September 9th, 2012

GOLDMAN!

So I haven't had many positions since my last update. I picked up some last minute calls of $GS and just waited and watched! It moved slow but I am so glad I was patient.

I had about 40 $115 September Calls, it was finally "in the money" on Wednesday as it got closer and closer to the 115 price. By Friday this was about a $5,000 trade. Happy Birthday to me!

I've been researching all weekend for some new positions. Check my twitter for my most up to date trades. www.twitter.com/TheBritReport

Thanks!
Brit

August 25th, 2012

Hello!

I'm back! I finished my internship about two weeks ago so I've been spending the last couple of weeks preparing for school. Since my last post I've made a few trades. I will be getting back into the swing of things on monday.

Google
On top of Goldman I dipped back into Google buying a September $705 call for 1.85 selling it at $3.60 realizing a $365 gain.

Goldman
I'm still heavy in Goldman. I've bought about 10 more 115 September calls looking to see some upward movement this week. The stock has climbed since my original buy but still not enough.


Got excess refund?

Earlier this week I tweeted about investing your refund check. I'm not financial planner but I will share that right now interest rates are low. You will barely get any money back placing excess funds into CD or savings account. I would consider an options account. Read up on stocks you like, practice paper/virtual trading and if you have questions tweet me! Options accounts usually just charge a commission and it's a better than just letting your money sit.

Be sure to follow me on twitter for my most up to date trade info @TheBritReport

August 10th, 2012

Hello all!

Let's get to the money!

Ten Year Note

FINALLY the TYU turned in my favor. I had 6 short positions since about the end of July for September expiration. I had an average of 134'410 and liquidated at 133'175.

Here's are the calculation for profit for a short position

Sold Price     Bought      Tics      Tic Value     Profit
134'000     -  133'175 =   17.5  x      31.25    = $546.875
133'270     -  133'175 =   9.5    x      31.25    = $296.875
134'110     -  133'175 =   25.5  x      31.25    = $796.875
135'025     -  133'175 =   49     x      31.25    = $1531.25 * 3 = $4593.75
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Gross Profit                                                                              $6,234.375

AWESOME!

At one point this looked like a loser but I held out and didn't let my emotions take over and now it's $6,200 winner. If you've been following my TYU calls... you're welcome =)

Goldman Sachs

Currently, I have 25 Goldman Sachs (GS) 115 September Calls. I have been extremely bullish. As I stated on twitter a couple weeks ago it only takes some good news to have it shoot up. I am hoping that the news about Goldman not having legal liabilites regarding the subprime mortgages gives the stock a boost today. I need a rally in GS NOW.

 

That's all for now!

Brit

August 2 2012

Blog

Hello all!

I've been having some serious technical difficulties! Sorry I've been MIA I'm updating via phone so I'm gunna keep it short!

Apple

Last week I bought one 670 apple call. I bought it before they came out with earnings unfortunately they missed their earnings! The stock dropped 30 bucks after hours. I am still holding the option... It has about 10 days to expire, since earnings it bounced back from its loss and hope it keeps climbing.

Google
Google was really a winner last week. I bought two 650 calls... There was some resistance at the 615 level but once it broke through that level it was all support! I got out of it Friday with a $550.00 profit. Remember never lose taking a profit.

What is market resistance?

The price at which a stock or market can trade, but not exceed, for a certain period yof time. - investopedia

Basically consider it like a ceiling every time a stock gets to a certain level it has trouble going past it. (resistance level) once it passes that level it climbs! Now it's trading at about $628

What is market support?
The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock. - investopedia

This is kind of like the floor.

You can analyze charts to see previous trendlines of support or resistance and make decisions based on your findings... This one was a freebie :)

Monday I bought 6 $115 September Goldman Sachs calls. GS moves slower and has a little bad press but all it takes is some good news for the price to go up.

That's all I have for now !

Brit

July 16th 2012

Hello!

I am going to keep this post short and sweet.

After my last post I bought another Gold at 1564.90 which brought my average price to 1573.40 ((1578+1564.90+1577.40)/3)

On Friday before I boarded my flight gold was at $1584.10 (up $10.70 from average price), I decided to take a profit. Although gold kept climbing throughout my flight I am happy with my decision to liquidate. It is a terrible feeling to stay in a position too long and pass up the opportunity to gain. You always win taking a profit. Here's how I can calculate the gains from this transaction:

(Settle price-purchase price) x tick yield = Profit
You would want to do this for every position

1584.10-1578 = 6.1 x 100 = $610


1584.10-1577.40= 6.70 x 100 = $670


1584.10-1564.90= 19.2 x 100 = $1920
__________________________________
Total Profit                          $3200.00


If you followed this pick you are $3200 richer! Not bad for a weeks work.

