______________________________________________________________________________
Issue No. 39 – August 15, 2005
Prescott, Arizona Systems@WiserTrader.com
______________________________________________________________________________
1.0
Trading
Below describes
how an unattended sell order can induce an under priced options premium.
1.1 Unattended Sell Orders
The title of this could be
“How Not to Sell an Options Contract”. It involves a recent experience I had
while holding a call option in a rising market. The level 2 screen showed that
most traders had their order prices programmed, no matter which exchange they
were trading. They had at least two criteria for submitting and modifying bid
and asking prices. One was to modify submitted prices as function of the
option’s intrinsic value or the theoretical fair value. Another was to always
bid a fixed amount below the lowest asking price, possibly to insure getting in
at a bargain. Likewise, sellers were obliged to always submit asking prices a minimum
fixed amount above the highest bid, no doubt to make sure they were not selling
the contract too cheaply. The result is a constant bid-ask spread that slides
upward and downward as the underlying stock price moves in either direction. It
is fascinating to see this “dance” operate like clock work, although it can be
rather frustrating and appear as a mystifying game at first.
While waiting to sell my single
call contract, the underlying stock began to rise sharply and continually. As
I watched the bid-ask prices move upward, I got my sell order prepared and had
my finger ready on the keyboard. Lo and behold, I noticed a single contract sell
order that did not move up in price as the underlying stock price continued to
rise. It seems that one intrepid trader decided he had had enough of the
bid-ask “dance” and decided to just enter his sell order at a fixed price and
leave it there until executed. Other seller’s prices continued to rise with
the underlying. But when bid prices neared the fixed seller’s price, they
suddenly backed away, even as the underlying stock price continued to rise.
You could tell these buy orders were preprogrammed. And obviously the solitary
fixed asking price seller had entered his sell order and walked away from the
computer. I waited the rest of the trading session for this impasse to resolve
itself. But it did not that day. The closing bid for the day remained the
same amount below the now under priced fixed asking price while the underlying
stock and all the other asking prices had advanced to astronomical levels.
© 2005 WiserTrader.com, LLC. Members of wisertrader.com are neither licensed
brokers nor licensed advisors. Trades discussed represent recommendations
made by the editor for the wisertrader.com portfolio. The newsletter and web
site are for information only and should not be considered as personal advice.
While it is believed that the posted information is factual, mistakes can be
made in transcription. Investors should trade stocks only after verifying all
information and consulting with a licensed broker or adviser. WiserTrader.commarkets third party trading systems but has no other affiliation
with trading system companies.
It is well established that
one should not post large stop orders where market makers can see them because
of the temptation posed to gun for the stops. This occurs routinely in the
Forex markets. As order processing becomes more automated it may become less
of a problem. Yet automation with programmed order adjustments can present
some unexpected nuances of their own. One solution might be to use text
messaging from a broker, to a pager, email or cell phone, to inform you when a
price or bid has reached a target level. Once the target is reached then you
can look at the situation directly and decide if you want to place a sell order
or hold off for a better price. Placing an unattended order may have unintended
consequences when programmable order adjustment software is taken into account.
2.0
Market Analysis
The Fed policy statement this
week really brought nothing new to the market. The stock market improvement is
mostly attributable to the continued impact of the bullish underlying factors
of strong profit growth and an accelerating economy. The outlook for the
market remains highly uncertain. It is a surprised that it has held up so
well in the face of the surge in oil prices. August is typically a weak
month for the market and the market very well could be in for some choppy
action through the end of this month. The week ahead brings the CPI and
PPI reports, as well as industrial production data, but the earnings calendar
is light. Figure 1 compares index tracking stocks for the major averages with
Sector SPDR’s.
.
FIGURE 1
Relative strength is given in
Table 2A.
Table 2A
Relative Strength Index
|
|
5 Day RSI
|
|
DOW
|
Neutral
|
|
S&P
500
|
Neutral
|
|
NASDAQ
|
Neutral
|
Market sentiment is shown
in Table 2B. Volatility has increased.
