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I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that... More
My company:
iBBQ, Inc.
  • Portfolio Update 0 comments
    Jan 23, 2013 12:39 AM | about stocks: AAPL

    The last few days have been especially busy running my start-up so I have not had a chance to update my Options2Wealth portfolio...until now. So here it is:

    As stated in my January 16th post titled, Apple's Chief Executive Officer Is Now Also Leaker-In-Chief (UPDATE), I had planned to use up the remaining cash balance of $800+ to purchase Apple CALLS...As I had explained, my decision to buy is based purely on my earlier speculation (tinyurl.com/dyxhall) that Apple will announce at its first quarter earnings release, an agreement to sell iPhones to China's largest mobil phone company, China Mobile and should my speculation be correct, Apple's stock should end its 4+ month correction and start a new uptrend that should take its price towards its recent all-time high of $705+.

    I figure that by placing a small bet, albeit a very risky bet with short-term options (really a crapshoot), on Apple for their upcoming first quarter's earnings announcement, I basically give myself a chance, really a ticket of sorts, that, should it pay off, will allow me to ride along for the $200+ move up from the stock's current levels. And should my bet go south, I will have gambled away a relatively small amount for hoping to secure that opportunity...I can live with that risk reward tradeoff...

    So on Wednesday, about 30 minutes after my blog post, I bought Apple's way out of the money, February 2013, CALL options, $655 strike price @ 62¢

    Starting Cash in Options2Wealth account: $815.00

    12 contracts Apple February 2013, $655 CALL options @ 62¢:

    1200 x $0.62 = $744.00 + $18.99 = $762.99

    Ending Cash Balance: $52.00 ($815.00 - $762.99, rounded off)

    With this purchase, the Options2Wealth account consists of:

    Apple (NASDAQ:AAPL): 12 contracts, February 2013, $655 strike price CALLS

    Sprint (NYSE:S): 163 Contracts May 18, 2013 CALLS, $6.00 Strike Price

    SunPower (NASDAQ:SPWR): 80 contracts March 16, 2013 CALLS, $6.00 Strike Price

    MEMC Electronic Materials (WFR): 61 contracts April 20, 2013 CALLS, $3.50 Strike Price

    This Friday and through the weekend, I'll be in San Frnacisco on company business (my start-up), however, I will try to update the current value of the portfolio and will also share an Excel spreadsheet that, going forward, will keep track of the Options2Wealth portfolio...

    I will of course keep my fingers crossed tonight for tomorrow's big Apple announcement after the markets close...wish me luck...



    P.S. Last week, at the time I made the Apple CALLS purchase, I overlooked taking a screenshot of the live quote, as I normally do. Therefore, I have instead decided to open up my personal account at Ameritrade and use a screenshot of the actual purchase that I had then made in my account so as to date and time stamp my purchase here for this blog:

    (click to enlarge)

    DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you.

    Disclosure: I am long AAPL, CSCO, FSLR, S, SPWR, WFR.

    Stocks: AAPL
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