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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 Thursday 1/13/11. Calls: FDX, FISV, MITI, KOF, FXY, HME, FXA, YHOO, ICN, UTX, NFX, TRE, BBL, EPV, KLAC, EPP, HMC, SLX, SSL, REMX, RSX, DE, TBT. PUTS: BBVA, UUP, EPV, YCS. 0 comments
    Jan 13, 2011 6:33 AM
    OPTIONS CORNER
    Short-Term Trading in Options.

      Thursday 13 January 2011

    Our Options Scoreboard (below) includes the options totals (up 13.32% since 12/20/10) and also how each of our trading systems is doing.

    We're looking to get out of our Jan options that expire in a little over a week.  To do this we employ our short-term momentum indicators to try to pinpoint a short-term trading top.


    OPTIONS TRADING SCORECARD:
    CGTS OPTION  PORTFOLIO (Since 12/20/10) Active
    % Gain 1/12/11 Profit Trades
    13.32% Option Trades $237,082 178
    32.07% M2F 14% Trade $86,597 27
    27.74% M4 ACCUM 00 14 $30,518 11
    -1.52% M4 Accum 00 -$3,347 22
    9.28% M4 Blank 2 $14,855 16
    56.12% M4 Blank $33,669 6
    33.93% CHART METER ASP $3,393 1
    9.17% M5 3 (Combo) Wait $6,419 7
    0.97% M5 3 Chart Trade $2,128 22
    25.06% M5 3 Avg ASP Diff Sum $35,080 14
    2.40% M5 3 Test Combo $8,155 34
    10.90% M5 3 ASP LT 2a $19,614 18


    TODAY'S TRADES:

    WED CGTS NEW TRADES      
    12-Jan        
    ISSUE TRADING CLOSE SIGNAL  
      SYSTEM      
    CLOSED POSITIONS      
    M2F ALT 14% Trading System      
    Bought MWW Jan 24 calls @ .9 on 12/29/10.  Sold 1/12/11 @ .85.  Loss of 5.68%
    M4 Accum 00 Trading System      
    Bought SNE Feb 35 calls @ 1.75 on 12/27/10.  Sold 1/12/11 @ 2.15.  Gain of 22.7%.
    M4 Blank Trading System      
    Bought VPHM JAN 17.5 CALLS @ 1.1 on 1/3/11.  Sold 1/12/11 @ 1.15.  Gain of 14.85%
    M4 Blank 2 Trading System      
    Bought VPHM JAN 17.5 calls @ 1.1 on 12/29/10.  Sold 1/12/11 @ 1.15.  Gain of 4.4%.
             
    NEW OPEN POSITIONS      
    FDX M5 3 ASP LT 2a 95 Long  
    FDX FEB 90 calls 6.15 Long  
    FISV M5 3 ASP LT 2a 60.82 Long  
    FISV MAR 55 calls 5.4 Long  
    MITI M2F 14% Trade 7.94 Long  
    MITI FEB 7.5 calls 0.75 Long  
    KOF M4 ACCUM 00 14 82.92 Long  
    KOF Feb 80 calls 3.3 Long  
    FXY M4 ACCUM 00 14 119.14 Long  
    FXY FEB 119 calls 1.61 Long  
    HME M4 ACCUM 00 14 53.41 Long  
    HME Feb 50 calls 4.2 Long  
    YCS M4 ACCUM 00 14 16.33 Short  
    YCS FEB 17 puts 0.95 Short  
    FXY M4 Accum 00 119.14 Long  
    FXY FEB 119 calls 1.61 Long  
    FXA M4 Accum 00 99.66 Long  
    FXA Feb 100 calls 1.15 Long  
    YHOO M5 3 Chart Trade 16.65 Long  
    YHOO Feb 15 calls 1.78 Long  
    ICN M5 3 Chart Trade 26.45 Long  
    ICN APR 23.71 calls 2.35 Long  
    UTX M5 3 Chart Trade 79.43 Long  
    UTX Feb 75 calls 5.25 Long  
    NFX M5 3 Chart Trade 72.73 Long  
    NFX Feb 70 calls 5 Long  
    TRE M5 3 Chart Trade 7.1 Long  
    TRE FEB 6 calls @ 1.25 1.25 Long  
    BBL M5 3 Chart Trade 80.23 Long  
    BBL Feb 80 calls * 3.1 Long  
    EPV M5 3 Chart Trade 13.93 Short  
    EPV Feb 15 puts 1.3 Short  
    KLAC M5 3 Avg ASP Diff Sum 38.99 Long  
    KLAC FEB 37 calls 2.65 Long  
    EPP M5 3 Avg ASP Diff Sum 46.6 Long  
    EPP Feb 45 calls 2.55 Long  
    UUP M5 3 Avg ASP Diff Sum 23.0375 Short  
    UUP FEB 25 puts 1.95 Short  
    HMC M5 3 Test Combo 40.11 Long  
    HMC FEB 40 calls 1 Long  
    SLX M5 3 Test Combo 75.22 Long  
    SLX FEB 72 calls 3.02 Long  
    SSL M5 3 Test Combo 51.51 Long  
    SSL Feb 50 calls 2.25 Long  
    REMX M5 3 Test Combo 24.23 Long  
    REMX Feb 22.5 calls 2.35 Long  
    RSX M5 3 Test Combo 40.03 Long  
    RSX Feb 40 calls 1.35 Long  
    DE M5 3 Test Combo 87.45 Long  
    DE FEB 80 calls 8.15 Long  
    UUP M5 3 Test Combo 23.0375 Short  
    UUP FEB 25 puts 1.95 Short  
    BBVA M5 3 (Combo) Wait 10.3 Short  
    BBVA FEB 11 puts 1.3 Short  
    TBT CHART METER ASP 38.89 Long  
    TBT Feb 35 calls 4.1 Long  

    ___________________________________________________


    CHARTS

    Favorite charts today.



    Have to love BBL short-term (Feb call options).



    Intermediate-term, FDX looks solid (Feb or March calls).



    FISV also looks very good in the intermediate term (Feb-March calls).



    PALLADIUM (NYSEMKT:ETF) looks very good here (but does not trade options).


    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







    ___________________________________________________

    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






    ___________________________________________________

    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





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