2008 trading

optradersc · #1 (**permalink**) 01-03-08, 10:48 AM

I've added $5,000 ot a trading account, and I'm looking for fast gains. Actually, I'm looking to increase this $5,000 to $75,000 by the end of the year. Is that probable? Not sure yet, as I've just started. Tune in to some wicked trading though.

llamagatekeeper · #2 (**permalink**) 01-03-08, 11:39 AM

Well, looking for fast gains can cause you many problems in the market. But, if there was a year to do it, then 2008 would be my year of choice because of the volatility. $5,000 to $75,000 could be done with options or futures, but someone else would have to give you more information on those, because I'm no expert with that.

optradersc · #3 (**permalink**) 01-03-08, 06:40 PM

Actually, I do have basic option trading experience. I bought 10 contracts of BBBY Jan. 30 puts today at $2.70 for a total of $2,715 (OptionXpress commission was $15). Pretty much used more than half of my account. I am hoping for BBBY to report weak earnings.

My reason: BBBY has been weak for most of 2007, and technically, the shares just broke below their lowest support level. I guess my speculation comes at a higher risk, but after research, this estimated risk has been dramatically reduced by the fact that BBBY would have to produce strong numbers in a weak economic time just to bounce back to yesterday's level. Overall, the advantage is to the downside.

Result: BBBY reports earnings for Q3 at $0.52 on revs $1.79B, with estimates at $0.52 on revs $1.77B. Earnings barely matched estimates with revenues a tad better, but Q4 guidance was at $0.64-$0.67 with analyst estimates at $0.78. OUCH. And down goes BBBY to the tune of -8%.

Have a good day all, and I shall be looking to reap profits tomorrow no matter how the job report fares.

Novice Investing · #4 (**permalink**) 01-03-08, 08:53 PM

Nice Call. BBBY is down 6% after hours. But I still highly doubt you can turn $ 5000 into $ 75000 year after year. Imagine how much money you would have after 5 years. My calculator shows $ 3.8 Billion. How many people have that kind of money? :-0

optradersc · #5 (**permalink**) 01-04-08, 09:17 AM

Whoa, we're getting to far ahead of ourselves here, but $3.8B after 5 years sounds good to me. I do prefer the "one day at a time" slogan though. As for today, I'm going to liquidate BBBY puts and put about $1500 each into AMZN Jan. 95 calls, and a solar stock for momentum plays. I'll have to edit the trades here after I get them.

Reason: AMZN has been fairly strong, and its recent correction was no more than 20% giving AMZN plenty of time to easily recover and be ready for the next leg up. Technically, the shares have broken a handle formation, and along with my other indicators, AMZN has a higher chance of continuing higher in the short term. (Note: the long term picture for all stocks is gloomy at this time.). As for a solar stock, this would be pure speculation, just going in with the flow. If I can get a 10-15% jump in a solar stock, I can be out before January's expiration smiling.

Updated: And look at that, the market is down big, there goes my call trades down the drain....I do have a few put trades that have been on the sideline waiting, and will udpate that in the next hour or so.

optradersc · #6 (**permalink**) 01-04-08, 11:04 AM

Okay, so it was time to part with BBBY Jan. 30 puts. So, I sold my 10 contracts of BBBY Jan. 30 puts at $5.30 for a total return of $5,285.00 (and I was fighting hard not to sell until the price moved as close to $5.40 as possible, because I really wanted to double my money). Looks like I'm heading in the right direction. After all is said and done, I'm now sitting at $7,569.96.

Well, the AMZN trade fell through, but I did use some fund to buy calls of a solar stock. I decided to buy SOLF Jan. 35 calls at $3.80. Bought 4 contracts of SOLF Jan. 35 calls at $3.80 for $1,535. The options looked so cheap as the stock opened lower on this job report, but we all know that solar stocks from China hardly follow the US market. I will update this position tonight before I close my laptop down for the weekend. Oh, and I will regret not buy FDX Jan. 85 puts at $1.45 this morning.

Novice Investing · #7 (**permalink**) 01-04-08, 11:53 AM

Quote:

Originally Posted by optradersc

Well, the AMZN trade fell through, but I did use some fund to buy calls of a solar stock. I decided to buy SOLF Jan. 35 calls at $3.80. Bought 4 contracts of SOLF Jan. 35 calls at $3.80 for $1,535. The options looked so cheap as the stock opened lower on this job report, but we all know that solar stocks from China hardly follow the US market.

So, you mean you didn't buy the AMZN call? I think most retailers are doing quite bad right now.

optradersc · #8 (**permalink**) 01-04-08, 04:19 PM

Nope, can't buy and AMZN call when the entire market is practically in a downtrend. AS for that solar stock, its quite a different story just like most oil stocks, although crude oil is down, so that's also helping in pushing the market lower.

I did add 10 contracts of FDX Jan. 85 puts at $1.65 for $1,665. I paid about $200 more than I would have because of the extra research I had to do on FDX this morning. By the time I entered, FDX was starting to break the $86 level. One more reason I bought this put was to hedge against the solar stock calls. Just hope I can come out with a break even at the end of the day. I'll post my reasons for both trades after the market closes.