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inside man 55
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Strategic trader, interested in stocks with value and good growth potential, also interested in larger macro trends. Currently I am long AAPL, GTAT, and have a small position in PXLW. I actively trade options and may buy or sell options at any time.
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  • Apple Account Update

    I am updating what happened in my 3 accounts concerning Apple. As a refresher, account #1 is buy and hold, account #2 is writing covered calls, account #3 is buying calls or puts only.

    Here is how the performed from when I started keeping track 8/11/2014.

    Account #1 - Buy and hold 100 shares AAPL 1 yr

    8/11/2014 $9,515.95
    8/20/2014 $10,049.00

    Total gain $533.05

    Account #2 Covered Calls

    8/11/2014 $9549.73
    8/15/2014 $9643.00

    Total gain $93.27

    Account #3 Calls & Puts - buy an equivalent amount of calls or puts to approximate the delta of 100 shares

    8/11/2014 $696.00
    8/20/2014 $1420.00

    Total gain $724.00

    I stopped Account #2 right away, I don't ever foresee this strategy being worthwhile. And this is after I thought #2 would be the winner in dollars gained after a year in my first instablog.

    Go Long Covered Calls Cash Secured Puts Delta matched Calls / Puts
    Commissions 1 4 3 2
    Taxes 1 4 3 2
    Upside Potential 1 3 4 2
    Downside Potential 4 3 3 1
    Dividends 1 4 4 4
    Total 8 18 17 11

    Items are ranked according to 1 is best, 4 is worst
    Lower Total is better

    There is no reason in my mind to use covered calls for capital appreciation, which is my purpose at this time. I learned this the hard way.

    My strategy going forward will consist of going long stock, going long calls or puts, or selling an item. I plan to focus primarily on calls and puts as I will match the delta of a stock only position but the
    amount of capital at risk is significantly reduced (inherent leverage of options).

    Disclosure: The author is long AAPL.

    Additional disclosure: Author may buy or sell AAPL or AAPL calls or puts at any time.

    Tags: AAPL
    Aug 20 1:32 PM | Link | Comment!
  • A Three Pronged Experiment On Apple Shares

    I have decided to run a little experiment on buying Apple shares. I will have three accounts and each will measure different things.

    First account - buy 100 shares, hold for one year, and do nothing. This will be the account to beat.

    Second account - buy 100 shares, actively write call options, and buy back 100 shares when necessary.

    Third account - buy one call option for 100 shares at any strike or month. Or more loosely, use any strategy of calls or puts I want limited to one contract

    I am looking to see which strategy gives me the greatest dollar amount of gain over the next one year completely passive, writing for income, or actively trading. My theory going in is the second account will be the winner.

    Here are my buy points so you can hold me accountable.

    First account - Buy 100 shares at 95.11

    Second account - Buy 100 shares at 95.94 and sell the Aug 14 96.43 call for 0.64.

    Third account - Buy one call for Sep 14 96 at 2.18.

    I will post any trades to account two and three and keep an update of how I am doing.

    Thanks for looking! I appreciate your feedback.

    Disclosure: The author is long AAPL.

    Additional disclosure: As mentioned I am long in the first account, long but writing calls on the second, and trading options on the third account.

    Tags: AAPL
    Aug 11 12:03 PM | Link | Comment!
  • Sold Calls On GT Advanced And Pixelworks And Sold Puts On Apple

    Well, I am still waiting to buy back my Apple shares. As I wait I have sold some Aug 8 puts at $91 at $0.20, a good five percent lower than today's opening price. I believe there is an outside chance Apple moves that much over the coming week. And if it does I will buy the shares no problem.

    Probably more interesting is the walloping I have taken on my PXLW works position, down almost 20% today. I am still holding, even though guidance was slightly lower than expected for Q3 (but based on one analyst). I believe the company has a lot of potential with their mobile video processing platform Iris going forward. Haven't quantified it and I probably should do so. To lower my cost basis I have sold Sep 14 $7.50 calls at $0.35, as I don't expect anything to happen between now and then.

    Finally, I did something very interesting on my GTAT position. I am nursing losses on this position, and luckily for me the call premiums are high and helping offset my losses. I sold two sets of calls, a small bunch at Aug 14 $14.50 calls for $0.60, and another set of calls at Sep 14 $16 for $0.70 (this basically became a spread from an existing Sep 14 $15 long call position). I am very bullish on GTAT past a six months time frame.

    Disclosure: The author is long PXLW, GTAT.

    Additional disclosure: Additionally, I have options positions in PXLW, GTAT, and AAPL, which I may trade at any time. I may also purchase Apple shares over the coming week.

    Tags: AAPL, GTAT, PXLW
    Aug 01 11:40 AM | Link | Comment!
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