Sell - VDSI

Stock Option: VDSI SEP 20 Call
Buy Date: 2/21/2008
Sell Date:
Units: 300
Buy Price: 0.7
Commission: 26
Total Investment: 236
Final Price: 0.45
Final Value: 135
Return: -101
Total Return: -42.79661017

Another lesson here: Buy calls when the market is doing well. Again, short term options trading is not meant for long term strategies.

Speaking of which, I will be taking a break from trading for now, and rethink through my strategies. Most likely will come back in when the market outlook becomes slightly better.

Sell - SIGM

Made another HUGE Loss:

Stock Option: SIGM OCT 35 Call
Buy Date: 2/27/2008
Sell Date: 3/4/2008
Units: 100
Buy Price: 6.3
Commission: 26
Total Investment: 656
Final Price: 3.3
Final Value: 330
Return: -326
Total Return (%): -49.69512195

Woo! Another major loss to add to my lessons-to-be-learned. Lesson here, remember, never, ever, ever hop into a price drop right after the bad news is released. Because, things will always go down, down, down before it goes back up, up, up. REMEMBER!

Buy - SIGM

Stock Option: SIGM OCT 35 Call
Buy Date: 2/27/2008
Units: 100
Buy Price: 6.3
Commission: 26
Total Investment: 656
Current Price: 6.5
Current Value: 650
Return: -6
Total Return (%): -0.914634146

Made a very bad mistake today. Bought this option at 6.3 when I could have bought it at 5.8. Why? Because I gave in to emotion from the market.

Anyhow, bought this option because the price suddenly sharply fell due to insider selling. Decided that it was an overreaction of the market especially since the fundamentals of the company was excellent. In fact, Zacks investments rates it as the top aggressive growth stock. Lo and behold, the price went up about 2 dollars in one day. For a 30 dollar share, thats a lot! And that's why I made such a bad mistake... Ah well, I'll see how it goes - I believe that the stock will keep going up as it came down from a price of 40 dollars.

PS: I'm glad I sold GSK. It went down - my prediction came true! Not bad! So far, 3 out of 3 true predictions.

Keep learning!

Sell - GSK

Decided to sell GSK after I learned my lesson last time - don't be greedy. As I saw GSK approach the Fibonacci line like the last time after the Warren Buffet buy, I quickly sold it. Mere minutes after I sold it, the price jumped up and went past the line! Argh! But oh well, I'm still sticking to my investment principles and not succumbing to greed. That's the Golden Rule.

Stock Option: GSK JAN 2009 40 Call
Date Bought: 2/11/2008
Date Sold: 2/26/2008
Units: 100
Buy Price: 5.8
Commission: 26
Total Investment: 606
Sell Price: 7.4
Final Value: 740
Return: 134
Total Return (%): 22.11221122

Not bad I think - 22% in 2 weeks. But still doesn't cover my major loss. Ah well.

Keep learning!

Buy: VDSI

Haha... Rebought VDSI after its share price dropped drastically after the earnings release. Thank god I quickly sold the option right before the release. Made the right move. Note to self: remember never to risk on a pre-earnings game - it's exactly like gambling.

Stock Option: VDSI SEP 20 Call
Date Bought: 2/21/2008
Units: 300
Buy Price: 0.7
Commission: 26
Total Investment: 236
Current Price: 0.55
Current Value: 165
Return: -71
Total Return (%): -30.08474576

Yeah, it looks painful for now, but I truly believe the market has over-exaggerated the lower than expected earnings. We'll see. I'm enjoying my lessons in life.

First Major Loss

Made my first major loss.

Stock Option: MRK APR 47.5 Call
Date Bought: 2/14/2008
Date Sold: 2/21/2008
Units: 100
Buy Price: 2.8
Commission: 26
Total Investment: 306
Final Price: 1.65
Final Value: 165
Return: -141
Total Return (%): -46.07843137

Lesson to be learn - stick to technical analysis and do not rely solely on candlestick patterns. Candlestick patterns only work at the very end, when making the final decision to buy the stock.

This really hurt me but I had no choice. I could have waited for the option price to go up again but it would be foolish to do so. Hence, I am sticking to my discipline to sell an option when it has gone down about 50 % in price.

Good lesson for you Adrian.

Buy - ONNN

Stock Option: ONNN JAN 2009 5 Call
Date Bought: 2/19/2008
Units: 200
Buy Price: 1.9
Commission: 28
Total Investment: 408
Current Price: 1.7
Current Value: 340
Return: -68
Total Return (%): -16.66666667