Table 2B
VTO Market Sentiment Indicators
|
Sentiment Indicator
|
Current
|
Last Week
|
2 Weeks Ago
|
Complacent
|
Cautious
|
|
VIX **
|
12.74
|
12.48
|
11.57
|
< 20
|
> 50
|
|
VXN ***
|
15.63
|
15.40
|
13.87
|
< 30
|
> 70
|
|
Put/Call Ratio
|
0.625
|
0.551
|
0.560
|
< 0.6
|
> 0.7
|
|
%Bulls - %Bears
|
39.8%
|
34.8%
|
33.3%
|
> 29%
|
< 20%
|
|
** Above 20 day SMA = Sell signal.
*** Above
20 day SMA = Sell signal.
|
Figure 2 compares index
tracking stocks with five leading ETF’s for the week.
FIGURE 2
Industry leaders in Table 2C
rank from highest to lowest.
In Table 2D, the broader
market moved sideways for the week.
Table 2D
Index Tracking Stocks, Key
Industry ETF’s and Sector SPDR’s
|
|
1 month
|
1 wk ago
|
2 wks ago
|
3 wks ago
|
4 wks ago
|
|
SPY (S&P 500)
|
0.2%
|
0.1%
|
-0.7%
|
0.2%
|
0.6%
|
|
DIA (DOW)
|
-0.3%
|
0.3%
|
-0.9%
|
0.1%
|
0.2%
|
|
QQQQ (NASDAQ 100)
|
0.8%
|
-0.7%
|
-0.3%
|
0.4%
|
1.4%
|
|
IWM (Russell 2000)
|
-0.7%
|
-0.7%
|
-2.8%
|
0.8%
|
2.0%
|
|
GLD, GOLD
|
5.8%
|
2.0%
|
1.8%
|
0.9%
|
1.0%
|
|
RKH, Banking
|
-2.8%
|
0.2%
|
-1.3%
|
-0.9%
|
-0.8%
|
|
IYT, Transportation
|
2.5%
|
0.5%
|
-1.8%
|
0.5%
|
3.4%
|
|
SMH, Semiconductors
|
-1.7%
|
-1.5%
|
-1.2%
|
0.4%
|
0.6%
|
|
BBH, Biotechnology
|
2.5%
|
-0.3%
|
-0.3%
|
1.1%
|
2.0%
|
|
IYR, Real Estate
|
-1.9%
|
-0.9%
|
-4.7%
|
2.4%
|
1.4%
|
|
OIH, Oil
|
14.4%
|
1.2%
|
2.3%
|
1.5%
|
8.8%
|
|
XLE,
Energy
|
10.6%
|
3.7%
|
1.7%
|
0.4%
|
4.5%
|
|
XLU,
Utilities
|
-0.9%
|
-0.5%
|
-1.1%
|
1.5%
|
-0.7%
|
|
XLB,
Materials
|
3.5%
|
1.0%
|
-0.2%
|
-0.5%
|
3.1%
|
|
XLI,
Industrial
|
0.8%
|
0.8%
|
-1.6%
|
0.0%
|
1.6%
|
|
XLK,
Technology
|
-1.1%
|
-1.7%
|
0.5%
|
0.4%
|
-0.3%
|
|
XLV,
Healthcare
|
0.8%
|
0.6%
|
-0.6%
|
1.1%
|
-0.3%
|
|
XLF,
Financials
|
-2.2%
|
0.2%
|
-1.0%
|
-0.7%
|
-0.7%
|
|
XLP,
Consumer Staples
|
-1.2%
|
-0.3%
|
-1.4%
|
0.9%
|
-0.3%
|
|
XLY,
Consumer Discretionary
|
1.0%
|
1.0%
|
-1.5%
|
0.2%
|
1.3%
|
Key industry ETF’s are
Biotech and Semiconductors which confirm the NASDAQ. Transportation confirms
the Dow Jones Industrial Average according to Dow Theory. Banking and
Financials are confirming indicators for the S&P 500. Gold and Real Estate
are respective indicators for the inverse health of the currency and the
economy in general.
3.0 Procedure
The following watch lists contain
stock candidates for consideration. They are not necessarily trades.
Categories include check lists for insider buying and cash rich companies, as
well as, those that employ stock picking methods of six important master
traders.
