Archive for April, 2007

Daniel Kertcher Advanced Covered Calls

Finally received my home study which I WON!! I’m pretty damn lucky when it comes to winning things! I’ve been super lucky since beginning of 2006 when I won the trip to Mauritius from Hungry Jacks!!!!

Anyways, watched the first DVD – its amazing, I learnt much more about the strategy behind writing covered calls and lots of fundamental analysis skills etc. Still have another DVD to go through, but this will definitely help send me to Antarctica!!

I’m in the process of setting up an OptionXpress account so that I can do covered calls on the US market! Take care!

QBE

QBE has had a great run since 2001, more recently there was a dividend payout then the stock rallied for the past 1-2 months. Today there was a pull back to a low of $32, which has a strong level of support. There is support levels at $31.50 from 30th Jan 2006, so writing a bull put spread at this level is a great opportunity to get some free money (also some good premium)

The Trade
Sell May $31.5 Puts @ $0.515
Buy May $31.0 Puts @ $0.375

Expiry = 25/05/2007
Share/Contract = 1000
Max Profit = 0.14 (0.515-0.375)
Max Risk = 0.36[(31.5-31.0) - (0.515-0.375)]
Return on Risk = 38.88%
Breakeven = $31.36

I opened 10 contracts:
Reward for trade (excluding fees) $1,400.0
Reward for trade (including fees) $1190.6
Total Risk for trade $3,600.0

The above assumes that on 25th May 2007 QBE is trading at or above $31.50
(WPL closed today @ 32.26)

 Just a quick summary of my credit spread positions:
WPL (APR) 38/37.5: Closed @ 38.94 (this position is safe)
SGB (APR) 34/33.5: Closed @ 35.90 (this position is really safe)
OXR (APR) 3/2.75: Closed @ 3.05 (this position is safe, paid dividend and strong support levels @ $3)
QBE (MAY) 31.5/30: Closed @ 32.26 (this position is safe)

If everything goes well for the 26th April 2007, I’ll be collecting $5,690 from selling insurance premium for April (risking less than $15,000)

Antarctica Update

Received this email from Nik Halik & Peter Bland to update on the Antarctica Adventure!

===================================================

Dear Yong-Long,

Congratulations Arctic Adventurers…

Welcome on board….

This is the first of many emails for our arctic travellers who have enrolled
for an experience of a lifetime.

This will truly be an inspirational journey….

This journey will also be featured in a documentary….

    In relation to our VERY OWN, EXCLUSIVE & PRIVATE Vessel, we
wanted to provide some information for you….Our CashFlow On ICE®
vessel is a modern and comfortable research ship of the
Hydrographic Institute of St. Petersburg, Russia. Built in 1990 in
Finland, the Aleksey Maryshev´ is ideally suited to expedition
cruising. Our vessel, which has an extreme ice-strengthened
hull, built of strong steel, has a range of 70 days independent operation,
is ISM certified and a perfect ice-breaker for the polar seas.

   It is manned by an enthusiastic Russian crew of around 20, all
highly experienced in ice navigation and are recognised as experts
in polar navigation. All our onboard international expedition leaders
and lecturers are highly knowledgeable, helpful and dedicated to the
protection of the environment.

    The Aleksey Maryshev´ has a large bridge (where you are almost
always welcome) and good open deck-viewing areas. It carries
a full complement of Zodiac craft, excellent for landings and
wildlife viewing opportunities in otherwise inaccessible areas.

   3-Star meals, prepared by international chefs, are served in the
dining room, which also acts as our lecture room. Other public areas
include a lounge and bar, small library, infirmary, and sauna.

The CashFlow On ICE® Experience:

-Multiple Mind & Wealth Prosperity Presentations
-onboard the Aleksey Maryshev’ including topics such as: Business,
-Internet, Property, Stock Market and Direct Selling
-Mind & Leadership Activities – on the Antarctic Peninsula during the 11 days

ADDITONAL NEVER RELEASED HOMESTUDY EDUCATIONS….

-CashFlow Science® – BONUS Home Study Education (Nik Halik)
-Leadership Empowerment® – BONUS Home Study Education (Peter Bland)

ADDED BONUSES…

-Deception Island – cruising into this volcanic crater and visit an
 old whaling station

-Curverville Island – visit one of the largest Gentoo Penguin
 rookery in the Antarctic. Anchor at night at Enterprise Island
 and ski in spectacular surroundings

-Neko & Paradise Harbours Watch ice crashing from glaciers
 nearby and view magnificent icebergs

-Neumeyer Channel – to ski ashore at Weincke island

-Melchior Islands – relax ashore amongst the fur seals while
 waiting for good weather to return across the Drake passage.

And Much, Much more surprises….

Departure Dates:
Embark: 19 Dec 2007 Ushuaia
Disembark: 29 Dec 2007 Ushuaia

Warm regards
Nik Halik & Peter Bland

===================================================

Antarctica Here I Come!

This is one of the ‘crazy’ thing I decided to commit myself to during the moneymasters event I attended in Perth recently!

CashFlow On Ice

I have never done anything like this before in my life, so this will be a great experience! Initially I wasn’t thinking of going to Antarctica, but as I was leaving to go home, Kang stopped me and asked me if I was going to Antarctica! After chatting with him for about a few minutes, I made up my mind and signed up. (took me about 30-45seconds to make up my mind)

I believe that if somebody is going to make a decision, they only need less than 60seconds to do it! If they take longer than that, they are not going to be making the decision today.

