Week In Review 7/2 – 7/6/12
Nice profitable week this week, although had a big red day on Friday thanks to two big stop outs.
Highlights of the week:
Winners: OSIR was a big winner for me this week; I had sold the 15 calls last month for an average of around 70 cents. I covered them at 10 cents this week. Synthetic shorts and selling call options can be a good alternative to shorting a stock when you can’t find the borrows. I also find it’s good for “shorting” what I call “grinders” like OSIR…where it just keeps hitting new highs day after day and chewing up shorts. It’s easier to hold through a squeeze since you have a longer time frame with the options. Selling the 15 calls was a no brainer because it had 12 straight up days and the probability of it correcting $2 to $3 or more was quite high. I could’ve held them through expiration so that they expire worthless, but didn’t want to take any chances for an extra 10 cents so I took the sure profits.
Losers: ZSTN and ADMP were big losers for me this week, taking losses on both of them on Friday. I was short ZSTN from 4.05, but it was holding up well on Friday, and the spread was terrible, sometimes as much as $1. I decided to get out at 4.84 because I didn’t want to risk this one turning into a CMEDY. ADMP was a swing long I had been holding from 0.77, anticipating a 0.80 break, but the break never came and it hit my stop limit at 0.63 and I was out at 0.60.
Stats: Not quite where I would like them to be; my P/L ratio is only 1.73 when I’d like it at 3 or better. My largest loser was bigger than my largest winner, and my average loser was also bigger than my average winner. The two big stop outs on Friday didn’t help. I noticed I haven’t been doing so well from the long side the past few months. For the most part I’ve been a break even trader from the long side since April. I looked into why that is by looking at my trading statistics. I couldn’t find anything that would alter what I’m doing, other than a few cases of not obeying my stops and not letting winners run. So I’ll stick with my current long strategies until I see a reason not to.
P/L Ratio: 1.73
# of Trades: 44
% Winners: 68.18%
% Losers: 31.82%
Largest winner: $347.16
Largest loser: $-800
Average winner: $146.16
Average loser: $-181.04
Average winning trade length: 3.57 days
Average losing trade length: 3.29 days
Max consecutive winners: 18
Max consecutive losers: 4