World's Worst Stock Picker

ESI

World Worst Stock Picker — Thu, 01 Oct 2009 13:02:00 GMT

I got an education stock pick for you: ESI.

I will buy on my paper account a 100 shares and sell the 115 October call against it. I chose the 115 as an area of resistance on the six month chart. We will set the stop at 92.

I have been so busy lately because I am trying to go back to school. I am trying to get admitted to a finance Ph.D. program. I am planning to apply to approximately 7 or 8 schools. I am currently enrolled in an intermediate microeconomics class to embellish my application, studying for the GMAT, and teaching online. Then I have like 7 paper accounts that I monitor and test different ideas on stock and options trading. I am swamped. The saga continues.

Two to Three Trades for Today. Part 7

World Worst Stock Picker — Fri, 25 Sep 2009 12:59:00 GMT

RHT gapped up yesterday. I expect that the gap will be restested. I have a short call that is losing money against the stock position. My protocol is to wait until the expiration week to see where the stock will head to. Must likely I will let the position get assigned of the price is way over 25.

QSII part Deux

World Worst Stock Picker — Fri, 25 Sep 2009 12:51:00 GMT

I will be moving the trailing stop to 58.125. The stock was recommended around 53 and yesterday closed at 61.69. Not bad at all. The King Diamond system is working better than expected. It is supposed to work that way I backtested the Bejesus out of it. Just because my handle is the World's Worst Stock Picker does not mean I trade like one. Now there are people that are much better traders than me such as Obama.

AONE

World Worst Stock Picker — Thu, 24 Sep 2009 13:07:00 GMT

Hello my minions, I was surfing the web and found this IPO that is coming out today. I will add to my watch list and hopefully if the conditions are good I will be able to buy it. The ticker symbol is AONE. They develop batteries for hybrid cars and was recently awarded some loans from the US Gestapo ahem government for research and development.

For more info click here.

Boosting Return by using Covered Calls

World Worst Stock Picker — Thu, 03 Sep 2009 12:52:00 GMT

I use calls when entering positions as a psychological tool to remove stress. By using hedging, I reduce the anxiety of being wrong. In addition, I seek to boost returns. Below are two recent examples of trades that benefited from this strategy:

Hansen: Gain from the stock alone = 458.85. Gain with calls=609.03

HANSEN NATURAL CORPORATION
08/27/2009	S	Sell	HANS - HANSEN NATURAL CORPORATION	300	$32.25	$14.95	$9,659.80
07/31/2009	S	Buy	HANS - HANSEN NATURAL CORPORATION	300	$30.62	$14.95	($9,200.95)	458.85
08/21/2009	O	BTC	.QHOHP - HANS AUG 33 Call	3	$0.20	$14.95	($74.95)
07/31/2009	O	STO	.QHOHP - HANS AUG 33 Call	3	$0.50	$14.95	$135.04	60.09
08/27/2009	O	BTC	.QHOIQ - HANS SEP 34 Call	3	$0.55	$14.95	($179.95)
08/21/2009	O	STO	.QHOIQ - HANS SEP 34 Call	3	$0.95	$14.95	$270.04	90.09
Total Realized Gain/Loss for HANS					$609.03

Panera: Gain from the stock alone = 443.82. Gain with calls=658.95.

PANERA BREAD CO
08/27/2009	S	Sell	PNRA - PANERA BREAD CO	200	$53.60	$14.95	$10,704.77
07/14/2009	S	Buy	PNRA - PANERA BREAD CO	200	$51.23	$14.95	($10,260.95)	443.82
08/21/2009	O	BTC	.UPAHK - PNRA AUG 2009 55 C	2	$0.00	$0.00	$0.00
07/14/2009	O	STO	.UPAHK - PNRA AUG 55 Call	2	$1.20	$14.95	$225.04	225.04
08/27/2009	O	BTC	.UPAIK - PNRA SEP 55 Call	2	$1.10	$14.95	($234.95)
08/24/2009	O	STO	.UPAIK - PNRA SEP 55 Call	2	$1.20	$14.95	$225.04	-9.91
Total Realized Gain/Loss for PNRA					$658.95

Now, sometimes the strategy can eat into your profits. This situation happens when the stock moves too fast to the upside and the position gets assigned without giving the opportunity for adjustment. Right now, the short calls of CPLA are eating a little of the gain of the position. I am praying that I get the opportunity to sell next months premium to return the position to parity. Hey, nothing works a 100% of the time.

QSII

World Worst Stock Picker — Thu, 03 Sep 2009 12:25:00 GMT

My magic crystal ball also known as King Diamond trading system tells me to buy QSII at the open and sell the Sept. 55 calls against the position. Who am I to argue? The stock market is in sort of a correcting phase now so I will tell you to thread carefully. QSII has been in a consolidating phase which means that we can sell calls to generate some income for our accounts.

So the trade goes like this: Buy a 100 shares of QSII at the open and sell the Sept. 55 calls. In addition, set the trade stop at 49.25.

Updates to open positions:

CPLA: Set the stop at 60.36
DLTR: Set the stop at 45.87
GB: Set the stop at 20.63

Two to Three Trades for Today. Part 6

World Worst Stock Picker — Fri, 21 Aug 2009 12:48:00 GMT

Today we will roll the short August 20 call to the September 22.5 call. The stop of the trade will be set at 19.36.

