Search This Blog

Monday, February 18, 2008

ESH8 Put and Thoughts on Investing . . .

Challenge Accounts:

Investing Account Balance: $131.14

Stock / Futures Trading Balance: $594.19 - Additional Position Worth: $55.00
Online Savings Balance: $2.06

Ok. The other day I bought an ESH8 1100 Put for about $89.00 in the stock / futures trading account. Today, I entered a profit stop with a good till cancel Limit order to sell it at 3.75 Limit. This would give me a little more than 1:2 risk reward ratio on the trade. The theta on this option is great enough that I really have a lot of 'wiggle' room on this option. Plus the volatility that this market has been displaying has demonstrated that there's no telling what even 10 days can do. And volatility is exactly what we like when dealing with options.

The futures jumped up a little today. Which is sort of silly, because the volume is as great as the dirt in my toe jam, and there is no underlying movement today on the actual stock market. ;^) Tuesday and Wednesday will give us a more clear picture on what the S&P will be doing.

Ok, on my YouTube videos (Subscribe on my page at YouTube - since not all my videos make it to this daily blog) - I'm going to focus in on Investing. I've talked a LOT about trading, but not as much about investing. So I will have a few videos that deal with my separate investment accounts that I run as well.

* * *

Investing Account Balance: $131.14
Stock / Futures Trading Balance: $594.19 - Additional Position Worth: $55.00
Online Savings Balance: $2.06

Total Trades and Investments: 1
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 1
Average Drawdown: $86.51
Accuracy Rate: N/A
Average Reward: $0.00
Risk Reward Ratio: N/A

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.

Search Investing and Trading Articles and Products