Hello CC writers:
Not a whole lotta activity when we are cashed out - waiting for the market to "follow-through" for my covered call approach. But patience is a key part as we do not want to jump the gun if indeed the market has not bottomed out.
We can make sharp gains very rapidly under the "Green Light" - but it is critical to minimize losses and keep sound stop rules, since growth stocks can lead sharply on the way down!
Our 2010 Model Portfolio is now into 100% cash and with a -1.26 ytd return - which currently out-performs the market.
Will keep you posted.
G
--- In ConservativeOptionS
>
> This year-2010 would be very challenging year for all traders and no doubt 2010 would not the same in terms of market behavior. An appropriate strategy to be applied for being successful in the trading battle.
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> -----Original Message-----
> From: Gilbert Arevalo <gilbert_arevalo@
> To: ConservativeOptionS
> Sent: Sat, Feb 6, 2010 11:04 am
> Subject: Fw: [ConservativeOption
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> Just a re-post of my 2010 Model Portfolio. There has been no change from last week (or the week before) when my timely cash out of all positions. My "Stop Losses" call once again has proved prudent (this method has worked for more than 10 years) as the indexes have fallen nearly 10% or a much anticipated "correction"
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> Once we see a "follow-through" confirmation, we can again begin to phase in or "test the waters" selling high-yielding covered calls. For now we are in our "wait-and-see" mode. If you were to see my past performance charts you will see an uncanny timeliness with each new emerging uptrend - so stay tuned. Once the excess froth is wrung from the market some very heady gains will quickly stack up.
>
> I will now be working on incorporating "add-in" features to my option price spreadsheets so (ask) prices can be automatically retrieved from the Web. I (and volunteers) enter this data to further update my CC Candidates list with the highest and best performing (technicals and fundamentals) CC picks, so we are ready when a new uptrend emerges. If you can help me in my effort I am greatly appreciative toward you. Please contact me if you'd like to work beside me.
>
> Be sure to download my excel spreadsheet in the files section. It contains all of my trades with updated graphs. If you were to log each trade on paper or in your account - by experiencing these repeated market cycles: cashing out using our stop-loss methods during a downtrend, ramping up gains during an uptrend and the occasional use of margin during the most optimal periods - as well as executing patience during times like this when we only update our Covered Call Candidates watchlist...
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> Of course you will see me do this right before you at the Conservative Options Strategies Group. Meanwhile, I thought it would be interesting to look at stocks we were stopped out of in 2010 and their current price and Friday's intraday low. You see yesterday's leaders are not necessarily going to be tomorrow's leaders and juicy premiums along with recovered stock prices most always never return. Yes, many sell relatively small OTM calls on stocks for months or even years trying to recoup losses. When I can gain 4-8% per month during optimal market periods - having the majority of your portfolio tied up and underwater (imho) is pointless.
>
> HEAT
> stopped 08-JAN-2010: 17.13
> current price: 11.19
> intra-day low: 10.21
> ASIA
> stopped 12-JAN-2010: 28.60
> current price: 23.66
> intra-day low: 22.44
> VIT
> stopped 13-JAN-2010: 19.46
> current price: 15.75
> intra-day low: 14.79
> STEC
> stopped 20-JAN-2010: 17.83
> current price: 14.45
> intra-day low: 14.00
> NANO
> stopped 21-JAN-2010: 11.02
> current price: 8.49
> intra-day low: 7.98
>
> To truly compound returns one must afford the time and energy to obtain disciplined management skills and experience all market behaviors. Gaining a high annual average with strict risk control will compound powerfully for years. My simple, hands-on, trade-by-trade training approach has worked for many, but only for those with some patience and focus. The end result is well worth it - even when gains aren't being made right now. This time now is still a part of the learning process and within the next 6 to 18 months it will become apparent that my simple routine can compound an account 5-fold in 4 years and 25-fold in 4 more. Max DD (drawdown) is 20% or a 2.5 Calmar Ratio. I'm not sure of your experience, but I do not think any system can grow at this rate over 5-10+ year periods.
