Hi Gilbert,
I am just learning a little about options so please bear with me.
Based on the NUS trade here is what I see
You got NUS at 29.70 ( 30-0.30) and then you sold it at 28.79
So effectively you lost 0.91 + 19.95 in commission or more based on the broker.
The same thing happened with your other trade of MELI.
Can you explain the thesis behind this trade. Am i missing something.
thanks
Amit
--- In ConservativeOptionS
>
> The following stock(s) triggered our "Stop-Loss" target(s):
>
> 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).
>
> 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@
> To: CoveredCallFund-
> Cc: ConservativeOptionS
> Sent: Wed, April 7, 2010 8:17:00 AM
> Subject: Re: [CoveredCallFund-
>
>
> The following stock(s) triggered our "Stop-Loss" target(s):
>
> 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)
>
>
> Strength today in the semiconductor sector allowed for the following position was closed to "lock in the gain":
>
> 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)
>
>
> In keeping with today's (thus far) bullish price and volume action [Nasdaq has - however - reversed significantly from highs, but along with the market is up in much high volume (than yesterday's decline)].
>
> 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)
>
>
> Week of April 3, 2010
>
> 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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