3/24/2009 ACTIVE TRADES UPDATED

GLD: Opened 02/26/09
Buy to Open 3 OQAAV Net Debit ($19.62) GLD Jan 100 Call 2011
Sell to Open 3 GLDCV Net Credit $1.02 GLD Mar 100 Call
Cost basis ($18.60)
March contract expired. Selling April call closer to current price of $90 since $100 call is only $0.50
Sell to open 3 contracts April $95 call Net Debit ($1.50) GLD Apr 95 Call
Cost basis ($17.10) = ($18.60)-$1.50

SA - Seabridge Gold Buy 500 shares at $14.00 Seabridge Gold Inc Com
Sell to Open 5 SACC $1.50 Cost basis ($12.50) =($14.00 - $1.50)
Buy to Close 5 SACC Net Credit $2.61 SA Mar 15 Call
Sell to Open 5 SADC Net Credit $3.21 SA Apr 15 Call
Cost basis = ($11.90) = ($12.50 - $0.60)

For some reason, someone exercised their option and I got assigned my April $15 call one month early. Hey, I'll take the one month premium anytime. So I collected two months of premium along with gaining $1.00 per share in equity. Original purchase price at $14. Had to sell at $15 ($15-$14 = $1) and my monthly premium from selling the contracts was $2.10.

3/19/2009 ACTIVE TRADES UPDATED

Here is another trade that I am in relating to Silver (symbol SLV)

03/04/2009 Bought 2000 SLV @ 12.85 (25,700.00)
Sold 10 SLVCM @ $0.50 (This reduced my cost basis by only $0.25 since I had 2000 shares and I sold only 10 contracts)
Cost basis = ($12.60) = ($12.85-$0.25)
Bought 10 SLVCM @ $0.41
Sold 10 SLVDM @ 0.91 (This reduced my cost basis another $0.25 since I rolled my 10 contracts and this covers one-half of my total shares)
Cost basis = ($12.35) = ($12.60 - $0.25)


FXB: Buy to Open 2 FWKUJ Net Debit ($7.15) FXB Sep 140 Put
Sell to Open 2 FWKOJ Net Credit $1.72 FXB Mar 140 Put
Cost basis ($5.43)
Buy to Close 2 FWKOJ Net Debit ($2.90) FXB Mar 140 Put
Sell to Open 2 FWKPJ Net Credit $4.30 FXB Apr 140 Put
Cost basis ($5.43) - $1.40 = ($4.03)

GLD: Opened 02/26/09
Buy to Open 3 OQAAV Net Debit ($19.62) GLD Jan 100 Call 2011
Sell to Open 3 GLDCV Net Credit $1.02 GLD Mar 100 Call
Cost basis ($18.60)

SA - Seabridge Gold Buy 500 shares at $14.00 Seabridge Gold Inc Com
Sell to Open 5 SACC $1.50
Cost basis ($12.50) =($14.00 - $1.50)
Buy to Close 5 SACC Net Credit $2.61 SA Mar 15 Call
Sell to Open 5 SADC Net Credit $3.21 SA Apr 15 Call
Cost basis = ($11.90) = ($12.50 - $0.60)

WATCH CERN, POWL, URS, OMGI, STSI

CERN is now above both the 50 and 200 day moving average. Good trading volume so wait until it pulls back to the 200 day moving average. Same goes for POWL.

I think URS is high on my list.

How in the world is OMGI making new highs in the past 3 months?

STSI has really peaked my interest.

ACTIVE TRADES

Just rolled the FXB calendar spread. Here is the initial trade:
Buy to Open 2 +FWKUJ Net Debit $7.15 FXB Sep 140 Put
Sell to Open 2 +FWKOJ Net Debit $1.72 FXB Mar 140 Put
Cost basis ($5.43)
Now here is the roll:
Buy to Close 2 +FWKOJ Net Credit $2.90 FXB Mar 140 Put
Sell to Open 2 +FWKPJ Net Credit $4.30 FXB Apr 140 Put
Cost basis ($5.43) - $1.40 = ($4.03)

Here is my gold trade on GLD Opened 02/26/09
Buy to Open 3+OQAAV Net Debit $19.62 GLD Jan 100 Call 2011
Sell to Open 3 GLDCV Net Debit $1.02 GLD Mar 100 Call
Cost basis ($18.60)

SA - Seabridge Gold
Buy 500shares SA at $14.00 Seabridge Gold Inc Com
Then here are covered calls to decrease my cost basis:
Sell to Open 5 +SACC $1.50
Cost basis ($12.50) =($14.00 - $1.50)
Buy to Close 5 +SACC Net Credit $2.61 SA Mar 15 Call
Sell to Open 5 +SADC Net Credit $3.21 SA Apr 15 Call
Cost basis = ($11.90) = ($12.50 - $0.60)

FOREX OPTIONS

Stocks are so volatile right now that it is hard to say which way they are going except down. I have now traded some new options against foreign currencies. These are called forex options.

On 3/4/2009, I sold three March $63 put contracts for $0.65 and at the same time bought three April $63 put contracts for $1.35. against the Australian dollar FXA. The intent is to watch the March contract evaporate to a value of $0.00 then buy-to-close the April contract to capture the $0.70 spread.

I did this because it appears as if $62 is a level of support and in the next 17 days I doubt that this will be breached. My rationale for this basis is the fact that FXA is non-trending (ADX is below 20) and that the Slow Stochastics is in oversold. Purely a technical trade and could be considered a scalp trade since it is going against the trend of FXA which is down since it is below the 200 day moving average. Click on the image to enlarge it to check out the indicators.

I also traded GLD a few day ago by trading what is called a calendar spread. I expect the price of gold to rise in the next year so I bought a LEAP (Jan. 2011 $100 call) and sold a near month call (Mar. 2009 $100 call). As you can see, this trade will last 21 months. On an every month basis, I want to capture $300 in order to make a small profit. If I can do this over and over, I stand to make money. My rationale for this trade is that GLD is over its 200 day moving average and the overall general outlook for the economy. So it is a mix of technical trading and economic fundamentals. If GLD dips back down to near $85, I am going to buy more 2011 calls at $90 strike.

Good luck trading.

JD