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> Perhaps a volunteer will want to calculate the loss a "buy-and-hold" investor will need to recoup in the above examples. Perhaps some may like to share their holdings that got caught underwater and what you plan to do. Others have simply gotten into less risky option trade setups that of course cannot compound as powerfully with a lower rate. I do not blame them. Losses are hard to handle and management skills that work really well are hard to obtain. Of course, this last half of 2009 had been the most trying for my CC approach since 1998 (we lost 10% while the market gained 20% - but I am sure things will turn back in favor as we again launch off the bottom of the next medium-term (10%+) correction.
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> G
>
>
> ----- Forwarded Message ----
> From: Gilbert Arevalo <gilbert_arevalo@
> To: ConservativeOptionS
> Sent: Thu, January 28, 2010 6:14:44 AM
> Subject: Re: [ConservativeOption
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> Still haven't figured out how to post this (drag 'n' drop) from a separate FireFox window into "rich text" reply. Works fine when when placing directly into Yahoo! email vs Yahoo! Group. Any ideas?
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> 22-Jan-2009
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> G
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> ____________ _________ _________ __
> From: Gilbert <gilbert_arevalo@ rocketmail. com>
> To: ConservativeOptionS trategies@ yahoogroups. com
> Sent: Wed, January 27, 2010 10:40:20 AM
> Subject: [ConservativeOption Strategies] Re: My 2010 CC Trades
>
>
> This board became very active with the 2009 rally in stocks. Now that we are in a correction, an important part of my long-term growth strategy is to avoid new buys until a new rally is confirmed. As you may have noticed I tend to invest with covered calls using growth stocks. This only works during uptrends, which I can target very well using IBD criteria. It is imperative to cash out once we reach our stop-loss price.
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> Just take a look at how many former leaders are fully tanking into steep price loss. Right now "cash is king" - at least for my approach.
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> G
>
> --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@ ...> wrote:
> >
> > Thursday, January 21, 2010
> >
> > 11:00 am EST
> >
> > Bought (2) NANO Feb 12.5 (NTQBV) call option contracts at $0.50 (ask).
> >
> > Sold 200 shares of NANO (Nanometrics, Inc.) at $11.02 (bid).
> >
> > G
> >
> > --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" gilbert_arevalo@ wrote:
> > >
> > > Wednesday, January 20, 2010
> > >
> > > 9:30 am EST
> > >
> > > Bought (1) STEC Jan 19 (SQRAT) call option contract at $0.70 (ask).
> > >
> > > Sold 100 shares of STEC (STEC, Inc.) at $17.83 (bid).
> > >
> > > G
> > >
> > > --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@
> > > >
> > > > Tuesday, January 19, 2010
> > > >
> > > > 10:31 am EST
> > > >
> > > > Bought 100 shares of STEC (STEC, Inc.) at $19.32 (ask).
> > > >
> > > > Sold (1) STEC Feb 19 (SQRBT) call option contract at $1.45 (bid).
> > > >
> > > > Stop Loss: $17.87
> > > >
> > > > G
> > > >
> > > > --- In ConservativeOptionS trategies@ yahoogroups. com, Gilbert Arevalo <gilbert_arevalo@
> > > > >
> > > > > Model Portfolio (15-Jan-2009) update:
> > > > >
> > > > >
> > > > >
> > > > > G
> > > > >
> > > > >
> > > > >
> > > > >
> > > > > ____________ _________ _________ __
> > > > > From: Gilbert <gilbert_arevalo@
> > > > > To: ConservativeOptionS trategies@ yahoogroups. com
> > > > > Sent: Tue, January 12, 2010 6:40:39 PM
> > > > > Subject: [ConservativeOption Strategies] Re: My 2010 CC Trades
> > > > >
> > > > >
> > > > > Here is an example today of an "unwind":
> > > > >
> > > > > Tuesday, January 12, 2010
> > > > >
> > > > > 1:20 pm EST
> > > > >
> > > > > Bought (1) ASIA Jan 30 (EUJAF) call option contract at $0.25 (ask).
