A Tycoon's Trading Diary

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

Monday, July 09, 2007

A good day to start off the Earnings Season

General notes
Q2 earnings season is kicking off today! Probably that's why VIX is sporting higher. Started the funding of my live trade account. Although it will take almost a week (since I have initiated the order at around 10 P.M. CET) it feels better now. Also, winning ratios from closed trades
are fine for two trading templates (100% on GAPHV - only 6 trades though, and 64% on TTC-A - with 11 trades in total).

Trade Session Notes
Nikkei...18261.98...+121.04...+0.7%.
Hang Seng
...22817.43...+285.69...+1.3%.
FTSE...6704.50...+14.40...+0.2%.
DAX
...8086.45...+38.13...+0.5%.

9:53:57 AM Market sentiment: slightly bullish
CBOE VIX 15.210.49
Market Adv Decl Unch
Nasdaq 1,196 1,036 323
NYSE 89 67 15

10:23:18 AM ET MS: unchanged
CBOE VIX 15.290.57
Market Adv Decl Unch
Nasdaq 2,636 2,558 259
NYSE 1,446 1,333 130
3 out of my 5 positions was in green this morning when the market opened (TEX, PCAR and BHP). I had to evaluate the possible exit strategies and I have decided to put a Trailing stop on .PAQHR down by 0.1 points from $6.1 (GTC). The main reason is that the underlying issue made a gap up on good volume and this contract should have been exited anyway within a dozen days or so (time exit -30 days expiration). For the other two positions I will follow as closely as possible to see if the exit is appropriate.

11:02:01 AM MS: slightly bearish
CBOE VIX 15.610.89
Market Adv Decl Unch
Nasdaq 2,430 2,962 243
NYSE 1,308 1,537 119

11:40:38 AM Trailing stop on .TEXJQ bid down by 0.1 points from 11.6 (GTC). Order sent with .TEXJQ bid @ 11.5.

12:24:54 PM MS: slightly bearish
CBOE VIX 15.450.73
Market Adv Decl Unch
Nasdaq 2,633 2,994 271
NYSE 1,342 1,580 124

2:48:50 PM MS:
CBOE VIX 15.280.56
Market Adv Decl Unch
Nasdaq 2,952 2,958 246
NYSE 1,531 1,476 120


Open Trades as of EOD 6 July
.BHPKM BHP NOV 65 Call $65.28 $5.5 $550.00 $150.00
.UPUGR CTSH JUL 90 Call $78.89 $0 $0.00 ($560.00)
Notes Break even at $4.55. Time close at 22 June, Friday. Loosing trade!
.PAQHR PCAR AUG 90 Call $88.81 $3.2 $320.00 ($80.00)
Notes Open GAPHV day 8 light retracement
.SWQSV SNDK JUL 42.5 Put $49.20 $0.23 $46.00 ($414.00)
Notes Complete looser part!!!
.TEXJQ TEX OCT 85 Call $84.67 $6.8 $680.00 ($220.00)
Notes TTC-A, watch for %Williams -50!!! bounce or not, 81.5 support