Some of the watch lists
are growing without bound, making selections difficult. Eventually it is no
longer helpful to have too many choices. It was decided to limit the number of
entries to 10 per category. First we attempted to eliminate stocks that were
not optionable if there were at least 10 remaining. Next, we ranked them
according to their past month’s performance and chose the top 10. They may not
necessarily be ones that have increased the most since we began monitoring
them. We continue to monitor stocks that do not rank in the top 10 as long as
they meet price requirements described below. They may subsequently replace
some of those currently listed.
The “Reference” is the date
that a stock passed the indicated filter and was added to or returned to the
list. The “% Change” is how the price has changed since the reference date. Stocks
that are down 10% or more after being listed are removed. The “% from Max” is
the percentage the price has declined from the maximum price reached since the
reference date. Stocks that are down 8% from their highs after being listed
are flagged in yellow. Stocks that are down 15% from their highs after being
listed are removed. More information on filters is available on the web site.
A performance summary of
filtering techniques for check lists and master trader selection methods is
given in Table 3A.
Table 3A
Stock Filter Summary
|
Filter
|
Avg. % Change Since Listed
|
Avg. % Change Friday
|
1 Month
|
1 Week Ago
|
2 weeks Ago
|
3 Weeks Ago
|
4 Weeks Ago
|
|
Net Insider Buying
|
12.3%
|
-1.4%
|
12.2%
|
-0.2%
|
4.3%
|
3.7%
|
4.1%
|
|
Cash Rich Companies
|
-0.4%
|
-0.8%
|
-5.7%
|
-2.4%
|
-2.5%
|
1.1%
|
-2.0%
|
|
Growth Momentum Stocks
|
7.7%
|
-2.6%
|
0.1%
|
-2.7%
|
0.8%
|
1.9%
|
0.3%
|
|
Lynch Stocks
|
8.9%
|
-1.1%
|
3.8%
|
0.5%
|
-0.1%
|
2.0%
|
1.4%
|
|
Buffett Stocks
|
15.7%
|
-1.2%
|
0.5%
|
-2.4%
|
-1.2%
|
3.0%
|
1.2%
|
|
Graham Stocks
|
10.3%
|
-1.6%
|
0.7%
|
-1.1%
|
1.1%
|
0.7%
|
-0.1%
|
|
Templeton Stocks
|
6.7%
|
-1.3%
|
1.2%
|
-2.5%
|
0.7%
|
1.4%
|
1.7%
|
|
Zweig Stocks
|
8.3%
|
-2.6%
|
3.5%
|
-2.4%
|
2.5%
|
2.9%
|
0.4%
|
|
Average
|
8.7%
|
-1.6%
|
2.0%
|
-1.7%
|
0.7%
|
2.1%
|
0.9%
|
Key
Companies that have
experienced net insider buying within the past 6 months of 5% or more of issued
stock are listed in Table 3B. These stocks should also appear in one of the master
trader screens or meet additional screening criteria before being given serious
consideration. This list is a mixture of stocks that are optionable and those
that are not.
Table 3B
Net Insider Buying Check List
Best 10 for the Month
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
RGN
|
07/01/05
|
15.9%
|
RegeneRx
Biopharmaceut.
|
Health
Care
|
Biotechnology
& Drugs
|
-2.2%
|
|
AUXL
|
08/12/05
|
0.0%
|
Auxilium
Pharmaceuticals, Inc.
|
Health
Care
|
Biotechnology
& Drugs
|
0.0%
|
|
ETC
|
08/12/05
|
0.0%
|
Environmental
Tectonics Corporation
|
Technology
|
Scientific
& Technical Instruments
|
0.0%
|
|
STLW
|
07/08/05
|
-0.4%
|
Stratos
International, Inc.
|
Technology
|
Semiconductors
|
-2.6%
|
|
KIRK
|
05/27/05
|
-1.5%
|
Kirkland's, Inc.
|
Services
|
Retail
(Specialty Non-Apparel)
|
-5.9%
|
|
IRN
|
08/05/05
|
-2.3%
|
Rewards
Network Inc.
|
Services
|
Business
Services
|
-2.6%
|
|
ASPV
|
05/27/05
|
19.3%
|
Aspreva
Pharmaceuticals Corporation
|
Health
Care
|
Biotechnology
& Drugs
|
-3.0%
|
|
ZHNE
|
07/15/05
|
2.9%
|
Zhone
Technologies, Inc.
|
Technology
|
Communications
Equipment
|
-13.1%
|
|
PCTY
|
07/08/05
|
0.5%
|
Party City
Corporation
|
Services
|
Retail
(Specialty Non-Apparel)
|
-8.0%
|
|
ATPL
|
07/01/05
|
2.7%
|
Atlantis
Plastics, Inc.
|
Basic
Materials
|
Fabricated
Plastic & Rubber
|
-7.6%
|
Companies with net cash
positions that comprise at least 40% of their share price are listed in Table 3C.
