 |
| Currently in an oversold position. |
iShares Silver Trust (SLV) $31.04
Profit Target (15%): $35.75
Trailing-Stop (ATR x 2): $3.76
Tuesday, September 27, 2011
Leveraged ETFs (27 Sep 11): AGQ
ProShares Ultra Silver (AGQ) $120.45
Profit Target (20%): $144.00
Trailing-Stop (ATR x 2): $38.16
Friday, September 23, 2011
Leveraged ETFs (26 Sep 11): SPXU
ProShares UltraPro Short S&P 500 (SPXU) $20.51
Profit Target (20%): $24.60
Trailing-Stop (ATR x 2): $2.98
Traditional ETFs (26 Sep 11): TLT
iShares 20+ Year Treas Bond (TLT) $120.83
Profit Target (15%): $138.95
Trailing-Stop (ATR x 2): $4.74
Long Call (26 Sep 11): TLT
TLT $120.83
Buy to Open (1) Jan 12 120 C @ $6.60
Net Debit: $6.60 ($660.00)
Profit Target (50%): $9.90 ($990.00)
Stop-Loss Point (50%): $3.30 ($330.00)
Long Put (26 Sep 11): GDX
GDX $56.41
Buy to Open (1) Jan 12 57 P @ $6.75
Net Debit: $6.75 ($675.00)
Profit Target (50%): $10.15 ($1,015.00)
Stop-Loss Point (50%): $3.40 ($340.00)
Bull Call Spread (26 Sep 11): TLT
TLT $120.83
Buy to Open (1) Oct 11 116 C @ $6.35
Sell to Open (1) Oct 11 121 C @ $3.30
Net Debit: $3.05 ($305.00)
Breakeven: $119.05
Max. Profit: $195.00
Pct Return: 63.9% (28 days)
Bear Put Spread (26 Sep 11): GDX
GDX $56.41
Buy to Open (1) Oct 11 60 P @ $5.45
Sell to Open (1) Oct 11 55 P @ $2.59
Net Debit: $2.86 ($286.00)
Breakeven: $57.14
Max. Profit: $214.00
Pct Return: 74.8% (28 days)
Sunday, September 18, 2011
Saturday, September 17, 2011
Leveraged ETFs (19 Sep 11)
ProShares Ultra QQQ (QLD) $84.89
Profit Target (20%): $101.90
Trailing-Stop (ATR x 2): $7.98
Traditional ETFs (19 Sep 11)
PowerShares QQQ (QQQ) $56.59
Profit Target (15%): $65.10
Trailing-Stop (ATR x 2): $2.82
Long Call (19 Sep 11)
QQQ $56.59
Buy to Open (1) Jan 12 56 C @ $4.06
Net Debit: $4.06 ($406.00)
Profit Target (50%): $6.10 ($610.00)
Stop-Loss Point (50%): $2.05 ($205.00)
Long Put (19 Sep 11)
SLV $39.39
Buy to Open (1) Jan 12 39 P @ $3.70
Net Debit: $3.70 ($370.00)
Profit Target (50%): $5.55 ($555.00)
Stop-Loss Point (50%): $1.85 ($185.00)
Bull Call Spread (19 Sep 11)
QQQ $56.59
Buy to Open (1) Oct 11 54 C @ $3.77
Sell to Open (1) Oct 11 59 C @ $0.78
Net Debit: $2.99 ($299.00)
Breakeven: $56.99
Max. Profit: $201.00
Pct Return: 67.2% (34 days)
Bear Put Spread (19 Sep 11)
SLV $39.39
Buy to Open (1) Oct 11 43 P @ $4.40
Sell to Open (1) Oct 11 38 P @ $1.32
Net Debit: $3.08 ($308.00)
Breakeven: $39.92
Max. Profit: $192.00
Pct Return: 62.3% (34 days)
Thursday, September 15, 2011
Friday, September 9, 2011
Leveraged ETFs (12 Sep 11)
Leveraged ETFs
A Leveraged ETF offers the investor a simple way to buy a broad index or sector with double or triple the exposure of the underlying index. A Leveraged ETF will allow investors to put a leveraged bet on either side of the market, long or short. This means that you can buy a 2x or 3x bearish ETF which will increase when the market heads south; these are commonly referred to as inverse leveraged ETFs. Conversely, you could buy a 2x or 3x bullish fund which will increase when the market moves higher. These instruments are particularly useful for gaining exposure to the bearish side of the market in a rollover IRA or traditional IRA, where margin and short selling are restricted.
