My focus this week was on Visa. Earlier in the week, I tried to short, figuring it was near the top. While I was wrong at the time, I was right overall. The past couple of days has seen Visa drop about 10%. Perfect play.. wrong time of entry.
Futures trading is pretty exciting. I’ve only been trading futures for about three days now, but I’ve learned quite a bit. With options, I pick a good entry/exit point and hold. Futures trading is much, much quicker taking a quick point or two and exiting. I think if I can get used to the fact that all I need is a point or two in my direction with futures trading, I may be alright. And I thought options trading was fast and exiting.
Weekly Profit / Loss: -$130
While not a huge loss, it’s a loss nonetheless. Next week is options expiry week. While I don’t care to trade during options expiry week, options pricing for the next month out is usually pretty decent. I’ll be compiling a shopping list and hopefully picking up a couple of trades here or there while I continue to learn the ropes of the futures market.
I’m on deck to potentially join the Virtual Office. While not as capitalized as they are, I think I can hold my own. And if not, I’m sure DT will promptly boot me, hah!
I have next week off once again so hopefully I can make some headway and perhaps turn a weekly profit. I’m in desperate need of one. Have a great weekend!
The action today was anemic. Now I understand what folks like Dinosaur Trader and others complain about when the markets behave like today. It also didn’t help that oil reached a record $126.22ish at its high. Visa took another hit today, down another 4 points. It’s reaching my entry/exit target of ~$81. My feeling is that folks will begin to buy Visa next week and perhaps pin it near the 85 strike price but only Monday can tell. There’s quite a bit of call open interest from 80, 85, and 90, so I would expect Visa to recover rather nicely. With the larger bankroll I have, I’ll probably purchase one or two May 85 calls and one or two June 90s for a longer term hold.
Trades Taken: 3 x NQ
P/L: +$10
That’s right, I’m positive on the day and trading the NQs at that! A victory is a victory.
We’re off to Yappy Hour (happy hour for dogs… don’t ask). See you tomorrow!
No trades taken yesterday due to other commitments. I was around in the morning and could have traded a perfect short on Visa but was unable to pull the trigger. I’ve noticed that happening more and more as of late which reminds me of my trading fears about 3 months ago after the markets crashed about 20%. But today’s another day and my account continues to grow from deposits. Need to work on fear… must reread Trading in the Zone…
Crude is now over $125 this morning. Be very careful. As oil goes higher, there’s very little chance the markets can follow. AIG also missed earnings last night which has helped put a damper on the markets this morning. Futures are down about 90 points with fair value around positive 40, for a net difference at the open of about -130. I don’t forsee this being a pretty day.
STOP DAYTRADING!
Someone please remind me to do the above. I’m not an options day trader. I’m losing too much money trying to day trade. Sigh.
Trades taken: 2 (Visa puts)
P/L: -$50
Today appears to be a better day. First, my deposits into my account have cleared. Our tax rebates have finally come in as well. Overall, I have a bit more firepower to play with so in terms of being properly capitalized and diversified, we’re one step closer.
On that note, I may dip my hand at trading the NQ futures. I’m still on the fence about it but we’ll see how the day’s actions go.
Oil topped $122 yesterday before settling near $121. Oil is currently sitting at $121.80. Goldman Sachs is predicting oil near $200 within the next 6 to 18 months which is scary in and of itself. Note that a couple of years ago, Goldman predicted $100 oil within the next two years. Look where we’re at now.
Stay sharp today!
Took a short position with puts on Visa around the open with a stop at the high of $86.05. So far, VIsa’s holding up extremely well in what looks to be a rough day for the markets with the Dow down about 90 points. More than likely I’ll be stopped out of the position for a loss but we’ll see. I’ll update as the day goes on.
Update: As I figured, never short Visa. Ever. Out with a loss after commissions of $22.50.