To: ConservativeOptionS
From: Gilbert <gilbert_arevalo@
Date: Mon Mar 22, 2010 10:24 am
Subject: Re: My 2010 CC Trades
Thanks for the question - high risk(s) not managed properly WILL bite you in the butt. Thus far the Group has seen me stop-out as the market corrected. There was no guarantee things wouldn't drop further - but we got out nevertheless. Now we are phasing back in, since you never know how much or long the market will rally.
All I can say is what I know has worked for me since 1998 - through BOTH bear markets and unheard of index retracementS. I am now attempting to show to the Group (with actual trades) how this and other considerations are entirely appropriate.
Like I said, in the past 2 yrs. I have broken up allocations to 5-7.5% per position, so with my Model Portfolio that would be $10-$15/100 share positions. With high-yielding CC positions, come increased "beta" or volatility. So with my stop-loss target set at "breakeven" (stock purchase price minus option sell price), managing many positions can exhaust you (this strategy was designed for the working person).
I haven't yet had an undertaking by a volunteer, but I'd like to see if this system can even be traded on the open the next day. To verify, just take all past trades and enter them into my excel spreadsheet. The annual returns should be almost the same.
I've also mentioned before that I even designed into the strategy the opportunity to have (1) biotech holding in the portfolio. Yes, the gains are great, but (despite strict screening) still usually ONCE a year - I wake up to a 25-50% drop at the open. Mathematically/
This just turns out to more of a pain than anything so I now avoid - yes, right when this sector makes it's best moves in the decade! All things aside, with near-sterling technicals and fundamental selections - including stock price >$10, 400,000+ shrs average trade volume, stock accumulation/
I have exhaustive charting and trade-buy-trade data that record my prior year results that can be presented to show what is typical for this CC approach. Again drjoe, just my experience.
G
From: joe & leigh <gass20@aol.com>
To: ConservativeOptionS
Sent: Mon, March 22, 2010 8:55:45 AM
Subject: [ConservativeOption
G,,,just curious ...would you consider 15-20% of capital per position conservative? we all have our own risk.......if in an etf, large diversified i can see but not in individual stocks....drjoe
--- In ConservativeOptionS trategies@ yahoogroups. com, Gilbert Arevalo <gilbert_arevalo@ ...> wrote:
>
> Hi Fred,
>
> 15-20% usually works just fine. In the last two years I have gone less to diversify more with all the volatility. But with the trend as your friend, 3 of 4 growth stocks (when selected well) should participate. If one does not, I'll take a small loss and get into another stocks' juicy premium.
>
> G
>
>
>
>
> ____________ _________ _________ __
> From: fred barbour <barbour2p@. ..>
> To: ConservativeOptionS trategies@ yahoogroups. com
> Sent: Thu, March 18, 2010 8:50:29 PM
> Subject: Re: [ConservativeOption Strategies] Re: My 2010 CC Trades
>
>
> Gilbert,
>
> Curious as to what % of total trading cash you commit to each new position?
>
> Fred
>
> --- On Thu, 3/18/10, Gilbert <gilbert_arevalo@ rocketmail. com> wrote:
>
>
> >From: Gilbert <gilbert_arevalo@ rocketmail. com>
> >Subject: [ConservativeOption Strategies] Re: My 2010 CC Trades
> >To: ConservativeOptionS trategies@ yahoogroups. com
> >Date: Thursday, March 18, 2010, 11:31 AM
> >
> >
> >
> >As the market continues to prove it's mettle to rally (and with NUS hanging in there) - along with BCSI slated to be exercised after the close tomorrow, we'll increase our CC portfolio exposure.
> >
> >Thursday, March 18, 2010
> >
> >12:15 pm EST
> >
> >Bought 100 shares of VLTR (Volterra Semiconductor Corporation) at $24.87 (ask).
> >
> >Sold (1) VLTR Apr 25 (QYU1017D25) call option contract at $1.00 (bid).
> >
> >Stop Loss: $23.87
> >
> >G
> >
> >--- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@ ...> wrote:
> >>
> >> Monday, March 15, 2010
> >> 12:19 pm EST
> >>
> >> Bought 100 shares of TRLG (True Religion Apparel, Inc.) at $29.41 (ask).
> >>
> >> Sold (1) TRLG Apr 30 (ZJQ1017D30) call
> > option contract at $1.10 (bid).
> >>
> >> Stop Loss: $28.41
> >>
> >> G
> >>
> >> --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@ > wrote:
> >> >
> >> > "Blue Coat Systems (BCSI) roared out of a cup-without- handle pattern. Volume was triple its usual pace. It's now less than 3% past its 31.15 buy point." IBD states in the recent TBP (The Big Picture).
> >> >
> >> > We entered BCSI last Tuesday and yesterday's NUS is also (now) doing ok. Of course, the high-octane picks are entirely dependent on the overall market trend - so we'll keep out strict stop rules.
> >> >
> >> > My Covered Call Candidates watchlist (see posting shortly) has a couple of interesting
> > biotech picks (which I avoid). But it has been a top sector and AMLN and ITMN stand out.
> >> >
> >> > Apparently I can buy ITMN at 23.3 and sell the MAR 17.5 call for $9. That'll give a "break-even" of 14.3 and a 13.73% return for a 1.8 week holding.
> >> >
> >> > Very enticing - but I 'll avoid.
> >> >
> >> > G
> >> >
> >> > --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@ > wrote:
> >> > >
> >> > > Monday, March 8, 2010
> >> > >
> >> > > 11:03 am EST
> >> > >
> >> > > Bought 100 shares of NUS (Nu Skin Enterprises, Inc.) at $29.38 (ask).
> >> > >
> >> > > Sold (1) NUS Apr 30 (NUS1017D30) call
> > option contract at $1.10 (bid).
> >> > >
> >> > > Stop Loss: $28.28
> >> > >
> >> > > G
> >> > >
> >> > > --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@ > wrote:
> >> > > >
> >> > > > Tuesday, March 2, 2010
> >> > > >
> >> > > > 10:35 am EST
> >> > > >
> >> > > > Bought 100 shares of BCSI (Blue Coat Systems, Inc.) at $29.94 (ask).
> >> > > >
> >> > > > Sold (1) BCSI Mar 30 (IYU1020C30) call option contract at $0.85 (bid).
> >> > > >
> >> > > > Stop Loss: $29.09
> >> > > >
> >> > > > G
> >> > > >
> >
> >> > > > --- In ConservativeOptionS trategies@ yahoogroups. com, "Gilbert" <gilbert_arevalo@ > wrote:
> >> > > > >
> >> > > > > 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.
> >> > > > >
> >> > > > > 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.
> >> > > > >
> >> > > > > [The image
> >> > > > > "http://img215. imageshack. us/img215/ 2604/promp012210 .jpg" cannot
> >> > > > > be displayed, because it contains errors.]
> >> > > > >
> >> > > > > 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@ > wrote:
> >> > > > > > > >
> >> >
> > > > > > > > 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@ > wrote:
> >> > > > > > > > >
> >> > > > > > > > > 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.
> >> > > > > > > > > >
> >> > > > > > > > > > (test)
> >> > > > > > > > > >
> >> > > > > > > > > >
> >> > > > > > > > > > http://yfrog.
> >> > > > > > > > > >
> >> > > > > > > > > > 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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