt.

Cross yer fingers!