Investment Fund Series A Update for end Fri 10-Oct-08

STO 110x Contracts today.
SELL to Open 20x on C-Oct-12.50-PUT at $1.11
SELL to Open 10x on C-Oct-15.00-PUT at $1.80
SELL to Open 10x on C-Nov-15.50-PUT at $2.83


SELL to Open 20x on MS-Oct-12.50-PUT at $3.34
SELL to Open 30x on MS-Oct-7.50-PUT at $2.38
SELL to Open 10x on MS-Oct-5.00-PUT at $2.05
SELL to Open 10x on MS-Nov-5.00-PUT at $2.60

Friday 10-10-2008.
The US ban on short selling was lifted yesterday 9-Oct.
Today is the most volatile day in the entire history of Dow. Dow swings more than a 1,000 points within a single day. All financial stocks with MS being the worst, came under attack and price crashed. G7 heads were having an urgent meeting in Washington in the afternoon on how to unfreeze the credit situation. Expect short sellers to close their positions before end of Friday. Also expect market to stabalize somewhat during next week.
Very high implied volatility today with MS crossing 500% and C 200%. Not a good time to BUY option as it gets much more expensive due to extreme high volatility and expiry Friday is just around the corner (7 days away) on Fri 17-Oct. So decided to SELL instead of BUY to enjoy time decay and expected volatility decay.



Assuming all factor remains the same, if the Volatility decreases by 50%, the Option price will drop by more than 50% and we will get to keep at least half the earnings.

Investment Fund Series A Status

Total net asset US$53,913. Cash position US$56,361.

Investment Fund Series A Update for end Thu 9-Oct-08

STO another position.
SELL to Open 10x on C-Oct-12.50-PUT at $1.18


Set up BUY LIMIT queue to BTC (BUY To Close) at targeted profits. The BTC orders got transacted while sleeping and all 3 positions CLOSED. Collected profit of $1,299 for C within a day.

Investment Fund Series A Update for 8-Oct-08

Testing out a new concept. Have been wanting to buy C (Citibank) since it has dropped to $20. But advice from personal and private banker is to wait as they believe C will continue to drop to close to or below $10.
One strategy is to buy half of the intended amount of Shares and use some of the balance money to sell PUTs. So if C price goes up and stay above the Strike Price, one gets to keep the Option money. And the C Shares bought will enjoy the price appreciation. If the price drops to below the Strike Price, one will get to buy the 2nd batch of C Shares cheaper than originally intended. The cost of the 2nd batch of Shares purchased will be the Strike Price minues the Options sold price.

Testing out this concept on the Options but wihout buying the Shares.... since volatility is high.

SELL to Open 10x on C-Oct-15-PUT at $1.80.
SELL to Open 10x on C-Nov-15-PUT at $2.68.

Fund A Status
Total net asset US$60,310. Cash position US$45,310.

Fund Series B Status

Total net asset US$15,547. Cash position US$5,717.