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Michael Clark
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Michael J. Clark was born and raised in Sinclair, Wyoming. He is a poet, novelist, artist, historian, and market analyst. His fine arts portfolio can be found at the following address: http://www.hoalantrangallery.com/MJC2.htm His writing portfolio can be found at:... More
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Clark's Gate Timing System ©
    Dec 29, 2010 6:18 AM | about stocks: GG, NEM, AKG, BIIB, ELY, SLW, FDX, GDXJ, CA, BMY, THC, HSIC
    Short-Term Trading in Options.

    Tuesday 28 December 2010

    Our (continuing) love-affair with precious metals has given our options portfolio a nice boost -- up almost 14% in a bit over a week.  We are adding to our gold (especially) and silver positions today.  See below

    Options Trading Scorecard:

      DAILY PORTFOLIO     Active
    % Gain since 12/20/10   Profit Trades
    13.77% Options ST Test $30,304 22

    1.  M5 3 ASP LT 2a Trading System:

    This system is an intermediate-term trading system, so we are looking at February expirations for these three trades.

    Buy GG (GOLDCORP) Feb 45 calls @ 2.3.

    Buy NEM (Newmont Mining) Feb 60 calls @ 3.55.

    Buy KGN (Kegan Gold Compan) Feb 7.5 calls @ 1.6.

    Other M5 3 ASP LT 2a Trading System signals for today: none.

    2.  M2F ALT 14 % Trade Trading System

    Buy BIIB (Biogen Idec) Jan 65 calls @ 2.8.

    Buy ELY (Callahan Golf) Jan 8 calls @ .45.

    Other M2F ALT 14% Trading Systems  signals for today: long, CYTX; long, long ECH, long EZCH, long SBUX, long XES.

    3.  M4 Accum 00 Trading System

    Buy SLW (Silver Wheaton) Jan 38 calls @ 1.95.

    Other M4 Accum 00 Trading System signals for today: long, TXN.

    4.  M5 3 Test Combo Trading System

    Buy FDX (Fedex) Jan 90 calls @ 4.1.

    Buy GDXJ (Junion Gold Miners ETF) Jan 40 calls @ 1.4.

    Other M5 3 Test Combo Trading System signals for today: long IMAX, long NILE, long CBPO, long CEW, long KUS, long CAB, long EWC, long HOV, long VCI; short CSCO.

    5.  M4 Reverse 3 Trading System.

    Buy CA (Computer Associates) Jan 22.5 calls @ 2.5.

    Buy AMLN (Amlyn Pharm) Feb 15 calls @ 1.18.

    Buy THC (Tenet Healthcare) FEB 6 calls @ .84.

    Buy HSIC (Henry Schein) Jan 60 calls @ 2.73.

     Buy ACN (Accenture PLC) Jan 45 calls @ 3.3.

    Other M4 Reverse 3 Trading System signals for today: long NBIX, LONG F (Ford Motor), long SLX, long ICON, long POL, long CDNS, long PEP; short VIX, short HLCS,PK, short RXD.


    A Disclaimer of sorts:

    I will update these positions regularly, so we can all see how we are doing with our short-term speculating.

    I am bullish on gold long-term (until Bernanke is fired, and more generally until about 2019, the end of the deflation cycle) -- and I'm relatively bullish on stocks until QE is abandoned.  QE does many things, one of which is to try to make sure that stocks and bonds don't decline.  The Fed, quite likely, has guaranteed to bankers the advance of stock prices.  As long as the Fed is willing and is allowed to backstop stock prices, short positions are very dangerous, except in isolated cases.  Bond vigilantes are showing Mr. Benanke that his designs may not be able to proceed without resistance however.  Rising rates are a slap in the face of American power; the slap is welcomed by those of us who think debt is the problem that needs to be addressed, destroyed, rather than expanded and extended.

    Trading options is highly speculative and can be dangerous.  Pricing of options is never very clear; buying options is almost always less prefereable than selling options, in terms of likely profits.  But buying options gives an investor a HUGE BANG FOR THE BUCK.  Getting accurate price data on options (especially those thinly-traded) is also often a problem, with which we'll have to work.

    If one knows what direction a stock is moving, short-term options can be profitable.  The problem with options, of course, is that they, like ourselves, decay with time.

    The cheaper options expire more quickly (one can always buy long-term options is one wishes to speculate on long-term stock or market moves).  I like short-term expirations, cheap options, and getting in and out (with profits).

    I have many short-term trading systems.  I will use several in this Options Corner.  The first I start with I call "M5 3 Chart Trade" which really relies on the M5 3 Momentum Indicator to trigger the trade, always in the same direction of the major trends.

    Successful trading!  We know the game is fixed; but let's ride on the back of the dragon for as long as we can.

    More information on the CGTS systems can be found at:

    Clark's Gate Timing System
    Hanoi, Vietnam
    84 4 221 92210

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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