My confession: My mistakes!

I went into RIMM call options yesterday, making several mistakes in this trade.

1. The stock price should hit 91.50 (my trading criteria), and I entered the trade with 2 call options at 90.90 (first entry).
2. I entered again with my third call option at 90.71, thinking it will hit 91.50 soon.
3. It's the expiration Friday and yet, I bought into the current day expiring options.
4. Volatility was so high that Dow Jones rose more than 120 points and dropped more than 120 points (i.e. 240 points move within 2 hours) later.


I was purely speculating and I lost my own trading rules. And as an experienced trader, I was wrong to do something like this. As a result, I lost US$379 in 2 hours.

NASDAQ Day: RIMM & AAPL - 5% wins!

A triple-digit Dow gain greeted the opening bell, and the market didn’t look back (at least until now).

Anyway, today is my NASDAQ day: I went into Research In Motion (RIMM) and Apple (AAPL), closing both tickers with 5% wins each.


RIMM Jan'08 95 Call (RULAS) - Enter @ 3.80, Exit @ 4.00 (5.3% profit)
AAPL Jan'08 185 Call (APVAQ) - Enter @ 2.31, Exit @ 2.43 (5.2% profit)

p/s: The RIMM was a roller-coaster ride. The lowest option price upon entry was only 2.60.

3 FX wins - 56 pips in total

Yesterday night, I didn't manage to wake up to play gapping my favourite ticker (RIMM). RIMM shot up almost $15 after another fabulous quarter.

I compensated myself with 3 winning forex trades:

1. USD/CHF - Short @ 1.1559, close @ 1.1551 (8 pips)

2. EUR/USD - Long @ 1.4361, close @ 1.4380 (19 pips)

3. GBP/USD - Long @ 1.9835, close @ 1.9863 (28 pips)

My first RIMM!

On wednesday when RIMM (the Blackberry company) was at $95+, I decided to buy an October 105 Call option. It's 2 steps out-of-the-money and it supposed to cost me $4.40. I'm quite keen to get RIMM but yet, I'm unwilling to fork out $440. I set a limit price at $3.85 and went to sleep at 1.30am (SG time). Haha, the limit price was executed around 3.30am at $3.85.

RIMM is expanding into China, with 2 new great products coming into the market and with very strong stock momentum. On thursday, stock price rallied to close at $100.50 (a jump of $4 plus) in anticipation of the company's Q3 earning report after market close.

Industry estimate (based on Briefing.com) was 0.49 and RIMM reported 0.50 with upside guidance. On friday, the stock gapped up $7.19 on the opening bell and next, it passed the criteria for guaranteed profit as determined by The Chicago Trick slightly before 11am ET.

And me, I made a 136% profit (my highest in recent days) when I close the position $9.10. RIMM continued to rally to the $114 region and the option i trade hit around $10.50 or more.

My first RIMM!