Monday, April 26, 2010
11:11 am EST
Bought 100 shares of ATHR (Atheros Communications, Inc.) at $42.92 (ask).
Sold (1) ATHR May 43 (ATHR1022E43) call option contract at $1.55 (bid).
Stop Loss: $41.37
Commentary:
Chip makers are a strong leading sector and exposure to this may benefit our Model Portfolio. Earnings came in strong along with volume with gains. As usual keep tight STOPs on your CC positions.
G
From: Gilbert Arevalo <gilbert_arevalo@
To: CoveredCallFund-
Cc: ConservativeOptionS
Sent: Thu, April 22, 2010 7:20:59 AM
Subject: [CoveredCallFund-
Thursday, April 22, 2010
9:47 am EST
Bought (1) NUS May 30 (NUS1022E30) call option contract at $2.60 (ask).
Sold 100 shares of NUS (Nu Skin Enterprises, Inc.) at $31.78 (bid).
Commentary:
For my CC strategy (or any that target well-above average, long-term investment goals), capital preservation is the #1 priority. So if you are going to manage elevated risks within your investment approach, a strict stop-loss methodology is an absolute key.
Gains will come and compounding these over many years will powerfully grow your account - exponentially. But during uncertain periods, for my strategy, heeding caution will pay-off in the end. A steep loss in any given period takes a monstrous return to get back even.
I've seen it happen too many times to count. A manged account will swing for the fences - with temporary success, but then a 50% account loss (needs a 100% gain to make up) blows out the account. Not good for the long-term investment plan.
With the market so sketchy (50 point Nasdaq moves every other day), many positions in recent past months have taken a small loss. We'll close this one to "lock in the gain" - even if it is a small one.
Pay attention to market distribution or a number of days of selling in higher volume. Could indicate a market top, which will do wonders for our particular CC strategy, since it will allow for the market to cycle out of old leaders and move forward with a healthy batch of new ones. Then we can watch gains stack up without so much fret.
G
From: "zmostatabi@ aol.com" <zmostatabi@aol. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com; gilbert_arevalo@ rocketmail. com; ConservativeOptionS trategies@ yahoogroups. com
Sent: Wed, April 21, 2010 8:29:47 PM
Subject: [ConservativeOption Strategies] Re: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (FXI)
It seems that you are making just trades without earning and profit. In such a market that has a great run so far it appears you are giving a lot of commission as the result of your strategy. Consider using bull call spread in the bull market or selling just put are very appropriate for this market unless the market shows its another face. TREND is your absolute friend
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Wed, Apr 21, 2010 1:02 pm
Subject: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (FXI)
Wednesday, April 21, 2010
3:51 pm EST
Bought 100 shares of ASIA (AsiaInfo Holdings, Inc.) at $29.33 (ask).
Sold (1) ASIA May 30 (ASIA1022E30) call option contract at $1.25 (bid).
Stop Loss: $28.08
Commentary:
If market uptrend is considered "intact", we need to gain exposure.
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Mon, April 19, 2010 11:57:20 AM
Subject: [ConservativeOption Strategies] My APR-2010 CC Trades - (FXI)
Monday, April 19, 2010
2:35 pm EST
Bought 100 shares of FXI (iShares FTSE/Xinhua China 25 Index) at $41.80 (ask).
Sold (1) FXI Apr 42 (FXI1022E42) call option contract at $1.28 (bid).
Stop Loss: $40.52
Commentary:
With each (temporary) high volume 4-10% "dip" in the major averages, these last 3 quarters, we've seen buyers in lighter trade move the indexes up into higher highs. Why would this be any different? Our main indicators are Price AND Volume, which will eventually iron out this market back to health - along with a nice jump in our CC gains. . .but in the meantime, we'll *attempt* to track the market.
Heed your stop-loss targets. Losses are hard to make up.
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Fri, April 16, 2010 9:59:25 AM
Subject: Re: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (BCSI)
Friday, April 16, 2010
12:19 pm EST
Bought (1) BCSI May 35 (BCSI1022E35) call option contract at $1.05 (ask).
Sold 100 shares of BCSI (Blue Coat Systems, Inc.) at $33.29 (bid).
Commentary:
BCSI (Blue Coat Systems, Inc.) falls back below its breakout point with today's market distribution. Thus far growth stocks that have broken out, haven't made much progress to the upside. Many are are triggering their stop-points, as the key financial sector (GS charged w/ fraud) takes the S&P 500 decidedly back below key 1200 support in much higher trade.
We didn't have to wait fro BCSI to trigger our stop-loss target, since caution is advised. Of course, today is options expiration day - which typically elevates volume, skewing our read. Regardless, we'll play it safe and take this one off the table now.
