Yong-Long Lai

These are the 4 trades I opened on Monday 22nd October 2007. Took me about 30mins to find and execute these trades, not exactly my best efforts as I was in a rush and only chasing high returns. I only used the screener function on optionsXpress screening for the highest static returns. From there I look for stock codes that I recognised and then looked at the graphs to look for support and resistance.

Here are my stock options trading for November 2007 contracts. If all my positions get assigned/exercised then I am looking to return about 5% (10% margined) in a 30 day period. This equates to 60% (120%) per year, not taking compounding into consideration. Most of my positions that I opened for November are “at the money” hence the higher returns.

The Trade – 22/10/2007
NVDA
Options/Contract = 100
Buy 100 NVDA @ $38.66
Sell 1 NVDA $37.50 Call @ $3.00
Time Value: $1.84
Intrinsic Value: $1.16

Breakeven Point: $35.66
Assigned Return: 4.91% ($1.84/$37.50)
Unassigned Return: 8% ($3.00/$37.50)

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AAPL
Options/Contract = 100
Buy 100 AAPL @ $174.42
Sell 1 AAPL $170.00 Call @ $12.42
Time Value: $8.00
Intrinsic Value: $4.42

Breakeven Point: $162.00
Assigned Return: 4.71% ($8.00/$170.00)
Unassigned Return: 7.31% ($12.42/$170.00)

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RIMM
Options/Contract = 100
Buy 100 RIMM @ $114.13
Sell 1 RIMM $110.00 Call @ $9.06
Time Value: $4.93
Intrinsic Value: $4.13

Breakeven Point: $105.07
Assigned Return: 4.48% ($4.93/$110.00)
Unassigned Return: 8.24% ($9.06/$110.00)

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AMZN
Options/Contract = 100
Buy 100 AMZN @ $90.52
Sell 1 AMZN $90.00 Call @ $6.75
Time Value: $6.23
Intrinsic Value: $0.52

Breakeven Point: $83.77
Assigned Return: 6.92% ($6.23/$90.00)
Unassigned Return: 7.5% ($6.75/$90.00)

Hi Everybody, its been a while since a done a complete post. On the 19th October 2007 US Stock Options expired. All my positions were assigned, I didn’t have to to check my position and roll them but it doesn’t matter cause I still made money. On average I made about 3-4% return (6-8% margined) over a 30 day period. If you annualise this it would mean I am making 72% – 96% a year. (that’s without compounding) Its crazy how little risk i’m actually taking to generate this sort of cashflow from the simplest stock options trading strategy

Better not count the chickens before they hatch. Anyways i made enough to from this round of stock options trading to cover my trip to Bali & Malaysia for the EBS seminar and connect up with the XL Life Members in Malaysia etc.

The Trade – 25/9/2007
AMD
Options/Contract = 100
Buy 100 AMD @ $13.50
Sell 1 AMD $13.00 Call @ $0.91
Time Value: $0.41
Intrinsic Value: $0.50

Breakeven Point: $12.59
Assigned Return: 3.15% ($0.41/$13.00)

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NVDA
Options/Contract = 100
Buy 100 NVDA @ $35.85
Sell 1 NVDA $35.00 Call @ $2.24
Time Value: $1.39
Intrinsic Value: $0.85

Breakeven Point: $33.61
Assigned Return: 3.97% ($1.39/$35.00)

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GM
Options/Contract = 100
Buy 100 GM @ $35.06
Sell 1 GM $32.50 Call @ $3.87
Time Value: $1.31
Intrinsic Value: $2.56

Breakeven Point: $31.19
Assigned Return: 4.03% ($1.31/$32.50)

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NOK
Options/Contract = 100
Buy 100 NOK @ $36.74
Sell 1 NOK $35.00 Call @ $2.66
Time Value: $0.92
Intrinsic Value: $1.74

Breakeven Point: $34.08
Assigned Return: 2.63% ($0.92/$35.00)

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