I just realised I had a copy of Options as a Strategic Investment (2nd Edition) on my bookshelf. Doh! I first read it years ago when Australian options markets were not as liquid for small investors. I have some light bedtime reading coming up. That link is for a Google search in case you’ve never …
Monthly Archives: March 2003
Dangerous forecasts
I caught myself making a dangerous forecast this morning. CNBC’s anchors were speculating on the length of the war in Iraq. I expect a short war and my attitude was reflecting it. “No way this thing will drag on for months”, thought I. How many times do I remind myself to deal what what is …
Sell 5 BHP Apr 9.73 Calls @ 0.20
I can’t add! In the last article on option trading, I said my net premiums on BHP were $0.495. The numbers given add up to $0.595! Actually now that I’ve checked my trading statements the after commission premiums are $0.4593. I pulled out my written trading strategy ;). It told me to write 5 BHP …
Applying for a loan
Last week I was talking to an couple with a nice portfolio of investment properties and direct shares. They had just financed their latest acquisition after a mountain of hassles. For smart people they were stuck in an eighties view of finance. They called their bank and got rejected. They then called a friend’s finance …
Buy 5 BHP March 9.49 Calls @ 0.05
That represents $0.17 x 5265 to close out the position. As these are covered calls I own 5625 BHP against which I write these calls. Since doing this BHP has gone from $9.95 to close today at $8.93 so it’s fallen $1.02 (my average buy price was below $9.95). In the same time I’ve earned …
CSR update
I was reviewing my watchlist and realised CSR has been trading 6.40-6.60 recently. I sold out in November at 5.56. Trading doesn’t always win.