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Wed, April 14, 2010 12:27:58 PM
Subject: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (BCSI)
3:02 pm EST
Bought 100 shares of BCSI (Blue Coat Systems, Inc.) at $34.02 (ask).
Sold (1) BCSI May 35 (BCSI1022E35) call option contract at $1.20 (bid).
Stop Loss: $32.88
Commentary:
Some interesting dynamics at work here. First off (source: IBD) volume which has been largely absent for weeks, came back into the market this week with earnings season now under way. That, with the Dow breaking through and holding the (psychological) 11,000 barrier - along with the S&P 500 moving past key 1200 support. . .we are again finding good entries into our CC plays.
We are nimble enough to very quickly gain and scale back exposure. If indeed the market is finding a near-term bullish support for stocks, with leading stocks breaking out in higher volume, this could bode well for our Model Portfolio. Meanwhile, we are positioned with STOPs in the event big money investors have a sudden change of heart. One thing we've seen is the interest in largely beaten-down "value" plays - that ran rampant for the better part of the last year - have lately been shifting to small- and midcap issues.
Leadership will be the key for bulls to further take charge. We'll continue to track institutional investors via volume along with price action. . .
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Wed, April 14, 2010 9:01:46 AM
Subject: [ConservativeOption Strategies] My APR-2010 CC Trades - (NUS)
Wednesday, April 14, 2010
11:08 am EST
Bought 100 shares of SMH (Semiconductor HOLDRs) at $29.88 (ask).
Sold (1) SMH May 30 (SMH1022E30) call option contract at $0.84 (bid).
Stop Loss: $29.04
11:32 am EST
Bought 100 shares of NUS (Nu Skin Enterprises, Inc.) at $30.73 (ask).
Sold (1) NUS May 30 (NUS1022E30) call option contract at $1.80 (bid).
Stop Loss: $28.92
Commentary:
We've done an Etf this year - FXI (iShares FTSE/Xinhua China 25 Index), now we'll try another in SMH (Semiconductor HOLDRs). Bullish price action with confirming volume as well as the Dow and the S&P 500 joining the Nasdaq in breakout territory provided a change in our sentiment - to once again forge ahead and put some cash to work.
NUS: http://www.investor s.com/NewsAndAna lysis/Article. aspx?id=530090
We will however - heed out stop-loss methods. There is no telling how many months the market will rally out of it's recent correction, but as institutions continue to show their hand, we will do our best to closely track and follow the trend. A healthier landscape will eventually unfold and allow for our high-growth engine to rev.
No time like the present to be mentored or to auto-trade my Covered Call Fund. See "Welcome New Member" in files section for more info. Send your request reply to: gilbert.arevalo@ kingdomcapital. com
Join my new Y! Group to get these alerts in "real-time" and all CC Fund management training material w/mentoring & auto-trade, available now.
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Fri, April 9, 2010 5:22:19 PM
Subject: [ConservativeOption Strategies] My APR-2010 CC Trades - (CSIQ)
Week of April 10, 2010
Friday, April 9, 2010
3:31 pm EST
Bought (1) CSIQ Apr 25 (GQA1017D25) call option contract at $0.35 (ask).
Sold 100 shares of CSIQ (Canadian Solar, Inc.) at $24.12 (bid).
Oddly, this ended up cashing out. Not surprising - since when I get STOPped, it almost never turns out that a re-entry works out. But this looked like a good (safe) play. I'll still play the averages.
Question is -- with the indexes seemingly breaking up through another resistance level (albeit moderately in lower volume!) and forging newer highs -- we are pressed to try and get vested next week...even though we keep getting yanked out of our positions. Just going to have to stay light at this juncture with tenuous nimble plays.
You've already seen the norm. Get cashed out (STOPped) in our positions - only to see the indexes go fully into a correction (Jan-Feb '10). Then we out-perform - until they "bottom" (unfortunately, market didn't drop that much [10%], and the Price & Volume "confirmation" - that time - came well after the indexes ran up in light trade) - and we get back in with supposedly profitable CC plays and a nice multi-month rally.
The market didn't correct enough though, and plays aren't (still) working out. We are getting cashed out like each of 6 months before the 2010 modest correction. Maybe next (correction) time?
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Fri, April 9, 2010 10:45:20 AM
Subject: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (TRLG)
The following position(s) were closed to "lock in the gain":
Week of April 10, 2010
Friday, April 9, 2010
1:30 pm EST
Bought (1) TRLG Apr 30 (ZJQ1017D30) call option contract at $0.40 (ask).
Sold 100 shares of TRLG (True Religion Apparel, Inc.) at $29.43 (bid).
Turns out to be a 2.45% return over 3.4 weeks. This time the execution of the close went "as planned" (correct bid/ask, no surprises;).
