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| The Option Premium Collector |
| The purpose of this blog is to share my investment philosophies as well as my trades and put them up for discussion. As the name of the blog indicates I primarily sell put and call options and collect the premiums. |
| Language: English |
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| Total Unique Visitors: 564301 |
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| Big Family Week |
| 2009-04-04 08:55:49 |
Hey all. It's my daughters birthday and we went camping. Today is a big party. I'll be back next week. Best wishes and good trading to all....
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| Not fighting the tape, Fed and Treasury |
| 2009-03-25 09:19:13 |
Anyone who reads this blog knows I think the market is going to tank big time at some point. Capitulation is a descriptive term I'm especially fond of.In the short term, however, I am riding the bull. I'm not solvent enough to fight the tape, the Fed and the Treasury. They are throwing mind boggling resources at the problem. This is causing a lot of money on the sidelines to now take risk with securities. I don't think that's very smart but I'm not going to fight it. A good trader is an adaptive trader.I'm long FAS, SPY, GE and GLD with calls. As soon as fear starts building up again they will be closed out and I'm trading the other way. The Fed and Treasury have fired almost all of their bullets and if they are not successful the market will panic....down to single digit P/E's. When fear ...
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| Gilley's |
| 2009-03-24 09:10:02 |
The Fed and Treasury are drunk and riding the bull like they're at Gilley's. Short term the market likes it and some are calling a market bottom. I'm not buying it. Printing money to buy our own debt and banker's toxic assets isn't the solution.Short term we may be bullish but before this bear market is finished we will be in single digit P/E's. As a trader I've bought some FAS and SPY calls so as not to fight the Fed, the Treasury and the tape. These are very short term trades.I sold some XLE 35 puts yesterday because with the pressure on the dollar, commodities such as oil will probably not drop all that much. It was my first sale of premium in a while.Interesting times.....
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| Capitulation |
| 2009-03-21 16:56:54 |
I don't know when it's going to happen but capitulation is definitely in the cards. Right now there is a decent bull/bear tug of war going on with the Fed riding the bull like they're at Gilley's.We are in a depression not a recession. In past recessions the bear market left stocks with single digit P/E's and investors running for the hills supposedly never to return. But they did return after it was clear that the bear had ended and the bull was underway. Only problem was they missed the most violent leg up. The old sell low buy high maneuver. If stocks went to single digit P/E's after recessions where are they bound to go after this historic fiasco and depression we find ourselves in?I can't say where the market is going this week or next but I am confident we will ultimately see capitul...
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| Sold SPY puts for 38% gain, holding FAZ |
| 2009-03-20 16:14:12 |
I didn't want to hold the SPY Mar (10 days to expiry) 75 puts over the weekend so I took the gain. My FAZ April 30 calls that I bought for 6.00 ended with a bid/ask of 9.70/10.00. I'm letting this one run. I would have held the SPY's but time decay was going to start being an issue and if it looks like the final down dive I'm expecting I'll just jump back in.TBT and GLD calls haven't moved much. I think TBT's three point drop after the Fed announced it's buying our own Treasuries was an overreaction. These yields have to rise. My GLD calls are June 94's and with the world crapping on their currencies I expect this to continue to rise. I also think precious metals will rise as the market takes it's next fall.After the next fall assuming it's a capitulation I will be looking to write out of ...
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| Bought SPY puts and FAZ calls |
| 2009-03-19 12:46:24 |
Made some bets that the market drops after a hefty runup. The Fed's actions seem more out of desperation than anything. The numbers they are putting out to battle the crisis are mind boggling....
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| Long GLD and TBT calls |
| 2009-03-19 08:40:18 |
Gold is soaring as the Fed's action will weaken the dollar. I took the TBT bet because I don't believe the Fed will be able to keep yields that low and all they've done is reinflate the Treasuries bubble. We'll see....
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| Bought JPM Jun 10 puts |
| 2009-03-13 16:20:47 |
I keep wondering why JP Morgan isn't as cheap as BAC and C. Evidently Jim Rogers is wondering the same thing as he's heavily short JPM. The stock does keep making lower highs and lower lows, however. I purchased these puts at what I see as the new lower high. I've bought some time since we seem to be engaged in a pesky cyclical bull within the long term secular bear. Stop losses and conservative position sizing are in place to manage risk....
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| Rosy news from banks...huh? |
| 2009-03-13 08:30:34 |
It started with Citi Chairman Pandat leaking a letter that Citi was profitable. Today another Citi top exec is quoted as saying Citi needs no more government money and is one of the most healthy banks out there. Bank of America says they are interested in writing new jumbo loans and that Merrill Lynch and Countrywide were terrific acquisitions. To put there money where their mouth is they are hiring a bunch of people to write these jumbo loans.Huh? Isn't this just a response to their being strings attached to free money? Isn't this just a concerted effort to show lack of stress before the government stress tests? Or are things suddenly better? Have home prices suddenly dropped dropping?Personally I don't buy it for a second but it's great for my FAS calls. I'll be slowly moving up my trail...
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| WTF is with ERX? |
| 2009-03-12 21:39:08 |
ERX the 3X Energy Bull is down when the market and oil are both up substantially. I'm preparing a letter for my Congressman...[Note: If I would have bought ERX calls instead of posting this bit of silliness I'd be worth a few more ducketts.]...
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