Category: Beginners

January 27, 2017

What is an Option?

Filed under: Beginners,Finance - 27 Jan 2017

I posted my first YouTube video this morning. You can view it below or directly on my new YouTube channel.

It’s not really catered to regular My Trader’s Journal readers since you all know these basic points, but I figured I should start with a high-level overview of options trading and single contract puts and calls. I didn’t cover spreads/combinations or Greeks or anything beyond what could fit in a very broad summary for a beginner.

My new account will be funded …



May 21, 2014

Book Review: The Joy of Financial Security

Filed under: Beginners,Reading - 21 May 2014

A few months ago, I received a free copy of Donna Skeels Cygan’s book, The Joy of Financial Security.  I don’t review many books and when I do, I make it a point not to let the fact that I received it at no cost influence my opinion.  I don’t make it through more than a few chapters in some of the free books I receive.  I finished …



February 21, 2014

Options Expiration – February 2014

Filed under: Beginners,Finance,Stock Picks - 21 Feb 2014

Once again, I had a thin day for closing positions on option expiration day.  The only option I had remaining coming into today was one SPY February $185 naked put.  It was in-the-money by $0.90 after yesterday’s close and started today by gaining ground up to $184.89 before rolling over and closing at $183.92.  I waited until the afternoon to roll it out to April.  The February contract had as much as $0.25 in time value this morning and I …



January 8, 2013

Profit Taking Tuesday

Filed under: Beginners,Finance,Stock Picks - 08 Jan 2013

My new favorite type of order is a trailing stop.  I only used it on one of my orders that hit today, but maybe I should’ve used it on all four since prices improved somewhat after my trade.  A trailing stop works the same on option contracts as it does for a stock or ETF.  I use it to protect myself from losses getting too big or locking in profits.  In short, a trader can enter a trailing amount (as …



September 30, 2011

Carnival of Financial Planning – Edition #204

Filed under: Beginners,Finance,Life's Expenses,Readers' Posts - 30 Sep 2011

I have the honor of hosting this week’s Carnival of Personal Financial Planning, started by The Skilled Investor.  Check out some of the blogs below and hopefully you’ll you can learn something.

 ————————————————————————————

Best Personal Financial Planning and Personal Investment Articles this Week from Personal Finance Blogs
Carnival of Financial Planning – Edition #204 – September 30, 2011
Welcome to the September 30, 2011 Edition #204 of the Carnival of Financial Planning.

The Carnival of Financial Planning takes a long-term view of personal financial planning for …



March 8, 2009

S&P 500 Chart ($SPX.X) – March 6, 2009

Filed under: Beginners,Finance,Indices,Stock Charts - 08 Mar 2009

When I wrote about the S&P 500 Chart two weeks ago I said I expected the 741 line to hold support, but if it broke to expect a steep sell off.  Well, it broke and dropped another 75 points in just a few days (which happened to be an intraday low of 666 and change for those who like the macabre).  The break below 741 took a few days to play out.  …



March 2, 2009

Closed MON Covered Call, Again

Filed under: Beginners,Finance,Stock Picks - 02 Mar 2009

For the second time I took a round trip ride on Monsanto (MON) covered calls.  Last week I closed my covered call on MON and then sold the same covered call as MON rallied.  I sold the second MON covered call near the high of the day and saw it nose dive after that.  I would have saved more money by dumping my shares then, but didn’t, so I have to go with what I did.  …



February 25, 2009

Changed SSO Position

Filed under: Beginners,Finance,Stock Picks - 25 Feb 2009

I’m still expecting support to hold for the next few weeks on the S&P 500 at 741 after testing that level again on Monday.  I rethought my position though.  I originally paid $432.24 for my SSO March 19 long calls.  The issue with that trade was that SSO needed to be above $19 to retain any of the option value and above $20.50 to make a profit.  The most I could lose was $432.24, but I …



February 23, 2009

Sold USO Calls & Bought SSO Calls

Filed under: Beginners,Finance,Indices,Stock Picks - 23 Feb 2009

USO
I started the day by selling covered calls on my 300 newly acquired USO shares I had to buy at $31.00 (I paid $9,319.99 with commissions) from the February 31 naked puts that expired in the money (ITM).  USO started up and then headed south with the rest of the markets.  While USO was trading at $24.30 I sold three USO March 25 covered calls (UBOCY) for $1.65 each and received $482.75 after commissions. 

I considered the March 26 and March …



Next Page »