These stocks should also appear in one of the master trader screens or meet
additional screening criteria before being given serious consideration. Again
this list is a mixture of stocks that are optionable and those that are not.
Table 3C
Capital Rich Companies Check List
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
CDCO
|
08/12/05
|
0.0%
|
COMDISCO
HLDG CO INC
|
Services
|
Rental
& Leasing
|
0.0%
|
|
TIWI
|
07/29/05
|
1.4%
|
Telesystem
International Wireless (USA)
|
Services
|
Communications
Services
|
0.0%
|
|
KEYN
|
05/13/05
|
26.1%
|
Keynote
Systems, Inc.
|
Technology
|
Computer
Services
|
-3.7%
|
|
WSC
|
07/01/05
|
-2.1%
|
Wesco
Financial Corporation
|
Conglomerates
|
Conglomerates
|
-2.1%
|
|
CLCT
|
05/20/05
|
-8.3%
|
Collectors
Universe, Inc.
|
Services
|
Business
Services
|
-14.1%
|
|
HWG
|
06/03/05
|
4.6%
|
The
Hallwood Group Incorporated
|
Consumer
Cyclical
|
Textiles -
Non-Apparel
|
-13.7%
|
|
HRAY
|
08/12/05
|
0.0%
|
Hurray!
Holding Co., Ltd. (ADR)
|
Services
|
Communications
Services
|
0.0%
|
For the screen in
Table 3D, the number of selections is reduced by selecting only optionable
stocks having P/E’s less than 30.
Table 3D
Growth Momentum Watch List
Best 10 for the Month
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
SFY
|
04/22/05
|
66.7%
|
Swift
Energy Company
|
Energy
|
Oil &
Gas Operations
|
-0.5%
|
|
EXP
|
07/29/05
|
4.4%
|
Eagle
Materials, Inc.
|
Capital
Goods
|
Construction
- Raw Materials
|
-0.9%
|
|
SYT
|
04/08/05
|
3.9%
|
Syngenta
AG (ADR)
|
Basic
Materials
|
Chemical
Manufacturing
|
-0.8%
|
|
TDY
|
04/29/05
|
19.7%
|
Teledyne
Technologies Incorporated
|
Services
|
Business
Services
|
-6.6%
|
|
UNH
|
04/15/05
|
11.7%
|
UnitedHealth
Group Inc.
|
Financial
|
Insurance
(Accident & Health)
|
-2.6%
|
|
OSK
|
03/12/05
|
7.2%
|
Oshkosh
Truck Corporation
|
Consumer
Cyclical
|
Auto &
Truck Manufacturers
|
-1.4%
|
|
ADVNB
|
05/20/05
|
17.5%
|
Advanta
Corp.
|
Financial
|
Consumer
Financial Services
|
-4.4%
|
|
LM
|
08/12/05
|
0.0%
|
Legg
Mason, Inc.
|
Financial
|
Investment
Services
|
0.0%
|
|
BDK
|
04/29/05
|
5.1%
|
The Black
& Decker Corporation
|
Consumer
Cyclical
|
Appliances
& Tools
|
-5.4%
|
|
CHE
|
05/06/05
|
4.3%
|
Chemed
Corporation
|
Services
|
Business
Services
|
-9.8%
|
For the Peter Lynch screen
in Table 3E, the number of selections is reduced by selecting only optionable
stocks having P/E’s less than 30.
