Greatest trade yet in 2017!

This is one of my favorite trade in 2017 which I would like to share. It may not be the trade that makes the highest return but it is definitely a great example trade to show how I maneuver to flip a losing trade into a winning trade in style. As always options gives us a second chance to be profitable. Continue reading “Greatest trade yet in 2017!”

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Another biggest movement since Brexit!

Another greatest event is going to happen and the world is watching closely the US presidential election, 10 days away and would it be Hillary or Trump? I have no idea but what has been the most dramatic moment is the development of the event which is unprecedented in the US history. It begins with the nomination of Trump to the re-opening investigation against Hillary.  Continue reading “Another biggest movement since Brexit!”

Brexit but make sure our portfolio is still exist!

When there is a market event, a lot of traders are keen to speculate their views by trading directionally with the hope that if their are right, they can make a good fortune. Brexit/Bremain was a key event and the whole world was watching it. I was also following this event pretty closely to ensure that my position was well protected before entering the uncertain Friday.

Before this historic Friday, the odd of Brexit was pretty low. Not many people (even expert) would think Brexit will happen. As a result of this, S&P rallied with GBP while US treasury bonds and Gold plummeted few days before the polling day. I decided to hold my few SPY long put positions (bearish view) as I believed SPY had already price-in Bremain. My view was that if Bremain, market should have limited upside move (since it was already price-in); however if Brexit, market should crash because of the unexpected/surprise. In other word, the risk of buying SPY did not warrant the reward on the day prior the polling day. I was also ready to absorb losses of all my premium paid if I was wrong. The unexpected result on Friday did turn out to be favorable to me. I reaped over few hundred percents return (not much though in absolute amount) and I exited all my straight long put positions on Friday. 

As I am currently business traveling in Taiwan, Elite bookstore has become a must go place for me especially in this summer when outdoor activities may not be a great choice. I discover that there are a lot of books translated from japan to mandarin. One of it is candlestick technical analysis, which was originated in Japan and promoted to the western world by Steve Nison. I found a lot of great books that explains candlestick in detail, which has become my material to further strengthen my technical skill in trading the market. 

My portfolio is growing strong in June and I will share more in detail when I have the chance. Have a great evening!

Performance in Apr-May 2016 (May 2016 Expiration)

Yesterday was May 2016 Monthly Equity Options Expiration Friday. It has been a wonderful month for me without a single loss! Is it really a 100% winning rate and I am so accurate in identifying the direction of the market/stocks that I traded? Nope. No one can predict the future but everyone can take charge of it! If you look at my #4 AAPL trade, I was wrong but option repair strategy has given me a second chance to salvage my position and turn it into a wining position! Do click on the link below if you are keen to understand the thought behind the repair strategy.

Continue reading “Performance in Apr-May 2016 (May 2016 Expiration)”

Real Deal May 2016 – AAPL (Turning a Losing Trade into a Winning Trade)

AAPL crashed down breaking the main support around $92 this morning. As a result of this ‘mini crash’, my existing AAPL position (Bull Put Credit Spread) was challenged! There are few ways to repair this position. After considering all factors, I have chosen the most aggressive method, which is to close my sold leg (Refer trade highlighted in green in the screenshot below) and let my bought leg run. I subsequently close my bought leg (Refer the first two trades highlighted in red in the screenshot below).

Continue reading “Real Deal May 2016 – AAPL (Turning a Losing Trade into a Winning Trade)”

How to trade a bearish view

Sell in May and Go Away. If you are bearish and you would like to execute this trading idea, there are several methods you can use. In this post, I will reveal two frequently used methods to ‘short’ the market. However, if you are unsure, stay calm and do nothing! A lot of time, doing nothing can save us a lot of money!

Continue reading “How to trade a bearish view”

Earnings, to trade or not to trade? Part 1

We are currently in earnings session and over the past few weeks, earnings news streaming in everyday and those who trades earnings should enjoy adrenaline rush. What if you have bought a Put (betting the stock price down) on Google shares? You should be laughing to the bank. What if you have bought a Call instead? You may have lose all your premium paid!
Continue reading “Earnings, to trade or not to trade? Part 1”