Saturday, September 29, 2007

9/28 - Portfolio Status

Currently I have 3 options trade in play. Two bull calendars and one vertical spread. All the trades expire in Oct 2007

  • ACN Calendar Spread: I have been following Accenture for a while now and is seems to be hovering around $40 for the last few months. Although this is earning season - the trade was cheap and the P/L ration (amount of money I can make versus lose) was 2:1 - I went ahead with the trade. With ACN trading at around $40 - currently the trade is looking good and earnings are behind us. Profit target is $500 and loss target is $200.
  • IBM Calendar Spread: Another technology stock which has been bullish and resilient in the last 6 months. A calendar @ 120 was an easy choice and the P/L is the same as ACN - 2:1. Profit target is $500 and exit point is a loss of $200.
  • SPY Vertical Spread: Shorting the market in this environment has been a successful strategy. I am close to my profit target of 80% = $400 on this trade and have an order in to sell the short arm if the option price drops to $.20. Looking for a very small loss on this trade ($100).
  • Other options I am exploring for the October expiry and November timeframe include
    • PEP Calendar Spread
    • AIG Calendar Spread
    • MO Calendar Spread
    • CSCO, CPWR, BRL and Q Covered Call (to trim my stock holding)
    More on why I am considering these trades and next steps shortly. As usual - your comments and suggestions are most welcome to make 20 into 100.

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