Table 3E
Peter Lynch Value Watch List
Best 10 for the Month
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
CHL
|
03/18/05
|
32.9%
|
China Mobile (Hong Kong) Limited (ADR)
|
Services
|
Communications
Services
|
-2.0%
|
|
PKX
|
04/29/05
|
18.0%
|
POSCO
(ADR)
|
Basic
Materials
|
Iron &
Steel
|
0.0%
|
|
BTI
|
08/12/05
|
0.0%
|
British
American Tobacco (ADR)
|
Consumer
Non-Cyclical
|
Tobacco
|
0.0%
|
|
TM
|
12/13/04
|
6.7%
|
Toyota
Motor Corporation (ADR)
|
Consumer
Cyclical
|
Auto &
Truck Manufacturers
|
-2.3%
|
|
VLCCF
|
06/03/05
|
13.0%
|
Knightsbridge
Tankers Limited
|
Transportation
|
Water
Transportation
|
-1.5%
|
|
ASH
|
07/29/05
|
1.7%
|
Ashland
Inc.
|
Capital
Goods
|
Construction
Services
|
0.0%
|
|
SKM
|
02/07/05
|
5.5%
|
SK Telecom
Co., Ltd. (ADR)
|
Services
|
Communications
Services
|
-3.1%
|
|
RD
|
04/29/05
|
11.9%
|
Royal
Dutch Petroleum Co.
|
Services
|
Printing
& Publishing
|
-2.8%
|
|
NTE
|
05/06/05
|
12.1%
|
Nam Tai
Electronics, Inc.
|
Technology
|
Electronic
Instruments & Controls
|
-10.0%
|
|
TMX
|
06/03/05
|
3.8%
|
Telefonos
de Mexico, S.A. (ADR)
|
Services
|
Communications
Services
|
-4.0%
|
The filter for Warren
Buffet style stock picking in Table 3F is for the intermediate to long term.
Two requirements were added. One was to include only optionable stocks in
order to find LEAPS opportunities. The other requirement was to include only
those stocks having a PE of 17 or less.
Table 3F
Warren Buffett Value Watch List
Best 10 for the Month
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
RS
|
04/15/05
|
27.5%
|
Reliance
Steel & Aluminum
|
Basic
Materials
|
Misc.
Fabricated Products
|
-0.7%
|
|
STLD
|
05/20/05
|
24.2%
|
Steel
Dynamics, Inc.
|
Basic
Materials
|
Iron &
Steel
|
-0.4%
|
|
NUE
|
04/15/05
|
19.2%
|
Nucor Corporation
|
Basic
Materials
|
Iron &
Steel
|
-0.6%
|
|
TSCO
|
04/22/05
|
31.4%
|
Tractor
Supply Company
|
Services
|
Retail
(Home Improvement)
|
-6.9%
|
|
LNCR
|
12/27/04
|
4.2%
|
Lincare
Holdings Inc.
|
Health
Care
|
Healthcare
Facilities
|
-4.5%
|
|
TLK
|
04/29/05
|
21.4%
|
PT
Telekomunikasi Indonesia (ADR)
|
Services
|
Communications
Services
|
-7.5%
|
|
FNF
|
07/29/05
|
-1.5%
|
Fidelity
National Financial
|
Financial
|
Insurance
(Property & Casualty)
|
-1.7%
|
|
DSPG
|
02/07/05
|
2.7%
|
DSP Group,
Inc.
|
Technology
|
Communications
Equipment
|
-3.3%
|
|
ABFS
|
04/29/05
|
9.4%
|
Arkansas
Best Corporation
|
Transportation
|
Trucking
|
-5.1%
|
|
CACH
|
04/29/05
|
51.9%
|
Cache,
Inc.
|
Services
|
Retail
(Apparel)
|
-7.9%
|
Stocks from Benjamin
Graham’s style of utility investing are listed in Table 3G. A requirement was
added to include only those stocks having a PE of 17 or less.