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Fri, April 9, 2010 10:13:50 AM
Subject: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (CSIQ)
Friday, April 9, 2010
1:00 pm EST
Bought 100 shares of CSIQ (Canadian Solar, Inc.) at $24.57 (ask).
Sold (1) CSIQ Apr 25 (GQA1017D25) call option contract at $0.45 (bid).
Stop Loss: $24.12
My CC Strategy dictates that we at least make an attempt (even if half-hearted) to gain exposure, while this market continues to forge new highs. This looks to be the most (very) reasonable play, even if we just got out of the stock.
I'm headed to the beach with a friend and will let this fund go on auto-pilot [close position(s) at STOP(s)]. Best weekend to all.
Join my new Y! Group to get these alerts in "real-time" and all CC Fund management training material w/mentoring & auto-trade, available now.
See "Welcome New Member" in files section for more info. Send your request reply to: gilbert.arevalo@ kingdomcapital. com
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Fri, April 9, 2010 7:43:30 AM
Subject: [ConservativeOption Strategies] My APR-2010 CC Trades - (CSIQ)
Week of April 10, 2010
Friday, April 9, 2010
9:44 am EST
Bought (1) CSIQ Apr 26 (GQA1017D26) call option contract at $0.30 (ask).
Sold 100 shares of CSIQ (Canadian Solar, Inc.) at $24.93 (bid).
I was confronted with the choice to ADD 100 shares to this between $24.60 and $24.90 - which would be a good entry given the technical support. With my particular strain of CC strategy, you will learn that doubling-down hardly ever works (but probably did well mostly this last 9 months).
Also you will learn how to preserve capital (even if slightly eroding), which is what my routine shows you. Besides, I did not want to be nearly 25% vested in one position - even if it would bounce to a minor near-term gain! Also, when my positions immediately go south - enuf to get STOPped - is most always a bad omen (prob not the case here). But my routine (although not profitable of late) is simple to manage and learn, so let's stick with it!
Almost always a stock - during a "confirmed" uptrend (in a *healthy* market) - that goes down, does so for a reason - but probably not the case, again here. Also, almost always when I get STOPped out of 1, 2 & 3 positions (again during a confirmed uptrend in a healthy market) - it is an omen that the market is going to roll over. This has repeatedly NOT been the case these last 9 months or so. I just have to relegate myself to the fact that I will not make much in an unhealthy (price & volume indicators are backwards) market period - even if index price rises 50%!
Over time, you will see that compounding the higher annual average that works most of the time will in a few years relegate this large market jump (most likely followed with a decent correction and subsequent vault in gains with our funds) as unrecognizable on a 3-5 year chart.
Just my experience.. .eventually this market will turn over good soil.
I still see no reason to "fix", what ain't broke.
G
Note: "almost always" is over 12 years as well as IBD research over the life of the market: repeats itself, so bank on it.
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Thu, April 8, 2010 10:26:41 AM
Subject: [ConservativeOption Strategies] Re: My APR-2010 CC Trades - (CSIQ)
Thursday, April 8, 2010
12:48 pm EST
Bought 100 shares of CSIQ (Canadian Solar, Inc.) at $25.48 (ask).
Sold (1) CSIQ Apr 26 (GQA1017D26) call option contract at $0.55 (bid).
Stop Loss: $24.93
Indexes climb out of hole to turn positive. Nasdaq volume lightens, however. Watch today's close to see if overhead resistance proves problematic, again. We make an OTM (tenuous) asset allocation.
G
Join my new Y! Group to get these alerts in "real-time" and all CC Fund management training material w/mentoring & auto-trade, available now.
See "Welcome New Member" in files section for more info. Send your request reply to: gilbert.arevalo@ kingdomcapital. com
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Thu, April 8, 2010 9:00:48 AM
Subject: [ConservativeOption Strategies] Re: My APR-2010 CC Trades - (FXI)
Week of April 10, 2010
Thursday, April 8, 2010
9:54 am EST
Bought (1) FXI Apr 43 (FXI1017D43) call option contract at $0.83 (ask).
Sold 100 shares of FXI (iShares FTSE/Xinhua China 25 Index) at $43.25 (bid).
Take note of volume coming markedly back into yesterday's market - resolving to the downside. It gave another distribution day (indeniably institutional selling) across all of the major indexes, as the stack continues. With the market having gotten *healthier* with time, expectations from our signals increases - lending further credence toward near-term caution. Hence another position's gains taken off the table. Do not let gains cycle into losses.
We are still in an "confirmed" uptrend, so our risk measures dictate we may enter another position, although I do so with some trepidation or angst. In any event, sticking to our long-term successful rules remain first and foremost for the disciplined investor/trader. Reason: Our long-term average gains will be perpetuated as will contained risks as measured by (max) DD. Do not let the near-term cloud focus.
