You see that

You see that’s the way how trading should be, it should not affect you
and your social life. You do not have to be in front of your computer
for 10 hours every trading day in order to make money. This is crazy,
too much stress and it’s ridiculous, it will only lead you into addiction
and you will become a high flying gambler. Stop immediately if you
are on the graveyard shift, it will affect your life and your family’s life.
You too can enjoy your life while trading options. Do it the smarter
way.




“Those who have knowledge don’t predict. Those who predict
don’t have knowledge” – Lao Tzu (604 BC -531 BC)

Case Study #1 Phillips-Van Heusen Corp

PVH is an excellent example of a put options trading for profit that is
signaled by the stocks itself. All you need to do is to follow the signals
and set your orders on automation. This set up will removed your
emotions and not to be taken over by your greed.

The bearish reversal candlestick formation was spotted on Feb 15
before market opens and the trading Plan for PVH entry was set up as
follows.

STR Apr08 $50 Put @ market,

1. STR Apr08 $50 Put @ market, if stock price < $50.50



2. KSS Apr08 $45 Put @ market, if stock price < $46.00
3. PVH Jun08 $40 Put @ market, if stock price < $40.50
The next morning when I switch on my computer to check on my
trades, this is what happens last night when I was enjoying my dinner
with my friends.

1. STR not filled as the stock was bullish.
2. KSS Apr08 $45 Put filled at $3.20 and closed at $3.60, $0.40
or 12.5% profit.
3. PVH Jun08 $40 Put filled at $4.50 and closed at $5.00,
$0.50 or 11.1% profit.
All the three trades were set to trigger mechanically by the stock itself.
I don’t do the deciding, the stock does it for me. This eliminates the
chance of emotional trading. For STR, the stock was bullish and it
does not hit the entry point so the order was not triggered. There are
no predictions involved; it’s the stock that tells me what I should do
and does it for me. I just set it on auto pilot mode so that I can enjoy
my dinner.

Trading Plan for PVH

Trading Plan for PVH



Stock trading at $41.65 and when stock price is below $40.50, buy Jun
08 $40 Put.

In the Asia Pacific region, the non daylight saving time difference here
is 13 hrs, which mean the market starts at 10.30 pm local time and I
have a Chinese New Year dinner with some of my business associates.
I know that I can’t possible be back to execute the trades and it won’t
be polite to bring my lap top along to work.

The only way possible to enjoy my dinner without any interruptions
and not worrying that I’ll miss the opportunity of a possible bearish
reversal trade, I set all the three orders to “conditional order” that
is to be triggered if only the stock price drop below the entry signals.

Here are the following orders I have set up on my Interactive Brokers
trading platform.

FILLETS OF EGGS

FILLETS OF EGGS
6 eggs
4 tablespoonfuls of good stock
1/2 teaspoonful of salt
1 saltspoonful of pepper
Beat the eggs with the stock, add the salt and pepper. Turn them into
a buttered square pan, stand this in another of boiling water, and
cook in the oven until the eggs are thoroughly "set." Cut the
preparation into thin fillets or slices, dip in either a thin batter
made from one egg, a half cupful of milk and flour to thicken, or they
may be dipped in beaten egg, rolled in bread crumbs and fried in deep
hot fat. Arrange the fillets in a platter on a napkin, one overlapping
the other; garnish with parsley and send to the table with a boat of
tomato or white sauce.

EGGS A LA VALENCIENNE

EGGS A LA VALENCIENNE
6 eggs
1 pint of dry boiled rice
1/2 pint of strained tomato
2 mushrooms
2 tablespoonfuls of grated Parmesan cheese
2 level tablespoonfuls of butter
2 level tablespoonfuls of flour
1/2 saltspoonful of grated nutmeg
1/2 teaspoonful of paprika
1 teaspoonful of salt
1/2 saltspoonful of pepper
Rub the butter and flour together, add the strained tomato, stir until
boiling, add the mushrooms, sliced, salt, paprika, nutmeg and pepper.
Take a granite or silver platter, put in two tablespoonfuls of butter
extra, let the butter melt and heat; break into this the eggs, being
very careful not to break the yolks. Let the eggs cook in the oven
until "set." Then put around the edge of the dish as a garnish the boiled rice, pour over the eggs the tomato sauce, dust the top with
the Parmesan cheese and send at once to the table.

EGGS A LA MARTIN

EGGS A LA MARTIN
Make a half pint of cream sauce. Put half of it in the bottom of a
baking dish or into the bottom of ramekin dishes or individual cups.
Break fresh eggs on top of the cream sauce, dust with a little salt
and pepper, pour over the remaining cream sauce, sprinkle the top with
grated cheese, and bake in a moderate oven until the cheese is browned
and eggs are "set." Serve in the dish or dishes in which they are
cooked.