Table 3G
Benjamin Graham Utility Watch List
Best 10 for the Month
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
KEP
|
01/10/05
|
43.0%
|
Korea
Electric Power Corporation (ADR)
|
Utilities
|
Electric
Utilities
|
-3.6%
|
|
UU
|
06/10/05
|
-3.5%
|
United
Utilities PLC (ADR)
|
Utilities
|
Electric
Utilities
|
-4.3%
|
|
ATO
|
04/01/05
|
9.4%
|
Atmos
Energy Corporation
|
Utilities
|
Natural
Gas Utilities
|
-1.0%
|
|
WPS
|
02/07/05
|
12.4%
|
WPS
Resources Corp
|
Utilities
|
Electric
Utilities
|
-2.4%
|
|
CEG
|
04/29/05
|
10.8%
|
Constellation
Energy Group
|
Utilities
|
Electric
Utilities
|
-5.2%
|
|
OKE
|
04/15/05
|
16.2%
|
ONEOK,
Inc.
|
Utilities
|
Natural
Gas Utilities
|
-6.7%
|
|
NFG
|
04/08/05
|
2.8%
|
National
Fuel Gas Co.
|
Utilities
|
Natural
Gas Utilities
|
-3.5%
|
|
SRE
|
01/10/05
|
16.6%
|
Sempra
Energy
|
Utilities
|
Natural
Gas Utilities
|
-2.4%
|
|
SJI
|
07/01/05
|
-4.5%
|
South
Jersey Industries
|
Utilities
|
Natural
Gas Utilities
|
-8.2%
|
|
PNW
|
01/10/05
|
3.2%
|
Pinnacle
West Capital
|
Utilities
|
Electric
Utilities
|
-4.1%
|
Optionable stocks from John Templeton’s style of
investing are listed in Table 3H.
Table 3H
John Templeton Watch List
Best 10 for the Month
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
WMAR
|
05/27/05
|
21.1%
|
West
Marine, Inc.
|
Services
|
Retail
(Specialty Non-Apparel)
|
-4.8%
|
|
CPS
|
05/27/05
|
8.4%
|
ChoicePoint
Inc.
|
Services
|
Business
Services
|
-0.6%
|
|
SFG
|
05/27/05
|
10.5%
|
StanCorp
Financial Group, Inc.
|
Financial
|
Insurance
(Life)
|
-6.9%
|
|
MBT
|
06/17/05
|
10.0%
|
Mobile
TeleSystems OJSC (ADR)
|
Services
|
Communications
Services
|
-5.3%
|
|
EASI
|
06/03/05
|
2.6%
|
Engineered
Support System
|
Capital
Goods
|
Misc.
Capital Goods
|
-5.4%
|
|
WSM
|
05/27/05
|
9.8%
|
Williams-Sonoma,
Inc.
|
Services
|
Retail
(Specialty Non-Apparel)
|
-4.3%
|
|
AMSG
|
08/12/05
|
0.0%
|
AmSurg
Corp.
|
Health
Care
|
Healthcare
Facilities
|
0.0%
|
|
MTB
|
05/27/05
|
5.5%
|
M&T
Bank Corporation
|
Financial
|
Regional
Banks
|
-3.2%
|
|
BBBY
|
06/24/05
|
7.5%
|
Bed Bath
& Beyond Inc.
|
Services
|
Retail
(Specialty Non-Apparel)
|
-5.4%
|
|
JNJ
|
05/27/05
|
-5.7%
|
Johnson
& Johnson
|
Health
Care
|
Major
Drugs
|
-5.7%
|
Optionable stocks from
Martin Zweig’s style of investing are listed in Table 3I.
Table 3I
Martin Zweig Watch List
Best 10 for the Month
|
Stock
|
Reference
|
% Chg
|
Company
|
Sector
|
Industry
|
% from Max
|
|
CERS
|
08/05/05
|
0.4%
|
Cerus
Corporation
|
Health
Care
|
Biotechnology
& Drugs
|
-6.9%
|
|
SFY
|
08/12/05
|
0.0%
|
Swift
Energy Company
|
Energy
|
Oil &
Gas Operations
|
0.0%
|
|
BR
|
07/29/05
|
6.1%
|
Burlington
Resources Inc.
|
Energy
|
Oil &
Gas Operations
|
0.0%
|
|
PKZ
|
07/01/05
|
14.6%
|
PetroKazakhstan
Inc. (USA)
|
Energy
|
Oil Well
Services & Equipment
|
-3.8%
|
|
EXP
|
05/27/05
|
18.4%
|
Eagle
Materials, Inc.
|
Capital
Goods
|
Construction
- Raw Materials
|
-0.9%
|
|
APA
|
05/27/05
|
22.4%
|
Apache
Corporation
|
Energy
|
Oil &
Gas Operations
|
0.0%
|
|
SM
|
08/05/05
|
3.4%
|
St. Mary
Land & Exploration Co.
