Fund D Update for 22-Jan

Unrealized loss of about -$3K.
Net Asset = $105,150.
Cash On-hand = $119,551.

My friend John K asked how come all or most of the trades are profits only. Don't you make losses ? Answer is yes, we do make losses from time to time, both Realized and Unrelized Losses (paperlosses). So will try to spend 5 minutes a day to post a short note on Net-Asset position for a week or two dedicated to Mr.K.

Fund D Update for 22-Jan on NOK

NOK announced earnings tumbled 69%. Share price dropped.
(Buy PUT and/or Sell CALL-SPREAD).

STO
10x NOK-Feb-$14/$15-BEAR-CALL-SPREAD at $0.35

BTO
10x NOK-Feb-$13-PUT at $0.70
10x NOK-Feb-$12-PUT at $0.35

STC
10x NOK-Feb-$13-PUT at $1.250 profited $550 (78.6%)
10x NOK-Feb-$12-PUT at $0.725 profited $375 (107.1%)

Position still open
10x NOK-Feb-$14/$15-BEAR-CALL-SPREAD at $0.35 (most likely to keep 100% potential max profit $350 by Expiry Friday 20-Feb).

Remarks :
STO = Sell-To-Open
BTO = Buy-To-Open
STC = Sell-To_Close
BTC = Buy-To-Close

Fund D Update for 21-Jan

Dow gone up across the board.
Unrealized loss of -$10,425 reversed into a small positive gain of $921 within a day.

UnRealized gain about +$921.
Net Asset = $107,698.
Cash On-hand = $117,577.

Fund D Update for 20-Jan

UnRealized loss about -$10K
Net Asset = $97,616
Cash on hand = $117,889

POSITIONS MANAGEMENT
Price of C and BAC continue to drop and several of the Options were getting closer to the Stop Loss trigger points. No stop loss was triggered.

Implied Volatility is still very high with both C and BAC above 210%. We have entered the trades a bit early. If waited for 1 to 2 days before entering these positions, the potential profit could have been 50% more ! Margin has crossed my 50% buffer, so did not open more trades.

Total UnRealized loss is -$10,425. Quite a big sum. Many questions came up in the mind ..... should I move in ahead of the Stop Loss and close the positions ? Should I move out the Stop Loss further by 10% to 20% ? Obama already sworned into office. His team will start working on the financial crisis... so expect the market to stabilize very soon over the next 1 to 2 days (price need not increase, just need to stabilize and we will still win at Expiry Friday!).

It's the Darkest before Dawn... thinking of whether to move the Stop Loss out by another 10% to 20% but decided to keep the Stop Loss position as it is. If C and BAC continue to drop another 5% to 10%, likely at least half of the positions will be triggered by the Stop Loss Protection and close out.