Wednesday, June 21, 2006
My First Entry
Welcome Easy Options Profits Traders to my Blog which has been prepared to assist you in your Options trading.
The Blog is here to assist you in using the Easy Options Profit System ("EOPS"). This Blog does not replace my weekly emails. You will still get these instructing you where we are on our trades.
The main reason for creating the Blog is because I have had lots of feedback from subscribers that want to understand more my thoughts on our positions on a daily basis and other financial events. I am painfully aware that not everybody wants to receive daily emails so I thought it would be a good idea to set up this Blog for all those who want to take advantage of it.
I will endeavour to enter on a regular basis my thoughts and views on the current trades we have on and any other issues or concerns you should be aware of. This is my first Blog so please bear with me as I get the hang of this "blogging" thing!!!
As you are no doubt aware at the moment it is a volatile period for the markets. All investors are nervous about what the Fed will be doing with interest rates on the 29th June. Another 0.25% rise seems a forgone conclusion but investors are waiting to see what clues will be given about whether there will be a pause in rate rises or whether inflation is still not controlled and further rate rises are required. If further rate rises are needed then expect some further increased volatility.
As you know extreme volatitlity in the markets is not something we like!!! Movement is fine as long as it is gentle!! For that reason I took the unsual move of just putting one trade on this month until we hear from the Fed on the 29th. Once we know what will happen re interest rates we can then place another trade.
The trade I placed was on the RUT index on 20 June 2006:
JUL 740/750 Call for 80c credit
JUL 620/610Put for 90c credit
I placed 12 contracts which gave me a total credit of about $2,040 after commissions. My margin is $12,000 which will give me a return of 17% for my 31 day position.
I will review the trade this week when the RUT hits 710 or 640.
I have however orders to close this trade if the RUT hits 720 or 635 in the next seven days at market price if for some reason it hits these points and I am not at my computer to monitor.
The markets had a good day today with the SPX up 12.08, DJIA up 104 and RUT up 13.17 to 690.07.
Keep an eye on the RUT over the next few days. Remember we will review our position when it hits 710.
Until next time.
The Blog is here to assist you in using the Easy Options Profit System ("EOPS"). This Blog does not replace my weekly emails. You will still get these instructing you where we are on our trades.
The main reason for creating the Blog is because I have had lots of feedback from subscribers that want to understand more my thoughts on our positions on a daily basis and other financial events. I am painfully aware that not everybody wants to receive daily emails so I thought it would be a good idea to set up this Blog for all those who want to take advantage of it.
I will endeavour to enter on a regular basis my thoughts and views on the current trades we have on and any other issues or concerns you should be aware of. This is my first Blog so please bear with me as I get the hang of this "blogging" thing!!!
As you are no doubt aware at the moment it is a volatile period for the markets. All investors are nervous about what the Fed will be doing with interest rates on the 29th June. Another 0.25% rise seems a forgone conclusion but investors are waiting to see what clues will be given about whether there will be a pause in rate rises or whether inflation is still not controlled and further rate rises are required. If further rate rises are needed then expect some further increased volatility.
As you know extreme volatitlity in the markets is not something we like!!! Movement is fine as long as it is gentle!! For that reason I took the unsual move of just putting one trade on this month until we hear from the Fed on the 29th. Once we know what will happen re interest rates we can then place another trade.
The trade I placed was on the RUT index on 20 June 2006:
JUL 740/750 Call for 80c credit
JUL 620/610Put for 90c credit
I placed 12 contracts which gave me a total credit of about $2,040 after commissions. My margin is $12,000 which will give me a return of 17% for my 31 day position.
I will review the trade this week when the RUT hits 710 or 640.
I have however orders to close this trade if the RUT hits 720 or 635 in the next seven days at market price if for some reason it hits these points and I am not at my computer to monitor.
The markets had a good day today with the SPX up 12.08, DJIA up 104 and RUT up 13.17 to 690.07.
Keep an eye on the RUT over the next few days. Remember we will review our position when it hits 710.
Until next time.
# posted by Paul @ 2:40 PM 