> > > > >
> > > > > Sold 100 shares of ASIA (AsiaInfo Holdings, Inc.) at $28.60 (bid).
> > > > >
> > > > > - Model Portfolio update:
> > > > >
> > > > >
> > > > >
> > > > >
> > > > > G
> > > > >
> > > > > --- In ConservativeOptionS trategies@ yahoogroups. com, Gilbert Arevalo <gilbert_arevalo@ ...> wrote:
> > > > > >
> > > > > > With the start of 2010, my $20,000 Model Portfolio update is as follows:
> > > > > >
> > > > > > http://img710. imageshack. us/img710/ 6339/prompis. jpg
> > > > > >
> > > > > > (test)
> > > > > >
> > > > > >
> > > > > > http://yfrog. com/jqprompisj
> > > > > >
> > > > > > Spreadsheet of trades and graph updates will follow.
> > > > > >
> > > > > > G
> > > > > >
> > > > > >
> > > > > > ____________ _________ _________ __
> > > > > > From: Gilbert Arevalo gilbert_arevalo@ ...
> > > > > > To: ConservativeOptionS trategies@ yahoogroups. com
> > > > > > Sent: Mon, January 11, 2010 11:40:33 AM
> > > > > > Subject: Re: [ConservativeOption Strategies] Re: My 2010 CC Trades
> > > > > >
> > > > > >
> > > > > > Monday, January 11, 2010
> > > > > >
> > > > > > 2:11 pm EST
> > > > > >
> > > > > > Bought 100 shares of ASIA (AsiaInfo Holdings, Inc.) at $29.05 (ask).
> > > > > >
> > > > > > Sold (1) ASIA Jan 30 (EUJAF) call option contract at $0.45 (bid).
> > > > > >
> > > > > > Stop Loss: $28.45
> > > > > >
> > > > > > G
> > > > > >
> > > > > >
> > > > > >
> > > > > >
> > > > > > ____________ _________ _________ __
> > > > > > From: Gilbert <gilbert_arevalo@ rocketmail. com>
> > > > > > To: ConservativeOptionS trategies@ yahoogroups. com
> > > > > > Sent: Thu, January 7, 2010 12:38:28 PM
> > > > > > Subject: [ConservativeOption Strategies] Re: My 2010 CC Trades
> > > > > >
> > > > > >
> > > > > > Thursday, January 7, 2010
> > > > > >
> > > > > > 3:27 pm EST
> > > > > >
> > > > > > Bought 100 shares of VIT (VanceInfo Technologies, Inc.) at $20.21 (ask).
> > > > > >
> > > > > > Sold (1) VIT Jan 20 (VITAD) call option contract at $0.75 (bid).
> > > > > >
> > > > > > G
> > > > > >
> > > > > > --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@ ...> wrote:
> > > > > > >
> > > > > > > Wednesday, January 6, 2010
> > > > > > >
> > > > > > > 9:45 am EST
> > > > > > >
> > > > > > > Bought 200 shares of NANO (Nanometrics, Inc.) at $11.38 (ask).
> > > > > > >
> > > > > > > Sold (1) NANO Jan 12.5 (NTQAV) call option contract at $0.15 (bid).
> > > > > > >
> > > > > > > Stop Loss: $11.23
> > > > > > >
> > > > > > > Sold (1) NANO Feb 12.5 (NTQBV) call option contract at $0.75 (bid).
> > > > > > >
> > > > > > > Stop Loss: $10.63
> > > > > > >
> > > > > > > G
> > > > > > >
> > > > > >
> > > > >
> > > >
> > >
> >
>
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