G
Join http://finance. groups.yahoo. com/group/ CoveredCallFund- Mentoring/ if you haven't, yet.
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Wed, April 7, 2010 8:41:29 AM
Subject: [ConservativeOption Strategies] Re: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (MELI)
Week of April 10, 2010
11:18 am EST
Bought (1) MELI Apr 50 (QMB1017D50) call option contract at $0.70 (ask).
Sold 100 shares of MELI (Mercadolibre, Inc.) at $48.36 (bid).
Another of our tenuous entries gets STOPPed. I am looking at CSIQ, since recently (past 9 mos. - Jan-Feb muted correction, notwithstanding) getting cashed out. . .has repeatedly proven to be a buying opportunity!
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Wed, April 7, 2010 8:17:00 AM
Subject: Re: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (NUS)
Week of April 10, 2010
Tuesday, April 7, 2010
9:40 am EST
Bought (1) NUS Apr 30 (NUS1017D30) call option contract at $0.30 (ask).
Sold 100 shares of NUS (Nu Skin Enterprises, Inc.) at $28.79 (bid).
What looks to be like more distribution stacking up for the indexes, has once-again reduced our exposure. Yet, I am looking to move into another CC position (with yesterday's VLTR close to "lock in the gain"). I'll "wait-and-see" how this day pans out.
IBD Tip: Distribution days can signal market top.
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Mon, April 5, 2010 11:37:33 AM
Subject: Re: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (VLTR)
Week of April 10, 2010
Monday, April 5, 2010
1:10 pm EST
Bought (1) VLTR Apr 25 (QYU1017D25) call option contract at $2.85 (ask).
Sold 100 shares of VLTR (Volterra Semiconductor Corporation) at $27.30 (bid).
This is an example of how a CC position that has gone ITM can be closed early with a profit. We may do this in an uncertain market to "lock in the gain". In this case a 2.4 week holding yielded 2.33%. Had we held another 1.8 weeks, a total 4.54% gain was possible.
This market order didn't execute quite as I intended. Yes, the bid/ask spread sucked - but still it is entirely probable that I could have sold the stock $0.25 higher with the same option buy price. I just miffed the execution and it sacrificed 1.0% of my intended gain. With my strategy goals/results - usually just say "Oh, well", but lately all gains seem necessary!
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Thu, April 1, 2010 10:30:52 AM
Subject: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (MELI)
Notice that premium to FXI & MELI stock cost isn't *huge*, but an ETF - I rarely use - is a safer (more diverse) play and technical action in these is very strong, which takes precedent in today's market. Also keep in mind that if we tie up an extra few k in capital, we aren't anywhere near allocating half (the most I use) available margin.
Additionally, our exposure is as scheduled as our CENX close proved (thus far) for this part of the portfolio to stay allocated. In other words we've just replaced it with FXI and about another k to get the similar premium. Also, keep tight STOPs as we have an automatic exit of both call option and stock, at this time, for both of these positions
Thursday, April 1, 2010
1:08 pm EST
Bought 100 shares of MELI (Mercadolibre, Inc.) at $49.46 (ask).
Sold (1) MELI Apr 50 (QMB1017D50) call option contract at $1.10 (bid).
Stop Loss: $48.36
My JAN-2010 to MAR-2010 CC Trades -
http://finance. groups.yahoo. com/group/ ConservativeOpti onStrategies/ message/5726
Also see "KCM 2010 Trading History.doc" in the CoveredCallFund- Mentoring Group files section.
Join my new Y! Group to get these alerts in "real-time" and all CC Fund management training material w/mentoring & auto-trade, available now.
G
From: Gilbert Arevalo <gilbert_arevalo@ rocketmail. com>
To: CoveredCallFund- Mentoring@ yahoogroups. com
Cc: ConservativeOptionS trategies@ yahoogroups. com
Sent: Thu, April 1, 2010 6:59:56 AM
Subject: [CoveredCallFund- Mentoring] My APR-2010 CC Trades - (FXI)
Thursday, April 1, 2010
9:30 am EST
Bought 100 shares of FXI (iShares FTSE/Xinhua China 25 Index) at $42.91 (ask).
Sold (1) FXI Apr 43 (FXI1017D43) call option contract at $0.79 (bid).
Stop Loss: $42.12
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
My JAN-2010 to MAR-2010 CC Trades -
http://finance. groups.yahoo. com/group/ ConservativeOpti onStrategies/ message/5726
Also see "KCM 2010 Trading History.doc" in the CoveredCallFund- Mentoring Group files section.
Join my new Y! Group to get these alerts in "real-time" and all CC Fund management training material w/ mentoring & auto-trade, available now.
G
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