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Wednesday, June 18, 2008

Futures Options Series - Calls and Puts

Challenge Accounts:

Investing Account Balance:
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Personal Trading Thoughts: June is a sort of 'blah' month for me trading wise. I might have another e-mini short trade coming up. Depends on how things shape up and if support holds ... If not, then might short ...

Edit: Yeeeehaaaa! Might take profits shortly - 10:53 AM - really have to get twitter for this sort of thing. Already registered as "Airelon"

Personal Investing Thoughts: Overall, I'm just watching and waiting. Summer is here, and the market will be weaker. Many years, I turn my DRIP off in the summer, and receive straight cash. But not this summer. We've been in a bear market, and the market is offering bargain prices on many stocks. Therefore, my DRIP will remain on, so that I can accumulate more shares at better prices to DCA ...

Ok. We've gone through the Futures, and had a whole series on Commodity Futures. Yesterday, we discussed why options are valuable. Now we're going to talk about two types of options. Put options. Call options. What does that mean?

We'll start talking about Black-Scholes tomorrow.

* * *

Investing Account Balance: $233.52
Stock / Futures Trading Balance: $825.61
Online Savings Balance: $32.22

Total Trades: 4
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $65.50
Average Loss: $79.84
Accuracy Rate: 25%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.1
Trading Money Gain / (Loss): Down - ($59.68)

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, and tolerance for risk.

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