Neutral Nick - Closed May Positions
Here is a run down of all of Nick's closed/booked May option trades; as mentioned he closed via MOC to offset.
MOC - is short for market on close; typically a market order on the floor done in the final minutes of trade; they don't GTD that the price closes there; but they are one of the common orders placed when one is trying to hedge at or near the closing price.
The table showing Nick's loses looks a little dissapointing; but
keep in mind that his orginal trades and positions where all of the July; so these trades where adjustments or in some manner hedges against other positions. My hope is Nick, myself, and others can look back and see where he maybe made mistakes; as you can really see in one of these positions where he managed to do the absolutely wrong thing at the wrong time; because he simply got frustrated and didn't stick to his plan. I.E. the big loss here is the deep in the money sold call options. A trade the typically wouldn't be done unless one was trying to trade a synthetic position. Nick in his plan never mentioned trading futures and yet he basically did; that along with a failure to follow up is why he went from trading the 5-20 lots; to 50-200 lots; sometimes more. Overall assuming his bank didn't pull his line of credit perhaps he is ok as his bottom line has great potential; but is the stress worth it? Also if he did have to borrow money how well did it perform; what is his ROA when it is all said and done.
MOC - is short for market on close; typically a market order on the floor done in the final minutes of trade; they don't GTD that the price closes there; but they are one of the common orders placed when one is trying to hedge at or near the closing price.
The table showing Nick's loses looks a little dissapointing; but
keep in mind that his orginal trades and positions where all of the July; so these trades where adjustments or in some manner hedges against other positions. My hope is Nick, myself, and others can look back and see where he maybe made mistakes; as you can really see in one of these positions where he managed to do the absolutely wrong thing at the wrong time; because he simply got frustrated and didn't stick to his plan. I.E. the big loss here is the deep in the money sold call options. A trade the typically wouldn't be done unless one was trying to trade a synthetic position. Nick in his plan never mentioned trading futures and yet he basically did; that along with a failure to follow up is why he went from trading the 5-20 lots; to 50-200 lots; sometimes more. Overall assuming his bank didn't pull his line of credit perhaps he is ok as his bottom line has great potential; but is the stress worth it? Also if he did have to borrow money how well did it perform; what is his ROA when it is all said and done.
| CLOSE PRICE MAY | WHEAT | CORN | BEANS | ||||
| Long | # of | Option | My Trade | $ 7.99 | 7.37 | 13.81 | |
| or Short | Contracts | Symbol | Price | Dollars Spent/Received | Value on Close | Net Unit | Total Difference |
| LONG | 40.00 | WK770C | 23.000 | $ 46,000.00 | $ 58,000.00 | $ 0.29 | $ 12,000.00 |
| LONG | 35.00 | WK690P | 15.750 | $ 27,562.50 | $ - | $ - | $ (27,562.50) |
| WHEAT TOTAL | $ (15,562.50) | ||||||
| LONG | 65.00 | CK620C | 34.000 | $ 110,500.00 | $ 367,250.00 | $ 1.13 | $ 256,750.00 |
| LONG | 20.00 | CK700C | 52.500 | $ 52,500.00 | $ 37,000.00 | $ 0.37 | $ (15,500.00) |
| LONG | 55.00 | CK750C | 10.250 | $ 28,187.50 | $ - | $ - | $ (28,187.50) |
| LONG | 50.00 | CK750C | 7.875 | $ 19,687.50 | $ - | $ - | $ (19,687.50) |
| LONG | 65.00 | CK620P | 37.500 | $ 121,875.00 | $ - | $ - | $ (121,875.00) |
| LONG | 250.00 | CK630P | 14.250 | $ 178,125.00 | $ - | $ - | $ (178,125.00) |
| LONG | 50.00 | CK640P | 25.625 | $ 64,062.50 | $ - | $ - | $ (64,062.50) |
| SHORT | 65.00 | CK100C | 516.500 | $ (1,678,625.00) | $ (2,070,250.00) | $ (6.37) | $ (391,625.00) |
| SHORT | 195.00 | CK680C | 14.250 | $ (138,937.50) | $ (555,750.00) | $ (0.57) | $ (416,812.50) |
| SHORT | 41.00 | CK750C | 24.625 | $ (50,481.25) | $ - | $ - | $ 50,481.25 |
| SHORT | 150.00 | CK580P | 8.250 | $ (61,875.00) | $ - | $ - | $ 61,875.00 |
| SHORT | 195.00 | CK580P | 19.375 | $ (188,906.25) | $ - | $ - | $ 188,906.25 |
| SHORT | 20.00 | CK650P | 28.875 | $ (28,875.00) | $ - | $ - | $ 28,875.00 |
| SHORT | 20.00 | CK650P | 20.250 | $ (20,250.00) | $ - | $ - | $ 20,250.00 |
| SHORT | 5.00 | CK700P | 36.500 | $ (9,125.00) | $ - | $ - | $ 9,125.00 |
| SHORT | 15.00 | CK700P | 32.000 | $ (24,000.00) | $ - | $ - | $ 24,000.00 |
| CORN TOTAL - OUCH | $ (595,612.50) | ||||||
| LONG | 15.00 | SK1440C | 13.875 | $ 10,406.25 | $ - | $ - | $ (10,406.25) |
| LONG | 40.00 | SK1300P | 52.375 | $ 104,750.00 | $ - | $ - | $ (104,750.00) |
| LONG | 100.00 | SK1320P | 20.000 | $ 100,000.00 | $ - | $ - | $ (100,000.00) |
| LONG | 5.00 | SK1340P | 47.125 | $ 11,781.25 | $ - | $ - | $ (11,781.25) |
| SHORT | 50.00 | SK1240C | 72.250 | $ (180,625.00) | $ (352,500.00) | $ (1.41) | $ (171,875.00) |
| SHORT | 20.00 | SK1300C | 39.375 | $ (39,375.00) | $ (81,000.00) | $ (0.81) | $ (41,625.00) |
| SHORT | 40.00 | SK1340C | 25.375 | $ (50,750.00) | $ (82,000.00) | $ (0.41) | $ (31,250.00) |
| SHORT | 20.00 | SK1400C | 44.875 | $ (44,875.00) | $ - | $ - | $ 44,875.00 |
| SHORT | 100.00 | SK1500C | 11.250 | $ (56,250.00) | $ - | $ - | $ 56,250.00 |
| SHORT | 5.00 | SK1600C | 10.500 | $ (2,625.00) | $ - | $ - | $ 2,625.00 |
| SHORT | 45.00 | SK1200P | 13.750 | $ (30,937.50) | $ - | $ - | $ 30,937.50 |
| SHORT | 40.00 | SK1260P | 15.500 | $ (31,000.00) | $ - | $ - | $ 31,000.00 |
| SHORT | 30.00 | SK1300P | 36.375 | $ (54,562.50) | $ - | $ - | $ 54,562.50 |
| SHORT | 12.00 | SK1400P | 42.500 | $ (25,500.00) | $ (11,400.00) | $ (0.19) | $ 14,100.00 |
| SHORT | 45.00 | SK1400P | 48.000 | $ (108,000.00) | $ (42,750.00) | $ (0.19) | $ 65,250.00 |
| SOYBEAN TOTAL - OUCH | $ (172,087.50) | ||||||