Oct 1 Options Writing Trades Update

Stocks in Japan and Australia bounced higher on Wednesday and the yen steadied as investors edged away from safety plays on hopes that a salvaged Wall Street rescue plan in Washington could keep global equities rallying. All eyes are now on how the saga will unfold. I am dugged deep on the Oct Puts & Dec Calls which are still vulnerable to huge swings.... not an ideal situation & will call for some intense trading.

Sep 30 Options Writing Trades Update

The Nikkei average slid 4.1 percent to hit a three-year closing low on Tuesday after U.S. lawmakers rejected a $700 billion bailout plan which caught Wall Street off guard. The benchmark Nikkei shed 483.75 points to 11,259.86, the lowest finish since June 2005. It earlier lost nearly 5 percent. In fact most Asian markets came off their day's low reflecting optimism that Congress may still act this week to approve an economic rescue plan. Wall Street rebounded Tuesday but whether it can pull through the day remains in question. We are now in a critical moment to say the least.

Sep 26 Options Writing Trades Update

The benchmark Nikkei shed 113.37 points to 11,893.16, its lowest close since Sept 18. Trade remained on the light side throughout the week, with investors sidelined as negotiations about the $700 billion bailout plan fell into disarray after a contentious White House meeting. Nonetheless, the market biasness appears more towards the bill being passed with some sort of bail-out plan imminent. As such, we can see that the N225 Dec Calls are still pretty much holding their grounds much to my dismal. In the short term, its likely that there may be some relief rally, but then reality may set in thenafter as the economic conditions are very weak. I hope the reading is right of course. In any case, I dipped my toes back into the market today by selling some N225 Oct 10000 Puts for 20 pts.

Sep 19 Options Writing Trades Update

Japanese stocks surged Friday, with investors heartened by news that the U.S.government is considering a more comprehensive solution to the mounting financial crisis. While details remain to be worked out, the plan is likely to authorize the government to buy distressed mortgages at deep discounts from banks and other institutions. In short, vast bailouts. Immediately, the word Moral Hazard comes to mind. Will this encourage more risk taking? Does this means that markets would rise from here. That the worst is over? I think its still too early to tell. I believe that the sluggish to bearish trend continues in the short to medium term & there could still be more gyration in the markets. For traders, all I can say is to stay very nimble during this period or what the heck, take a trading holiday & come back when the storm blows over. I wrote the Dec 14000 Calls & 14250 Calls for 35 pts & 25 pts respectively.

Sep 18 Options Writing Trades Update

It was another nightmare on Wall Street last night as the stock market took another nosedive Wednesday with the American banking system appeared even shakier and investors worried that the financial crisis is spinning so far out of control that even government rescues can't stop it. Asian markets continue their plunge Thursday. I cut the N225 Oct 10000 puts & wrote the 9000 puts. This is not suitable for everyone.

Sep 17 Options Writing Trades Update

The Nikkei average rose 0.9 percent from a three-year low hit the previous day, after the Federal Reserve's bailout of American International Group worked to calm some of the turmoil ravaging Wall Street. However, its still too early to dip our toes back into the Puts so we may just sit tight & watch the market for a while more. How often do we see upheaval on Wall Street that led to storied institution filing for bankruptcy, forced buy-outs, central banks interventions. Totally wicked & unprecedented I must say. This will be one of the trading "war story" we tell our grandchildren. I reckon that the market is still very weak/fragile & can turn on a dime as we have seen over the past weeks & who knows what other skeletons we have in the Financial Sector's closet. Nonetheless, I wrote the N225 Dec 14500 call for 20 pts today. Only upon seeing more stability in the market, one can consider the Oct & Nov N225 Puts which are still attractive to recoup some of the losses. Meanwhile, I am submitting my bids for the Lehman Brothers coffee mugs on ebay....

Sep 16 Options Writing Trades Update

Following the meltdown on wall street last night, Asian markets continued the blood letting Tuesday. I squared off all the N225 Nov & Dec puts to prevent further damage & to keep profits intact. We shall have to wait & see how the situation pans out before we get back in. On days as such, its best to stay at the sidelines & watch.

Sep 15 Options Writing Trades Update

The U.S. dollar tumbled and Treasury debt and gold prices jumped on Monday after talks to sell Lehman Brothers faltered, leading to grave uncertainties about other banks and shaken confidence in the financial system.
Asian markets are trading in negative territory as we speak except for China, HK, Japan & Korea which are having a national holiday & perhaps not a bad timing. We can expect a turbulent session tonight when the U.S. markets reopen for business.

Sep 10 Options Writing Trades Update

The benchmark Nikkei average ended down 54.02 points at 12,346.63, after falling as much as 1.9 percent earlier. I wrote additional N225 Nov 9250 Puts for 20 pts.

Sep 8 Options Writing Trades Update

Monday saw "Strong" forces at play here that triggered a welcome rebound of the Nikkei, up a whopping 3.4%, erasing last Friday's losses by way of the U.S. government's bailout of mortgage finance companies Fannie Mae & Freddie Mac. It must be pretty desperate as the announcement came out over the weekends with folks working overtime. One cannot help but to feel that there were some over-arching agenda to shore up the slumping housing market and to ward off more global financial market turbulence but the question is what is it? How long can this last? Till after the presidential election in Nov? Your guess are as good as mine.

Sep 5 Options Writing Trades Update

There sure was some big moves today with the Nikkei plugging 345 pts or 2.8% Friday. Being on the cautious side, I wrote limited N225 Dec 10000 puts for 105 pts. I also added N225 Nov 9250 Puts for 20 pts to Nov's positions.

Sep 4 Options Writing Trades Update

The Nikkei index slipped 1.1 % on Thursday as further signs of a slowing global economy from the euro zone to Japan hit sectors, such as technology, that rely on exports. I will be more cautious on taking on the Puts for Dec. Dec's calls are also not ideal right now in that the 15500 calls premiums aren't that attractive Vs the risk & if we were to move further to the 15000 calls, it increases the risks. So it is tough to trade on days like this. We will have to see some major moves first before dipping our toes in.

Sep 2 Options Writing Trades Update

The benchmark Nikkei ended down 224.71 points to 12,609.47, after gaining as much as to 12,920.52. For most of the day, the market moved in a narrow range. It showed little reaction to Prime minister Fukuda's abrupt resignation as investors were still grappling with its implication. I am looking to write the Dec's call options this or next week. Nov's put still looks attractive.