Panera. Part 3

World Worst Stock Picker — Fri, 21 Aug 2009 12:39:00 GMT

We will close the Panera trade by letting the short call expire worthless and selling the stock on Monday. We win on both trades.

Synergy. Part 3

World Worst Stock Picker — Fri, 21 Aug 2009 12:27:00 GMT

FDO: Close the trade on Monday by selling the stock position. The call will expire worthless.

DLTR: The stock is very close to the 45 levels. I will monitor this stock today. If the call expires worthless, I will probably sell the september 46 call. I will decide in the afternoon.

Not Your Typical Suze Orman Stock Pick - Part 7

World Worst Stock Picker — Fri, 21 Aug 2009 12:13:00 GMT

CPLA has been banging its head against the 65 level this past month. I will roll the August 60 call to the September 65 call. I will have a net debit on my account. In addition, I will tighten the stop to 58.10 from 55.00. The stock was recommended as a buy at 51.

GB part 2

World Worst Stock Picker — Fri, 21 Aug 2009 12:01:00 GMT

GB has stayed in the 21's for the past month. The trade overall is a winner because of the short 22.5 call. We will let the call expire and sell short the September 2009 22.5 call. The trade stop should be set at 20.35.

GB

World Worst Stock Picker — Tue, 28 Jul 2009 13:11:00 GMT

My lone RSS subscriber should be making a killing with my glorious stock picks. I told you in an earlier post (Apple not feeling the Effects of the Recession.) that Apple stores were really busy. The stock was around 140 at that time. Apple is at 160 as of yesterday.

I will be trading GB and selling the 22.5 August call. I will set the initial stop at 17.00.

Not Your Typical Suze Orman Stock Pick - Part 6

World Worst Stock Picker — Tue, 28 Jul 2009 12:50:00 GMT

CPLA has been performing great. However, there were some negative news about Obama's education plan would hurt private school businesses. Frankly, I do not care what that man does. I do care about adjusting my stops.

Adjust CPLA stop to 55.07 from 53.94. That is it. The King Diamond system adjusts itself by showing no emotion.

Synergy. Part 2

World Worst Stock Picker — Tue, 28 Jul 2009 12:29:00 GMT

FDO and DLTR both moved up from their initial opening position prices, thus, we can adjust our trailing stops. FDO is showing a small loss that is hedged with the short call. DLTR is showing a gain of about 10% since recommended by yours truly. We will not revise the short calls at this time.

FDO: move stop to 28.38.
DLTR: move stop to 42.50.

Panera. Part 2

World Worst Stock Picker — Tue, 28 Jul 2009 12:20:00 GMT

Panera is showing a gain. We will proceed to move the trailing stop to 50 even. We will leave the short August 55 call untouched.

Two to Three Trades for Today. Part 5

World Worst Stock Picker — Tue, 28 Jul 2009 12:14:00 GMT

We will close BK covered call at the open today with a small gain due to the premium sold from the calls. The stock by itself will be sold at a very small loss.

Two to Three Trades for Today. Part 4

World Worst Stock Picker — Wed, 22 Jul 2009 02:47:00 GMT

RHT gapped up on news that it will be added to the S&P 500. When a stock is added to an index, portfolio managers are like lemmings in lemonade: they have to buy the stock since they have to own the stock to mimic the index. Therefore, the stock benefits. We will move the stop on RHT to 18.84. The short August 20 call is in the money and I do not plan to adjust it until it is clear what RHT might do. There is some resistance around the 24 level. We will keep watching the position closely.

A Father's Day Gift. Part 2

World Worst Stock Picker — Thu, 16 Jul 2009 13:04:00 GMT

I will close this trade (BKC) for an almost break even loss at the open today. It hit my stop a couple of days ago but I deviated from my plan. The short call will basically hedge my stop loss.

Panera

World Worst Stock Picker — Tue, 14 Jul 2009 05:12:00 GMT

The system gave PNRA to be bought tomorrow and sell the August 55 call. Stop is set at 45.88.

Synergy

World Worst Stock Picker — Thu, 09 Jul 2009 12:41:00 GMT

Encarta defines synergy as “the working together of two or more people, organizations, or things, especially when the result is greater than the sum of their individual effects or capabilities.” Steven Covey also devotes some time to synergy in his book “The Seven Habits of Highly Effective People.”

Stocks sometimes tend to move in groups or in sectors. As Iwas listening to Investors Edge radio show on my way home, Gary K. mentioned that the dollar stores moved. That statement tickled my interest.

I ran the scan on the computer program that I use and voila,there they were Dollar Tree and Family Dollar Stores. Two for one is an event that seldom happens. William O’Neill does not approve buying gap ups after a stock moves 12%. These picks are risky.

We also have bullish patterns: DLTR crossed above the 50 day moving average line. In addition, both stocks had very strong volume demand yesterday.

On the bearish side: both stocks might fill the open gaps and therefore, stopping us out from our positions.

How do we play them?

FDO: Buy at the open and sell the August 32.5 calls. Place a stop at 27.38. Overhead resistance is at 35.

DLTR: Buy at the open and sell the August 45 calls. Place a stop at 38.88. Overhead resistance is at 45.