Remember when you BUY (long) a position you think the market is going to go up. When you SELL (sell) a position you think the market is going to go down. The person who sold me these three positions thought the price of gold was going to decrease. I thought it was going to increase, I was correct and sold them at profit to someone else who thought the market was going to go even higher.

That's all!

Brit

July 11th, 2012

Hello everyone!

I just want to update you on my positions! Also give more information regarding some of the terminology. I realize some of it may be a little confusing so I am going to post a brief explanation of tick values! As the quarter comes to a close companies will begin releasing their earnings. This information can help you gain an edge, the further out you make a position the better.

 Let’s get started.

Gold:

I bought another gold contract at 1578, bringing my average price to 1,577.70. 

Crude Oil:

On Friday I faced a 2,087 loss after liquidating crude. The same day I reestablished that position going long at $84.59. Today crude rallied and sold both of my contracts at $85.60.  Therefore after that position my loss went from $2,087 to $67.00. If I would of stayed in a little longer I would have realized a profit. I will continue to wait for another dip and probably up my number of contracts. ($67 loser)

Ten Year Note:

I have 3 contracts short at 134’00 in the ten year note. My original plan was to buy them back closer to the time of purchase but I decided to change my plan of action and treat this more of an investment. (loser for now)

I still have positions in GOOG and AAPL, although they have dropped since Monday I definitely think GOOG is a buy.

Calculating a loss or gain from tick value.

Each futures contract has a minimum price increment called tick size. For example crude oil has a tick size of $.01 this basically means that crude moves in one-cent increments you won’t see it moving  $.011. Information about tick size can be found at the www.cmegroup.com pick a contract and click contract specifications. You will also need the contract size, which is the number of units in the contract.

How to calculate dollar value of each tick:

Dollar value per tick = contract size * tick size

Therefore, the dollar value per tick for crude is: 1,000 (barrels) *.01= $10.00, meaning for every cent that crude moves it is either a $10.00 profit or loss.

Let’s apply this example to real life. 

You buy crude oil at $82.30 about an hour later crude is UP at $85.30.

In this example the change is $3.00, which is 300 cents (or ticks), you would multiply 300*10 and you would have a profit of $3,000.00.

That’s all for now  

July 6th,2012

The estimates for the non-farm payroll were lower than anticipated and unemployment remained at 8.2%... the markets reacted accordingly the Dow closing under 124 points. Let’s go through the days positions.

Crude Oil- 

I liquidated crude at 84.40 with a 2,087 loss but after some additional research I reestablished the position. I bought 2 contracts in the crude oil, the first at 84.65 and the second at 84.52 which brings me to an average price of 84.59. Adding to a position allows you to enter at different levels as opposed to one price. If crude is dipping I would suggest a buy!

Apple- 

 I added to my apple position buying more $625 calls at 11:08 am when the stock was trading at 603.83 settling at 606.25, which gives me a total of two positions in Apple. This is an approximately a $1,500 winner.  I am going to review some charts this week.

Google

I decided to buy some Google positions in addition to Apple. I bought the $625 calls when the stock was trading at 584.83; this was also a $625 call.

Ten Year Note- Loser

Oh the ten year. I decided to add to my ten year position, I’ve have three contracts short at 134’00, currently is 1,406 loser. Even though this is currently a losing position and a lot of people would suggest against adding to a losing position. I am confident in my decision.

Gold- The Winner!

I bought gold at 1577.40 settling at 1578.90, for every dime gold moves it has a $10.00 tick value therefore this is a $1,500 winner. Are you with me? Ended the day a happy girl! Even though I lost money in crude I definitely reestablished myself with this position.

Google and Apple are both promising companies. It’s important to remember that prices are based on the future of a company, a lot of the information we are receiving now has already been factored into the market. I think an important tip if you are interested in trading is looking for an edge in the market. You want to be able to see various cause and effect patterns and factor those into your decision.

For example the news of a new iPhone being released will not have a profound effect on the price, Apple releases a new iPhone every year that’s not an edge. However, finding out that Apple has ordered parts to start making televisions is an edge that will effect the market.  Keep this in mind when you are considering the direction of a market or investing in different stocks.

I’ve been getting some questions about getting started with trading, I think paper trading is a very good way to begin to understand the markets. Sign up for a virtual trading account to get familiar with the terminology and understanding your decisions without risking anything. Also studying charts helps, cross-referencing charts and events for the company will help you understand the future of the company.

Friday was definitely a tough market but I am comfortable with my positions. Earnings will be released soon I will have some thoughts at that later this week. I have attached screen shots of my calls for proof… Be sure to follow me on twitter @TheBritReport for the most up to date positions.

That’s all for today!

Brit