|
Energy
|
Oil &
Gas Operations
|
0.0%
|
|
RESP
|
06/03/05
|
12.9%
|
Respironics,
Inc.
|
Health
Care
|
Medical
Equipment & Supplies
|
0.0%
|
|
ZQK
|
05/27/05
|
5.4%
|
Quiksilver,
Inc.
|
Consumer
Cyclical
|
Apparel/Accessories
|
-1.6%
|
|
AMSG
|
07/29/05
|
-0.9%
|
AmSurg
Corp.
|
Health
Care
|
Healthcare
Facilities
|
-2.6%
|
4.0
Trading Results
This section highlights
performance of stocks and options trades. Only a summary is provided here to
save space. Detailed lists of closed trades can be found on the portfolio page of the
website.
Option Trading Model
|
Options Trading Model
|
|
Number of trades in 2005 =
|
53
|
(1.6
Trades per Week)
|
|
Number of contracts per trade =
|
2
|
|
|
Avg. Premium Cost per trade =
|
$1,411.25
|
|
|
Total Premium costs =
|
$74,796.00
|
|
|
Gross Profit =
|
$8,984.37
|
(12.0%)
|
|
Broker Commission (Etrade) =
|
-$1,323.94
|
|
|
Subscription Cost to date =
|
-$480.00
|
(at
$60.00/month)
|
|
Net Profit After Expenses =
|
$7,180.43
|
(Avg.
holding period 8.1 days)
|
Stock Trading Model
|
Stock Trading Model ($10,000
Initial Capital)
|
|
No. of Closed trades in 2005 =
|
41
|
(1.2 Trades per Week)
|
|
Average Trade Size =
|
$1,000.00
|
|
|
Total Share costs =
|
$41,000.00
|
|
|
Gross Profit on Closed Positions =
|
$1,401.59
|
|
|
Profit on Open Positions =
|
$687.18
|
|
|
Broker Commission (Etrade) =
|
-$899.10
|
|
|
Subscription Cost to date =
|
-$80.00
|
|
|
Net Profit After Expenses =
|
$1,109.66
|
(11.1%)
|
5.0 Conclusion
Performance since the
beginning of 2005 based on approximately 10% of capital per trade:
Growth in Total Capital
|
Stock
Advisory
|
+11.1%
|
|
Options
Advisory
|
+64.0%
|
|
Major Indices Year to Date
8/13/05
|
|
DOW
|
-1.7%
|
|
NASDAQ
|
-0.9%
|
|
S&P500
|
+1.5%
|
|
Russell
2000
|
+1.3%
|
Appendix
Investment Conference Schedule
Below are links to
conference registration sites where you can sign up.
- 09-07-05 Las Vegas, Nevada "Gold and Precious Metals Investment Conference"
The gold and
metal resource market has demonstrated its strength and longevity,
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bull market, with Natural Resources the clear profit leaders.
- 09-29-05 Las Vegas, Nevada "Tradestation World
Users Conference" Trade Station World Conference and Expo, the premier
conference for TradeStation users, is coming to the Venetian Hotel in Las
Vegas, September 29 - October 2, 2005. Here's where you learn about how to
design your personal trading strategies, and to test those strategies
against historical data.
- 10-02-05 Toronto, Ontario "Toronto Resource Investment Conference"
- 10-30-05 New Orleans, LA "New Orleans Investment Conference"
- 11-10-05 Millbrae, CA "Biotech Investing
Conference" Continuing advances in genomics, proteomics and
enabling technologies makes the Biotech sector a favorite among private
equity investors and venture capitalists. The Biotech Investing Conference
is an industry gathering of the leading private equity investors, venture
capitalists, biotech companies, pharmaceutical companies, corporate investors
and institutional investors.
- 11-27-05 San Francisco, CA "Gold and Precious Metals Conference"
Both
professional and sophisticated private investors meet with the world's
leaders in gold, silver, precious metals, copper and oil and gas
exploration and production. The Natural Resource industry's newest
opportunities are presented, together with educational seminars, executive
panels and investment workshops led by top finance specialists, economic
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pre-registration.
Conference Search