Right now I need to make 3 instalment of $5,500 on the 1st July 2007, 19th August 2007 and 19th October 2007, a grand total of $16,500. In addition to this, I’ll need to buy the plane ticket to South America. I’ve been looking on the internet and it cost around 4-7K depending on stops.

 Also need money for accomodation, equipment & spending money! So all up, say $30,000

 I have never been so focused in my life! Antarctica, Here I Come!

Daniel Kertcher back in Perth!

Daniel Kertcher is back in Perth! He will be presenting at a seminar on Sunday, 15th April 2007, Novatel Langley Hotel – 221 Adelaide Terrace. It starts at 9am till 5:30pm (registration at 815am)

Daniel usually speaks about share markets, options and CFD. He is a GREAT speaker! worth a listen to when you have the time!!! 

Email: info@iaspire.com.au or call them on 1300 132 941

Click here for the Brochure: Daniel Kertcher Perth One Day Seminar

QCOM

Finally exited this position. I entered QCOM on the 5th April 2007 and exited on 12th April 2007. Bought at $43.707 and sold at $42.198 (a loss of $1.509), I had opened 400 units and made a total loss of $603.6 (Below is the graph with my entry & exit price, and the support and resistance line i drew in. The red arrow I drew in indicates the breakout)

QCOM 12th April 2007

Remember everything is in USD! So the question is where did I made my mistake? Firstly I should not have opened this position in the first place. I didn’t follow ANY RULES, and traded this on PURE GET FEELING, I actually opened this position right after a double top formation. Now that It has fallen pass the support level, I can expect QCOM to trade down to about $40.

In real life, I would be watching QCOM to open a position to trade it on a trend reversal. However, I would wait for volume support before I enter this trade.I would expect a $2 movement downwards, this is following the rules that I have studied.

I am going to sit this one out and watch it. This is an example to everybody who don’t follow the rules! This is the sort of punishment you should expect to suffer!

Brad Sugars – Billionaire in Training World Tour 2007

Use this code: BITTF001 when you register at http://www.billionaireintraining.net/registration.html

Read the attached PDF file for more information: Billionaire In Training

I’ve seen this guy speak and he is great! definitely worth going to this one if you have a spare 3 hours in your life on a Tuesday evening.

WPL

Looking for trades during work today and stumbled back onto WPL. WPL has broken out of its down trend on the 27th March 2007 and it seems to have pulled back to around $38.6 area and just hovering at that price for the past 1-2 weeks and creating a support level at this price .

WPL 11 April 2007

The Trade
Sell April $38.0 Puts @ $0.32
Buy April $37.5 Puts @ $0.21

Expiry = 26/04/2007
Share/Contract = 1000
Max Profit = 0.11 (0.32-0.21)
Max Risk = 0.39 [(38.0-37.5) - (0.32-0.21)]
Return on Risk = 28.21%
Breakeven = $37.89

I opened 10 contracts:
Reward for trade (excluding fees) $1,100.0
Reward for trade (including fees) $890.6
Total Risk for trade $3,900.0

The above assumes that on 26th April 2007 WPL is trading at or above $38.0
(WPL closed today @ 38.88)

SGB

I’ve been lazy lately to look for trades, so when I received a recommendation this morning I couldn’t resist taking the trade. SGB has 5 points of support over the past 12 months and its obviously in an uptrend. There is strong support at the $34 level and today was an up-day forming a higher low created on 14th March 2007 (ie. short term bullish market – zigzag formation)

Recommendation Comments ( Kinetic Securities)
“Looking at the charts, SGB is giving all the signs that it is about to move into it’s next bullish phase. SGB has found support at it’s 50% Fibonacci level (39.90), it has been trending nicely since it’s start back in late August last year and has held the 50 EMA. With today’s strong bullish candle we feel that an opportunity has presented itself to enter the market.”

This is pretty much the level of technical and fundamental analysis I do when I open a trade (its not too exciting and it takes me about 5mins to read it and do some technical analysis)

The Trade
Sell April $34.0 Puts @ $0.245
Buy April $33.5 Puts @ $0.13

Expiry = 26/04/2007
Share/Contract = 1000
Max Profit = 0.115 (0.245-0.13)
Max Risk = 0.385 [(34.0-33.5) - (0.245-0.13)]
Return on Risk = 29.87%
Breakeven = $33.885

I opened 10 contracts:
Reward for trade (excluding fees) $1,150.0
Reward for trade (including fees) $940.6

Tax Is Coming

Took today off from work to relax from the road trip. Opened a position for SGB and spent most of my day preparing my tax return and analysing the market. 3 more months before the financial year, hopefully I will be able to earn a heap of cash in 3 months time to pay for the setup cost etc. of my purchases.

I am using Tax Intelligence as my accountants and lawyers. They are based in Perth and if you are serious about investing I highly recommend you getting in touch with Tax Intelligence to set up your legal & business structures. I’ve been referring heaps of my friends and colleagues to them, I wish I get a kick back from them… but I doubt that will be happening anytime soon, hopefully they will do me a deal on my accounting etc. Remember when you have your interview with Tax Intelligence, tell them I sent you and they will tell you stories about me. (hopefully good ones)

Free Sprint Phones with Plans | Thanks to CD Rates, Conveyancing and Registry Software