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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 ©
  • CGTS OPTIONS CORNER FOR FRIDAY 7 JANUARY 2011: BUY CALLS ON ARUN, PDLI, POL, SAH, TXN, MWW, HLF, ECH, FDX, EDU, ARNA, EWC, IRE, JJC, DBB, BIIB, ICN, RRGB, AMAT, AMTD, SNDK, EWG; BUY PUTS ON CLWR. 0 comments
    Jan 7, 2011 7:26 AM | about stocks: ARUN, PDLI, POL, SAH, TXN, MWW, HLF, S, ECH, FDX, ARNA, EDU, EWC, IRE, JJC, DBB, BIIB, ICN, RRGB, AMAT, EWG
    OPTIONS CORNER
    Short-Term Trading in Options.

    Friday Jan 7 2011

    It looks like stocks are trying to pull back a bit.  Look to take profits on options that expire in January.  We think there will be another move up -- but caution is ALWAYS good when trading options.

    Options Trading Scorecard (since 12/20/10):

    CGTS OPTIONS  PORTFOLIO (Since 12/20/10) Active
    % Gain 1/6/11   Profit Trades
    11.76% Options   $111,767 95


    SALES TODAY:

    M2F ALT 14% Trading System: NVDA JAN 15 calls bought 12/29/10 @ .53.  Sold today @ 4.3.  Gain of 711.32%.

    M5 3 AVG ASP DIFF Trading System.  PCLN FEB 390 calls bought 1/3/11 @ 32.5.  Sold today at 57.32.  Gain of 76.37%.

    M5 3 CHART Trading System.  POL FEB 12.5 calls bought @ 1.6 on 1/3/11.  Sold on 1/6/11 @ 1.5.  Loss of 6.25%.  Trading Signal gave a sell signal.

    PURCHASES TODAY:

    THURS CGTS NEW TRADES        
    6-Jan          
    ISSUE TRADING CLOSE SIGNAL    
      SYSTEM        
               
    ARUN T5 Turn (M4 Accum) 23.75 Long    
    ARUN FEB 23 calls   2.12 Long    
    PDLI T5 Turn (M4 Accum) 6.2 Long    
    PDLI FEB 5.5 calls   0.75 Long    
    POL T5 Turn (M4 Accum) 13.35 Long    
    POL FEB 12.5 calls   1.5 Long    
    SAH T5 Turn (M4 Accum) 13.26 Long    
    SAH FEB 12.5 calls   1.5 Long    
    TXN M5 3 ASP LT 2a 33.25 Long    
    TXN FEB 30 calls   3.4 Long    
    MWW M5 3 ASP LT 2a 25.27 Long    
    MWW FEB 25 calls   1.35 Long    
    HLF M5 3 ASP LT 2a 69.2 Long    
    HLF FEB 65 calls   5.1 Long    
    CLWR M2F 14% Trade 5.77 Short    
    CLWR FEB 6 PUTS   0.85 Short    
    ECH M4 Accum 00 75.38 Long    
    ECH FEB 75 calls   2.05 Long    
    FDX M4 Accum 00 93.1 Long    
    FDX FEB 90 calls   5.05 Long    
    ARNA M4 Accum 00 2.11 Long    
    ARNA Feb 2 calls   0.32 Long    
    EDU M4 ACCUM 00 14 105.23 Long    
    EDU Feb 105 calls   5.5 Long    
    ARNA M4 ACCUM 00 14 2.11 Long    
    ARNA Feb 2 calls   0.32 Long    
    EWC M4 Blank 2 30.83 Long    
    EWC FEB 30 calls   1.35 Long    
    IRE M4 Blank 2 2.48 Long    
    IRE FEB 2.5 calls   0.25 Long    
    JJC M4 Blank 2 57.52 Long    
    JJC FEB 55 calls   4.26 Long    
    DBB M4 Blank 2 24.3 Long    
    DBB Feb 23 calls   1.75 Long    
    TXN M5 3 Chart Trade 33.25 Long    
    TXN FEB 30 calls   3.4 Long    
    HLF M5 3 Chart Trade 69.2 Long    
    HLF FEB 65 calls   5.1 Long    
    BIIB M5 3 Chart Trade 67.26 Long    
    BIIB FEB 65 calls   3.79 Long    
    EDU M5 3 Chart Trade 105.23 Long    
    EDU Feb 105 calls   5.5 Long    
    ICN M5 3 Avg ASP Diff Sum 26.18 Long    
    ICN JAN 23.71 calls   2.85 Long    
    TXN M5 3 Test Combo 33.25 Long    
    TXN FEB 30 calls   3.4 Long    
    RRGB M5 3 Test Combo 21.78 Long    
    RRGB FEB 20 calls   2.05 Long    
    AMAT M5 3 Test Combo 13.89 Long    
    AMAT FEB 13 calls   1.12 Long    
    AMTD M5 3 Test Combo 19.82 Long    
    AMTD Feb 16 calls   2 Long    
    SNDK M5 3 Test Combo 52.73 Long    
    SNDK Feb 50 calls   4.9 Long    
    EWG M5 3 Test Combo 23.56 Long    
    EWG Feb 22 calls   2.15 Long    


    ___________________________________________________

    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.  Typically we work with the last close, if it falls between bid and offer.  If it does not, then we average the bid/offer.

    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:
    home.mindspring.com/~mclark7/CGTS09.htm

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





    Stocks: ARUN, PDLI, POL, SAH, TXN, MWW, HLF, S, ECH, FDX, ARNA, EDU, EWC, IRE, JJC, DBB, BIIB, ICN, RRGB, AMAT, EWG
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