VelocityShares Daily 2x VIX (TVIX) $67.83
Profit Target (20%): $81.40
Trailing-Stop (ATR x 2): $15.18
PowerShares DB Double Long (DGP) $69.85
Profit Target (20%): $83.85
Trailing-Stop (ATR x 2): $6.50
ProShares UltraShort Dow30 (DXD) $20.41
Profit Target (20%): $24.50
Trailing-Stop (ATR x 2): $2.20
ProShares UltraShort Financials (SKF) $80.73
Profit Target (20%): $96.90
Trailing-Stop (ATR x 2): $12.42
Direxion Emerg Mkts Bear 3X (EDZ) $23.98
Profit Target (20%): $28.80
Trailing-Stop (ATR x 2): $4.60
Trading leveraged ETFs comes with a significant amount of risk, especially if the market begins moving against you. This is why advisers recommend using a stop loss order. A trailing stop causes a stock to be sold if it falls a particular dollar amount from the most recent high.
All positions displayed are for educational purposes only and are not intended to be recommendations.
Traditional ETFs (12 Sep 11)
Traditional ETFs
A Traditional ETF is essentially an index fund that trades like a stock. There are traditional ETFs covering everything from broad stock indexes to individual commodities. These ETFs are useful tools for inexpensively diversifying your portfolio, and they are available in all major asset classes. If you generally like to pick individual stocks but you don’t know much about a certain sector or region, you could use an ETF to complement your stock allocation so that you’re more broadly diversified.
iPath S&P 500 VIX (VXX) $45.83
Profit Target (15%): $52.70
Trailing-Stop (ATR x 2): $6.10
Market Vectors Gold Miners (GDX) $65.81
Profit Target (15%): $75.70
Trailing-Stop (ATR x 2): $4.34
iShares 20+ Year Treas Bond (TLT) $113.71
Profit Target (15%): $130.75
Trailing-Stop (ATR x 2): $5.00
SPDR Gold Shares (GLD) $180.70
Profit Target (15%): $207.80
Trailing-Stop (ATR x 2): $9.18
Like stocks, ETFs are traded on major U.S. stock exchanges and can be bought and sold anytime during normal trading hours. Because of their diversification, the price movement in ETFs is more predictable than in individual stocks.
All positions displayed are for educational purposes only and are not intended to be recommendations.
Long Call (12 Sep 11)
Long Call (ETFs)
A Call option gives the buyer the right to buy stock at a specific price (strike price) on or before a specific date in the future (expiration date). When you purchase a Call option you are basically betting that the price of the underlying stock will rise. The Call buyer loses money if the underlying stock does not rise before the expiration date.
VXX $45.83
Buy to Open (1) Jan 12 46 C @ $9.45
Net Debit: $9.45 ($945.00)
Profit Target (50%): $14.20 ($1,420.00)
Stop-Loss Point (50%): $4.75 ($475.00)
GDX $65.80
Buy to Open (1) Jan 12 65 C @ $6.50
Net Debit: $6.50 ($650.00)
Profit Target (50%): $975.00 ($975.00)
Stop-Loss Point (50%): $3.25 ($325.00)
TLT $113.71
Buy to Open (1) Jan 12 113 C @ $5.65
Net Debit: $5.65 ($565.00)
Profit Target (50%): $8.50 ($850.00)
Stop-Loss Point (50%): $2.85 ($285.00)
GLD $180.70
Buy to Open (1) Jan 12 180 C @ $13.90
Net Debit: $13.90 ($1,390.00)
Profit Target (50%): $20.85 ($2,085.00)
Stop-Loss Point (50%): $6.95 ($695.00)
REMEMBER: “When there is a small movement in the stock, there is a magnified movement in the option”. The “Long Call” strategy can be easily transformed into a “Bull Call Spread”, “Calendar Call Spread”, or “Diagonal Call Spread”.
All positions displayed are for educational purposes only and are not intended to be recommendations.
Long Put (12 Sep 11)
Long Put (ETFs)
A Put option gives the buyer the right to sell stock at a specific price (strike price) on or before a specific date in the future (expiration date). When you purchase a Put option you are basically betting that the price of the underlying stock will fall. The Put buyer loses money if the underlying stock does not fall before the expiration date.
