Third Friday Roulette

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Jul 15, 2005 1:24 pm

Today is going to be a good one for the Trader family.



Back in February I started hearing that Wal*Mart's sales were actually humming along pretty goo--the stock was in the low 40s.



As is my penchant I wrote fifty July 50 puts for $9.10 each.  I
didn't write calls at that point because they were only worth a buck
and change--no reason to assume unlimited risk for not much money.



As the stock rallied I was able to sell July 50 calls for 3.30 so I did, but only thirty times.



For those of you who do nothing but explain mutual funds what that
meant was I was obliged to buy 5,000 shares at 50 if it was below 50 on
July 15th while also being obliged to sell 3,000 shares at 50 if it was
above 50 on July 15.



In order to play this game it takes balls as big as Dallas and ice
water in the veins and I am no longer as good at that as I once was--so
about ten days ago I bought back the thirty calls--got a short term
gain of 2.60 per contract or $7,800 on them.  The punch line is
that I could have bought them back today for a gain of of $9,750 but
the $7,800 looked awfully good at the time and one never goes broke
taking profits.



Now I'm dealing with the puts--remember I have to buy 5,000 at 50 if
it's below 50 this afternoon.  At his exact moment it's 50.09 and
the puts are nickel bid dime offered.  I'm going to wait, still
time to go in the trading day.



If it ends up below 50 I'll let them put it to me--the stock is strong
and I should be able to get out in a few days at 50 or better.



Check WMT over the weekend.  If it's over 50 per share think of
Putette and I having a nice dinner to celebrate a second short term
gain of $45,00 plus.  If it's below 50 figure that I'm concerned,
but not too concerned.



I didn't have to deposit any money up to do that trade--just let some
mutual funds sit there.   So what is my percentage
gain?  How much alpha did I add to the mutual funds?



Life is good when a plan comes together--although I've been nervous at
a cat and not wanting to wander too far from my computer for the last
couple of weeks.

Jul 15, 2005 1:45 pm
Put Trader:


Life is good when a plan comes together--although I've been nervous at a cat and not wanting to wander too far from my computer for the last couple of weeks.


As per your posting tendencies on this forum it is obvious that you NEVER wander too far from your computer.

Jul 15, 2005 4:00 pm

I was told by a reliable source that Put is an unemployed day trader who divides his time between the Etrade, Yahoo, and RR. Meanwhile, he has the TV on either Fox News or CNBC. I didn't realize that the rooms in nursing homes had internet hookup.


By the way, congratulations PUT, you have posted almost                100 messages this week.  I bet  that doesn't leave much time for your imaginary job or imaginary family

Jul 15, 2005 4:10 pm
Coag:

I was told by a reliable source that Put is an
unemployed day trader who divides his time between the Etrade, Yahoo,
and RR. Meanwhile, he has the TV on either Fox News or CNBC. I didn't
realize that the rooms in nursing homes had internet hookup.


By the way, congratulations PUT, you have posted
almost       &nbs p; 
      100 messages this week.  I bet  that doesn't leave much time for your imaginary job or imaginary family





Not a day trader at all--never understood those guys.  I'm a put
trader--it was a logical thing to do in light of the family name--when
I was playing linebacker in school the announcer used to drawl, "Put
Trader made th the tackle" and my parents would be so pround.



As for the 100 posts this week.  How long did it take you to make
yours?  Thirty seconds?  OK, I'll admit to wasting 3000
seconds this week--what's that about five hours?



Is it OK if I post early in the morning?  I get up sometime around
5:30 or 6:00--it depends on my bladder.  In any case is it OK if I
sit in front of the early morning biz reports, sip coffee and quietly
click the keys?



How do you know that a week ago I had posted about 100 less than
today--surely you're not saying that you have a Put Trader
scrapbook?  Want a poster for the back of your door?

Jul 15, 2005 5:52 pm

3000 seconds not = about 5 hours.  One hour is 60seconds x 60 minutes = 3600 seconds.  One minute is 60 seconds.  One hour is 60 minutes.  Hence 3000 seconds = 50 minutes (60seconds x 50 minutes = 3000 seconds). 



If you are a real trader, this kind of calculation should be done very quickly and ACCURATELY.



Something is strange....

Jul 15, 2005 6:23 pm

He was the Forex Gump of the LaSalle Street School. A real runner. I
heard he used to tell everyone he could "My underwear are like a box of
chocolates."

Jul 16, 2005 12:42 am

Hey put do you think there is a lot to learn from this website?


Do others think they learn a lot from this website?


Cheers