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The MET insurance policy, I'm going to start
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Friday, August 17, 2012 9:00:22 PM
The MET insurance policy, I'm going to start a thread and sticky it. The criteria is plain and simple, when the Dow Jones Industrial Average is -100 points or more, pick an entry point and buy 50 shares of MET. I am also going to randomly play the option contracts.
Our original start up capital was $1649.75 for 50 shares plus 5 call contracts on July 10th.
After trade 1 - $1722.20
after trade 2 - $1733.70
after trade 3 - $1829.60
after trade 4 - $1933.00
after trade 5 - $1797.25
close enough. I'm buying 5 $35.00 call contracts at the ask of .26
Bought 5 $31 Aug call contracts of MET at .26 on Aug 13.
5*$26=$130.00 + 5.75 comm = $135.75 total cost
Yours truly could have sold these the next day at the bid of .47-the hod was .50. Unfortunately, greed got in the way and I held for bigger gains. These options were monthly options that expired on the 3d Friday of the month worthless. The 10 min chart is at the bottom of this post. I do wish I held the Sep calls instead.
Bought 50 shares of MET at 30.74 on Aug 2
50*30.74=1537.00 + 7.00 comm = 1544.00 total cost
Sold 50 shares of MET at 33.10
50*33.10=1655.00 - 7.00 comm = 1648.00
The market dipped hard at the open and MET blew away earnings the night before. This was an easy decision. In real life, I also bought some $31 Aug calls at .79 and sold them at 1.58 later in the morning. I didn't have time to make that trade for this, or it would have been a much larger gain. If I can't keep this honest, it isn't worth doing.
Bought 50 shares of MET on July 24th for 28.52.
50*28.52= 1426.00+7.00=$1433.00 cost
sold 50 shares on July 26 for 29.41.
50*29.41= 1470.50 - 7.00 = $1463.50
$1463.50 - $1433.00 = $30.50 profit
bought 2 $29 Aug call contracts for .75
2*75.00= 150.00 + 5.30 comm = 155.30 cost
sold 2 contracts for 1.13
2 * 113.00 = 226.00 - 5.30 comm = 220.70
220.70 - 155.30 = $65.40 profit.
Quote: (7/23)- bought 50 shares at 28.55 = 1427.50 + 7.00 comm = 1434.50
sold 50 shares at 29.06 = 1453.00 - 7.00 = 1446.00
1446.00 - 1434.50 = $11.50 profit
I sold because I felt the pps needed to consolidate a little before reversing.
50 shares at 30.04 = 1502.00 + 7.00 comm. = $1509.00 cost and 50 shares of MET.
I'm going to take it one step further. I'm also going to add the next 1.00 increment monthly option in this equation. 5 contracts at a time. The $31 July calls for MET are at .27 on the ask. We are buying 5 contracts at .27 = $135.00 + comm $5 +.15 per contract (choice trades rates)= $140.75 cost and 5 contracts
Sold these positions on 7/19
50 shares * 31.19 = 1559.50 - 7.00 commission = 1552.50 cash
5 call contracts * .35 per = 175.00 - 5.30 commission = 169.70 cash
BALANCE = 1722.20 (+72.45) We will now wait for the dow to tank -100 points and do it again.
Is it wrong to be a little bit bearish?
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