Jun 28 Trades Update

I squared off my Jul 19500 N225 calls at 1pt. Looking to sell some more Sep N225 calls should the market conditions allow in the next few trading days. That would complete the Sep's income set up. Volatility is expected in today's market.

Jun 22 Trades Update

I wanted to buy back one of my N225 Aug 20000 call which I bought for 30 pts this week for 15 pts while the Japan market was down today but did not get filled. The Nikkei 225 index ended some 51 pts down. The current US market is down as we speak & appears that it will end the day on a negative note. If so, we shall see if Asian markets follows as well on Monday. I am looking to square off the N225 Aug 20000 calls since there is still quite alot of time left before expiration & I may possibly get to sell this option again from now till expiration with reasonable premiums given the volatility of todays market conditions. I will likey leave the N225 Jul 195000 calls alone(3 more weeks to expiration). All Jul ER2 calls & puts positions are far OTM & am planning to sit tight on those & let them expire worthless. At the rate ACH is going, it looks like the covered call positions will get called out & certainly no complains here.

Jun 21 Market Review

Well, the US market did an about turn & decline sharply last night. And so we have been warned of volatilty this year. Asian markets today seem to be holding out fairly well on their own. I bought back my N225 Jul 20000 calls at 1 pt to release some margins. I won't be placing anymore new trades this month in the US market as I have met the income target for the month plus I need to ensure there is enough funds for margin increases against my existing positions just in case. This is very important. However, I will be looking to open more Aug or Sep N225 calls when the opportunity presents itself. I would have to square off some N225 Jul 195000 calls to release some margin first.

Jun 20 Trades Update

Opened additional ACH covered call positions last night. Today, I got filled on additional N225 Aug 20000 calls at 30 pts & Sep 21000 calls at 25 pts. Looks like the US market is heading upwards tonight due to lower bond yield & "Home Depot" announcement of $22.5 Billion share buy back which bodes well for the Wall Street. This might mean that Asian markets are likely to go up as well tommorrow if Wall Street follow through & closes positive. We shall see.

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Jun 18 Trades Update

On Monday Jun 18, I got filled on additional N225 Aug 20000 calls for 25 pts. and ER2 Jul 940 calls for 0.4 pts. Looking to square off my N225 Jul calls to free up some margin this week where possible. ACH corrected some $1.27 to close at $41.24 but if it continues to hold above $35, I will be called out for my covered call plays most certainly.

June Trades Reviews

All Jun ER2 options expired nicely on Friday as the Russell 2000 index closed at 848.19 on positive inflation data. For next month's set up, some Jul 650, 670, 675 puts were written. Additional ACH covered calls plays were constructed to set up for Jun' income. The aquisition news proves positive for the counter as Aluminum Corp. of China Ltd. was the biggest percentage gainer Friday, rising $3.76, or 9.7 percent, to $42.51, after hitting an annual high of $42.64 during the session. The stock had previously traded between $15.52 and $39.63 over the past year. I would most certainly be called out on these CC positions on expiration day. In fact, I am looking to close out some ACH positions earlier based on the delta effect. NVDA, INTC, DELL are now all above their original price which is ok. You can see I am not too excited here & I will tell you why. You see, I would have to implement some recovery strategy for these positions because in order to close out this positions, I would have to buy back the options which I have sold at a loss. The other way is to just sit tight, do nothing & be exercised in Jan08 & take whatever small profit but this means that funds will be "stuck" & not be best utilised from now till Jan08. CSCO & GG are still below their original purchase price which is alright & means that I can continue to write secondary call options for future months. I will be looking to opening Nikkei 225 Aug & Sep calls & ER2 Jul calls in the coming weeks. Overall, this has been another good month of trading. I don't know about you but steady consistent gains month on month works for me.

June Trades Update while on Holiday....

While holidaying in Japan for the past 12 days, I wrote some N225 Jul 19500 calls & Aug 20000 Calls. Market appears sideways during this period and is favourable to the current positions. If the market rebound this week or next week, I am planning to write more Aug calls & possibly looking at Sep's as well. This week, I am also planning to write ER2 Jul puts to complete the set up for Jun's income. My Jun's position should all expire worthless this coming Friday to end another great month(May) of trading. On a separate note, just 2 days ago(Jun 11), I opened an ACH covered call position. On the next day (Jun 12) ACH announced their friendly aquisition of Vancouver-based Peru Copper for $792 million & trading is halted. We shall see how this pans out. Anyway, its a covered call play. This sector remains strong especially so as it is supported by the strong economic growth in China.