EFA $48.75
Buy to Open (1) Jan 12 48 P @ $4.45
Net Debit: $4.45 ($445.00)
Profit Target (50%): $6.70 ($670.00)
Stop-Loss Point (50%): $2.25 ($225.00)
FXI $35.95
Buy to Open (1) Jan 12 35 P @ $2.74
Net Debit: $2.74 ($274.00)
Profit Target (50%): $4.15 ($415.00)
Stop-Loss Point (50%): $1.40 ($140.00)
EEM $40.01
Buy to Open (1) Jan 12 40 P @ $4.00
Net Debit: $4.00 ($400.00)
Profit Target (50%): $6.00 ($600.00)
Stop-Loss Point (50%): $2.00 ($200.00)
XLI $30.18
Buy to Open (1) Jan 12 30 P @ $2.65
Net Debit: $2.65 ($265.00)
Profit Target (50%): $4.00 ($400.00)
Stop-Loss Point (50%): $1.35 ($135.00)
VWO $41.15
Buy to Open (1) Jan 12 41 P @ $4.30
Net Debit: $4.30 ($430.00)
Profit Target (50%): $6.45 ($645.00)
Stop-Loss Point (50%): $2.15 ($215.00)
REMEMBER: “When there is a small movement in the stock, there is a magnified movement in the option”. The “Long Put” strategy can be easily transformed into a “Bear Put Spread”, “Calendar Put Spread”, or “Diagonal Put Spread”.
All positions displayed are for educational purposes only and are not intended to be recommendations.
Bull Call Spread (12 Sep 11)
Bull Call Spread (ETFs)
A Bull Call spread is a debit spread created by purchasing a Call with a lower strike price and selling a Call with a higher strike price. Both options expire in the same month. This is a bullish strategy and should be implemented when you expect the market to close above the strike price of the short Call option—the point of maximum reward (at expiration).
VXX $45.83
Buy to Open (1) Oct 11 40 C @ $8.45
Sell to Open (1) Oct 11 45 C @ $5.35
Net Debit: $3.10 ($310.00)
Breakeven: $43.10
Max. Profit: $190.00
Pct Return: 61.3% (41 days)
GDX $65.80
Buy to Open (1) Oct 11 62 C @ $5.85
Sell to Open (1) Oct 11 67 C @ $2.92
Net Debit: $2.93 ($293.00)
Breakeven: $64.93
Max. Profit: $207.00
Pct Return: 70.6% (41 days)
TLT $113.71
Buy to Open (1) Oct 11 109 C @ $6.40
Sell to Open (1) Oct 11 114 C @ $3.45
Net Debit: $2.95 ($295.00)
Breakeven: $111.95
Max. Profit: $205.00
Pct Return: 69.5% (41 days)
GLD $180.70
Buy to Open (1) Oct 11 172 C @ $13.50
Sell to Open (1) Oct 11 177 C @ $10.50
Net Debit: $3.10 ($310.00)
Breakeven: $175.10
Max. Profit: $190.00
Pct Return: 61.3% (41 days)
All positions displayed are for educational purposes only and are not intended to be recommendations.
Bear Put Spread (12 Sep 11)
Bear Put Spread (ETFs)
A Bear Put spread is a debit spread created by purchasing a Put with a higher strike price and selling a Put with a lower strike price. Both options expire in the same month. This is a bearish strategy and should be implemented when you expect the market to close below the strike price of the short Put option—the point of maximum reward (at expiration).
EFA $48.75
Buy to Open (1) Oct 11 54 P @ $6.20
Sell to Open (1) Oct 11 49 P @ $3.10
Net Debit: $3.10 ($310.00)
Breakeven: $50.90
Max. Profit: $190.00
Pct Return: 61.3% (41 days)
FXI $35.95
Buy to Open (1) Oct 11 40 P @ $4.55
Sell to Open (1) Oct 11 35 P @ $1.54
Net Debit: $3.01 ($301.00)
Breakeven: $36.99
Max. Profit: $199.00
Pct Return: 66.1% (41 days)
EEM $40.01
Buy to Open (1) Oct 11 44 P @ $4.80
Sell to Open (1) Oct 11 39 P @ $1.92
Net Debit: $2.88 ($288.00)
Breakeven: $41.12
Max. Profit: $212.00
Pct Return: 73.6% (41 days)
XLI $30.18
Buy to Open (1) Oct 11 32 P @ $2.72
Sell to Open (1) Oct 11 27 P @ $0.64
Net Debit: $2.08 ($208.00)
Breakeven: $29.92
Max. Profit: $292.00
Pct Return: 140.4% (41 days)
VWO $41.15
Buy to Open (1) Oct 11 45 P @ $4.80
Sell to Open (1) Oct 11 40 P @ $1.80
Net Debit: $3.00 ($300.00)
Breakeven: $42.00
Max. Profit: $200.00
Pct Return: 66.7% (41 days)
All positions displayed are for educational purposes only and are not intended to be recommendations.
Subscribe to:
Posts (Atom)