It looks like the market is not doing so well in the long run. I decided to play a bear call spread on QQQQ with a buy of $38.625 (at $0.15) and a sell of $38 (at $0.25). The profit is 19% (0.1/0.525). Breakeven point is above $38.10, which I do not think the stock will meet.
It looks like UNH is on the rise. Big chart looks good. MACD and STO are on the rise. One thing I don't like is low volume. I will go ahead and buy one bull put spread of $85 (buy) and $90 (sell) for a credit of $0.60. The profit is 14% (0.60/4.40). Breakeven point is $89.40.
It looks like QQQQ is on the rise. Big Chart is increasing. The market outlook for the short and medium term is bullish. I will go ahead and buy the bull call spread of $36 (buy) and $36.625 (sell) at $0.55. Profit is 14% (0.625-0.55/0.55). Breakeven is $36.55. I do not expect the price of the stock to fall below $36.55.
It looks like QQQQ does not fare well in the long term. The VXN.X (NASDAQ volatility index) is low. Big chart is also low. I will buy March 38 (sell), 39 (buy) Bear Call spread with a credit of $0.20. The profit will be 0.20/(1-0.2)=20%. Break even point is $38.80.
UNH is steady. Even though MACD is turning low, the price is still on the rise. It's kinda dangerous to buy at this point. I will only invest 1 contract. I will buy Bull Put of 80 (buy), 85 (sell). Profit will be 9.8% (0.45/(5-0.45)). Breakeven will be $84.55.
It looks like QQQQ does not fare well in the long term. The VXN.X (NASDAQ volatility index) is low. Big chart is also low. I will buy March 38 (sell), 38.625 (buy) Bear Call spread with a credit of $0.25. The profit will be 0.15/(0.625-0.15)= 31%. Break even point is $38.15.
A bull call is created for UNH with $80 buy and $85 sell. The spread cost $4.30. Breakeven point is $84.30. If the stock is above $85, the return will be 0.7/4.30, which is 16%.
Market looks bullish. QQQQ index did rise today. However, the big chart does not favor the index. It seems that this rise will not last. A good thing. Keep an eye out for it.
It looks like QQQ is downtrending. The MACD is turning although the STO has not picked up the action. It takes more than a week for the price to rise its new high. I believe it's safe to buy a bear put with $38 (sell) and $39 (buy), that results in 11% profit (1-0.9/0.9). Breakeven points happens at $38.1 (39-0.9).
It looks like OES will not dip below 567. I decided to purchase a bull put spread of 560 and 565. Buy 560 at $0.65 and sell 565 at $1.10 for a net credit of $0.45. I am not sure how to enter the order in. According to the mannual, I will need to enter a negative #. I entered -0.45. The interest for this trade is 45/455, which is about 10%. Breakeven point is $560.5 (565-0.45).
It looks like JCOM keeps going up despite market downturn. It will be sold tomorrow. CTSH dropped today. There is no clear hint of it dropping further. Hold.
JCOM breaks previous high wigh 1.5 x of volume. It's time to sell and suffer the loss.
CTSH went down today. However, the volume was weak. An indication that it might go up today. Hold it before selling it. JCOM went up today. It hit the previous ceiling with less than 1.5 of the average volume. It might go down yesterday. Hold it before selling it.
After losing $3000.00, I learn a lesson of not being greedy. It is better to play safe. Investment is just like growing plants. There is no magic to growing. I can't pluck it up lest I destroy the plant. I can only patiently wait. My position now will to shift into conservative spread trade. Trade position will be open with low volatility stock. 5% or less return every month is still better than losing all the way. This kind of trade will only give me less attendance to my stock as I will be using my computer less frequently during the training.
