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Friday, June 27, 2008

Futures Options Series - Option Strategies and Conclusion

Challenge Accounts:

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

Personal Trading Thoughts: I'm not going to be trading today, as I'll be away from home. My wife isn't working today, she took the day off. So I am too. Sometimes you just have to spend the day with the people you love. So I'm taking the day off to spend it with my wife. I'll monitor the markets from my phone ...

Personal Investing Thoughts: This has been a really nice week for DRIP's. On Thursday, my broker showed up my DRIP'd shares of my FRO stock. Today, I was just notified that I was DRIP'd in more shares of BAC, in the $24.00 region; which gives me a wonderful DCA. I should be clear, and state that the Challenge project however, recieved no shares DCA's, as I bought those shares after the ex-date for the dividend. But on the 30th? I receive my SFL Divvy, which again, will be DRIP'd.

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 ...

We discussed why options are valuable. We discussed what is meant by the term "Put" option, and "Call" option. We discussed the five components of pricing with the Black - Scholes model.

I will finish up by talking about Futures Options Strategies ...

I'll continue in the future, through the week - with Trader Thoughts Videos ...

* * *

Investing Account Balance: $202.51
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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