Investment Fund Series A Status

Total net asset US$82,044. Cash position US$81,111.

Fund Series B Status

Total net asset US$15,240. Cash position US$5,862.

Investment Fund Series A Update for end Tue 14-Oct-08

BUY to Close 20x on C-Oct-12.50-PUT at $0.10
BUY to Close 10x on C-Oct-15.00-PUT at $0.28
BUY to Close 10x on C-Nov-15.50-PUT at $1.15

C (Citibank) announcing result 2 days from now on Thu 16-Oct. As we do not play on earnings (due to unpredictable volatile outcome), decided to take profit and close out ALL positions on C and not wait till expiry Fri 17-Oct to keep 100%.
BUY to CLOSE out all C position and kept $5,200 profit.
All positions on MS still open and plan to leave it till expiry Fri 17-Oct to let them expire worthless and keep the full 100% profit. Probability of winning on the MS option ladder which has already been setup is more than 75%.
Noticed that MS Implied Volatility has dropped from 500% to only 127%... which is great as it will be much cheaper to BUY back to CLOSE if one choose to do so.

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.

Fund Series B Status

Total net asset US$15,071. Cash position US$4,916.
Earlier have a mixture of Stocks and selling Cover Calls.
Simple but maybe slower or negative growth due to potential downside on Stocks on current poor market sentiments.
To monitor and switch strategy as and when needed.

Go888Go INVESTMENT FUNDS

Go888Go INVESTMENT FUNDS

Have been trading Options for more than three years (since 2005). Original objective and target achieved.

Decided to setup a few small Investment Funds to trade Shares and Options with capital investment from close relatives and a small amount of my own. In future possibly to include friends' capital investment as well.
Objective is to help those who are not doing too well in their income and/or under-privilege by joint investing along with my own cash....... as a way of returning something back to the society.

Two fund accounts have been setup on 1-Sep-08 to test out concepts for 12 months.

These are Absolute Target Funds which have very specific target by Profit Amount and/or Time. These funds will be closed once the targeted Profit or Time has been reached.

Management fee is 20% on the profit gained. There will be NO management fee (zero) if the fund is not making money or making a loss.

Go888Go Investment Fund Series A (Started 01-Sep-08)
With a small capital base of US$50,000. Objective is to grow 100% to US$100,000 within a year. Aim is to profit about $5,000 per month. A 50/50 joint investment with relatives.

Go888Go Investment Fund Series B (Started 01-Sep-08)
Started with a small initial start-up capital of US$10,000. Objective is to growth 100% to US$20,000 within a year. Aim is to profit about $1,000 per month. Trading this account for a nephew.

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Go888Go Investment Fund Series C (Started 01-Jan-09)
Start-up capital of US$20,000. Objective is to growth 100% to US$40,000 within a year. Aim is to profit about $2,000 per month. Joint account for a nephew (50%/50%).

Go888Go Investment Fund Series D (Started 10-Jan-09)
Start-up capital of US$100,000. Objective is to growth 100% to US$200,000 within a year. Aim is to profit about $5K to $10K per month. Joint account of 50% my own money (the Trader) and 50% from other investors (relatives only).

OPTION STRATEGIES

VERTICAL SPREAD i.e. Bull-PUT-spread and Bear-CALL-spread.

The trade is setup by selling an out-of-the-money PUT (or CALL) and simultaneously buying a further-out-of-the-money PUT (or CALL).

e.g. MS share price at $15.10. Sell one PUT-$15.00 and buy one PUT-$12.50. BULL-PUT-SPREAD.

(To deploy when Implied Volatility is higher than average and there is an identifiable support (or resistance) level. To profit from time decay or a decline in volatility)

Cut loss is at the negative of same amount of max potential profit.

Take profit when 80% of max potential profit has been achieved.

CALENDAR SPREAD

PURPOSE: To take advantage of differences in option volatilities.

A calendar spread is entered into by buying one option of a given strike price and expiration month and simultaneously writing an option with the same strike price but a different expiration
month that has less time until expiration than the option you bought.

Key Factors
1. The option sold should be trading at a volatility at least 15% higher than that of the option bought.
2. Do not use this strategy if option volatility is high (the lower the volatility, the better).
3. No more than 45 days remain until the option sold expires.
4. You have some reason to believe the underlying will remain within a particular range of prices.

SYNTHETIC LONG FUTURE POSITION

The trade is setup by buying an out-of-the-money CALL and simultaneously selling an out-ofthe-money PUT.

e.g. MS share price at $11. Buy one CALL with strike of $12.50 and SELL one PUT with strike of $10.00.

RATIO SPREAD

The trade is setup by buying one at-the-money CALL and simultaneously selling two out-of-the-money CALL.

e.g. AAPL share price at $67.65. Buy one CALL-$70 and SELL two CALL-$75.

STRADDLE (and STRANGLE)

PURPOSE: To take advantage of low volatility or quiet market conditions to profit from the next big price move.
Buying a Straddle involves buying a CALL and a PUT of the same strike price simultaneously. Buying a Strangle involves buying a CALL and a PUT with different strike prices simultaneously.

Key Factors
1. You have some reason to expect a sizable price movement by the underlying.
2. Option volatility is low.
3. Adequate time remains until expiration.
4. There is an equal opportunity to make money whether the underlying rises or falls.

BUTTERFLY SPREAD

PURPOSE: To take advantage of high volatility and trading range conditions to collect option premium.

The butterfly spread strategy using CALLS involves buying a CALL option at one strike price, writing two CALL at a higher strike price, and buying one more CALL at an even higher strike price.
The butterfly spread strategy using PUTS involves buying a PUT option at one strike, writing two PUT at a lower strike, and buying one more PUT at an even lower strike price.

This trade is always done in a ratio of 1:2:1. Can enter the spread in a ratio of 1:2:1, 2:4:2, 3:6:3, 5:10:5, 10:20:10, and so on. From a strictly mathematical viewpoint, the butterfly spread canoffer a very high probability of making money on any given trade.

Key Factors
1. You have some reason to expect the underlying to stay in a trading range.
2. Option volatility is high (the higher, the better).
3. Less than 60 days remain until expiration.
4. You can enter the spread at a favorable price.