|
Date |
Comments & Action (all figures include
commission charges) |
Debit/Credit |
Balance |
|
 |
| Jan 8 2008 |
Sold 10 Uncovered Call Contracts Feb
$26.00 for $0.91 each.
This is one of my favorite strategies,
selling uncovered calls. If you missed my
comments about selling uncovered calls
you can
read them in Part 1. Since November the
stock had not recovered. Around mid-December
2007 the 10 day simple moving average almost
crossed the 20 day exponential average, but
then it fell back. This was my cue to sell
uncovered calls.
These uncovered calls expired in February,
unassigned. |
895.05 |
895.05 |
|
 |
| Mar 24 2008 |
Bought 1000 shares at $25.20
In hindsight this was a mistake, but the 10
day simple moving average (SMA) had crossed
the 20 and 30 day exponential moving
averages (EMA). It had done this a couple of
sessions earlier and today the stock moved
higher than yesterday. I took this to mean
that the stock was moving higher and bought
shares. |
(25204.95 |
|
|
 |
| Apr 16 2008 |
Sold 1000 shares at 23.55
The 10 day crossed the 20 and 30 day EMA a
couple of sessions earlier. The stock fell
quickly and today it jumped up. I could
wait, but I take the signals seriously and I
sold my shares for a loss. |
23545.05 |
(1659.90) |
|
 |
| Apr 30 2008 |
Bought 1000 shares at $25.60
The 10 day simple moving average crossed the
20 and 30 day EMA two sessions earlier. I
was somewhat concerned as the stock pulled
back a bit today as it has the last two
sessions. However as I follow the moving
averages strategy consistently, I bought my
shares today |
(25604.95) |
|
|
 |
| Jun 6 2008 |
Sold 1000 shares at $27.00
The last few sessions the stock was
meandering sideways. The 10 day just a few
sessions ago was looking like it was going
to pull back. I decided to stay with what I
had learned from last year, and I sold my
stock to lock in my profit. |
26995.05 |
1390.10 |
|
 |
| Jun 23 2008 |
Sold 10 Uncovered Call Contracts Jul $24.00 for $1.27 each.
With the 10 day SMA falling through the 20
and 30 day EMA, I sold uncovered calls. The
mood of the market is poor and technology in
general is falling. If the stock moves back
up I will buy stock and turn these into
covered calls.
These uncovered calls expired in July,
unassigned. |
1255.05 |
1255.05 |
|
 |
| Aug 13 2008 |
Bought 1000 shares at $24.20
I really should have sold uncovered calls
shortly after the stock pulled back after I
sold my shares on June 6 2008. But again,
hindsight is great isn't it. Today the 10
day simple moving average crossed the 20 day
exponential moving average and 30 day
exponential moving average. I bought shares. |
(24204.95) |
|
|
 |
| Aug 28 2008 |
Sold 1000 shares at $24.67
The stock moved up after I bought it on
August 13 and then it meandered with a
slight biased to the downside. The 10 day
simple moving average kept falling so I
decided to close early and lock in my
profit. I felt pretty good about making sure
to close when I felt that the 10 day simple
moving average looked to me like it could be
turning. In the chart above you can see how
the 10 day was turning back down. While the
trend could change and move back higher, I
felt it prudent to close. |
24665.05 |
460.10 |
|
 |
| Oct 13 2008 |
Sold 10 Uncovered Calls Nov $19.00 at
$1.35
There is now nothing but bad news in the
stock market as it falls almost every day
since Lehman Brothers went under. There is
no doubt in my mind that the stock is going
to fall lower along with the entire market.
This is my chance to sell uncovered calls.
Today volatility was enormous and the stock
ranged from 17.80 to 19.30 and closed on the
high. I sold the Nov 19.00 strike. If I was
wrong I would buy stock and turn it into a
covered call. I was pretty sure the stock
would fall a lot further. I could have
considered buying puts, but that is not a
strategy I am good at. The volatility made
for terrific premiums.
These uncovered calls expired in November.
This concluded my Cisco Trades for 2008 |
1335.05 |
1335.05 |
| |
TOTAL INCOME TO NOV 2007 - $3675.05
Largest Amount Invested - $25604.95
Return on capital - 14.35% |
|
|
Closing early when I determined that it was
better to lock my profit in, worked very well this
year. What i really enjoy about my trading and using
the moving averages strategy is that my money is not
in the market all the time. Therefore when the
market collapsed, I was able to sell uncovered calls
and keep my capital out of the market as it
collapsed. This was all due to following the moving
average strategy. The 10 - 20 - 30 moving averages
strategy showed in September that I should not
commit any capital to the market. The averages
showed that the stock was falling every day. How
simple is that! The moving averages kept me out of
the market during the worst of the crash. For such a
simple strategy, it has excellent fringe benefits.
