Friday, November 14, 2014

Trading summary: greasy computers

The last couple days have not presented me with any opportunities except perhaps for today's trade.  I chose to be super conservative so my strikes are low and my risk/reward is right on the bottom of my acceptable limit.

Today's moves: XOP - SPDR S&P Oil & Gas Explore & Prod. (ETF)
It's oil, and it's liquid. (Both the product, and the trading).

MSFT - Microsoft.  85% chance you're using it's products right now.

Here's the brick:
So here's the breakdown:
5 contracts XOP JAN 16, 2015
Max profit $156.49
Max loss (1000-156.49) $843.51
Days to expiry:63
Projected annualized gain for worthless expiry: 39%

5 contracts MSFT FEB 20, 2015
Max profit $222.10
Max loss (2500-222.10) $2277.90
Days to expiry:98
Projected annualized gain for worthless expiry: 36%

In other news, since I'm not using all my money all the time, I don't get annualized returns like my past few trades all the time.  That said, so far so good.  I've been averaging 35% annualized returns for the past 3.5 months my new account has been open with Interactive Brokers.  Most of my moves are 3-6months out though, so this number should increase a little over time.

I'll post more charts in the future as right now, a 3 month chart with only 3 data points isn't all that useful for hammering home my point: You most certainly CAN beat the index!  And with hardly any time, or huge amounts of money to push around.

Stay HUNGRY my friends!

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