WealthEsteem.org Psychology of the Deal

Author: dreamspinner

  • 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.

  • Feb BHP calls expire

    Well the February BHP $9.49 Calls I wrote for $0.11 (and bought back for $0.105) expired today worthless! 🙁 See? not every trade works. Oh well next trade.

  • Sell 5 March 9.49 @ 0.22

    Wrote another covered call while driving to an appointment. That was probably poor form because I could have got $0.12 on a 9.73 call and that might have been a safer trade. If I get exercised at 9.49 I’m at breakeven. If the price firms and exercise looks likely I could buy the option back…

  • BHPEL down to 0.075

    OK, it appears that I have wondered from my trading strategy and am trading on emotion. Yes it is good to take insurance — in my case I did that by buying BHPEL back at 0.105 yesterday to close out my position. I didn’t expect BHP to hit $9.49. For the record I don’t think…

  • Buy 5 BHP Feb 9.49 Calls

    I bought them back at 0.105 (0.005 profit) to close out the position. That makes it my worst option trade to date. I’m out $230 in commissions. Something is going on with BHP and I have no idea. Neither does my broker. I could hold on, if BHP hits $9.49 I get exercised and pay…

  • Sell 5450 ALL @ 2.02

    Hey a fast profit is a good profit. I’m out with a 11.60% gain (before commissions) in six days. I wish all my trades were like that.

  • Buy 5450 ALL @ $1.81

    I couldn’t resist. Aristocrat has been suspended twice in a week, but it was trading at above $4.00! It may never see those highs again. But I do expect it to hit $2.00-$2.50. It was $2.30+ before the recent hault. Aristocrat is the second largest manufacturer of gaming machines in the world. The US growth…

  • Write 5 BHP Feb 9.49 Calls

    OK after some needling I’ll blog when I do an option trade as well. Basically all I’ve done since November 2002 is write covered calls on my BHP holding. The deals were 5 December 10.21 BHP Call options Each contract is 1053 shares so 5 = 5265 shares Premium received $0.30 x 5265 bought them…

  • Sell 1831 CSR @ 5.64

    I stretched for cash at the moment so I look a $0.18 (3%) gain on a 17 day holding. A shame because I wanted to hold it long term. Mind you the last dividend was 13c so it’s like I got the dividend anyway.