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Tuesday, July 28, 2009

Challenge Project Summary: July 27, 2009

Previous Challenge Project Balances:

Investing Account Balance: $504.34
Stock / Futures Trading Balance: $1,464.14
Online Savings Balance: $100.06

The original video explanation of the Challenge Project is to be found here.

Some time ago I stated that I may split up Rule No. 2, into weekly segments; or, $25.00 a week. Rule No. 2 states that each month, we can divy up $100.00 as we wish ...

Well, I honestly was going to have a nice pretty little video for todays entry. Charts. Account Balances. Commentary.

Unfortunately, my utility provider DTE decided not to cooperate. As I was 'mid chat' in the Ventrilo voice server this afternoon with the guys, the power went out in the entire house. Therefore, I am typing out this entry from a Panera Bread restaurant, that's down the street from myself.

But, as yesterday was Monday, I figured I had best include an update regarding the Challenge Project.

First of all, the $25.00 weekly deposit went to the Investing Account. The investing account continues to hold on to that hedge option as well. I would love to have about $700.00 cash in that account come this November. We'll see how that turns out.

I'm not sure if you guys were checking out my Twitter updates today? But Gold took an enormous intraday dump this morning, whose range exceeded the previous five days of market action. Which works out great, since the Challenge Project Trading Account is holding an 89 GLD September Put option. Between that, and my personal accounts? Dan was doing a happy little dance around the house today.

So the account balances, at this point, read as follows:

Challenge Project Balances After Rule No. 2 Deposit:

Investing Account Balance: $503.19
  • 4.1064 shares of KO
  • 3.0301 shares of JNJ
  • 1 SPY 80 Put - September Hedge
  • Cash: $89.12
  • Additional $25.00 available from slush fund
Stock / Futures Trading Balance: $1,456.18
  • 1 GLD 89 Put - 56 days left to expiry
  • Additional $25.00 available from slush fund
Online Savings Balance: $100.06
  • $25.00 for a Slush fund / Drawdown Kill Switch fund
  • $50.06 for a base savings
  • $25.00 for Emergency Savings
We'll be back to the Challenge Project, next Monday ...

* * *

Note: 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 13 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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