Hello Suckers …

Freeport McMoRan (FCX)

Bear Call spread

BTO 1 FCX Feb18 2012 42.00 Call
STO 1 FCX Feb18 2012 39.00 Call

Price: limit credit $1.20

Max risk: $180
Max gain: $120 if price stays below $39 at expiration

Update:
01/10/2012 - filled @ $1.2 ($120 credit)

This trade shall open on Monday next week:

Diamond Offshore Drilling Inc (DO)

Iron Condor

BTO 1 DO Jan21 2012 66.25 Call
STO 1 DO Jan21 2012 61.25 Call
STO 1 DO Jan21 2012 52.00 Put
BTO 1 DO Jan21 2012 47.00 Put

Price: limit credit $4.61

Max risk: $39
Max gain: $461 if price is between 52.00 - 61.25 at expiration

Update:
01/09/2012 - trade canceled - market maker unable to execute as condor combination, it may work as separate spreads, so I will review later if it makes sense to add as separate spreads.

U.S. Natural Gas ETF (UNG)

Long call

BTO 1 UNG Apr21 2012 7 Call

Price: limit debit $0.25

Max risk: $25
Max gain: Unlimited

Update:
01/07/2012 - canceled, it didn’t meet the entry price

When looking at GLD recently, we can see that it broke below its 200 day MA as well as it broke thru its long term trend. It seems GLD is poised to go lower. Today the market showed a bit weak trading (compared to yesterday’s big move), so I believe, GLD can get lower during this month. Right now it is attacking 200 day MA from which it may go back down to $150 or even lower.

I will play this downtrend by placing a butterfly on GLD:

SPDR Gold Trust

Put Butterfly

BTO 1 GLD Jan21 2012 154 Put
STO 2 GLD Jan21 2012 150 Put
BTO 1 GLD Jan21 2012 146 Put

Price: limit debit $0.58

Max risk: $58
Max gain: $350 at expiration if the stock lands at $150 per share.

Update:
01/05/2012 - order filled @ 0.58

I am going to open a new contingent order:

Allegheny Technologies

Long Puts

Contingency:
If the stock’s last price is greater or equal than 54.20 then:

BTO 1 ATI Apr21 2012 55 Put

Price: at market (expected price per contract would be $6.2)

Max risk: $620
Max gain: Unlimited (potential target: $11.70 or $1170 per contract)

Update:
01/06/2012 - trade canceled, it didn’t meet the entry price

I am also going to adjust the following position by rolling up the upper body of the butterfly:

Schlumberger

Put Butterfly

Unfortunately my broker doesn’t allow me to roll over with one order, so I have to close the upper body first and then open higher part later:

1st step:
BTC 2 SLB Jan21 2012 60 Put
STC 1 SLB Jan21 2012 65 Put

Price: limit credit $0.25

When filled, 2nd step will follow:

BTO 1 SLB Jan21 2012 70 Put
STC 2 SLB Jan21 2012 65 Put

Price: limit debit $0.93

This trade will be taken on both my accounts: TD trading account and ROTH IRA account.

Update:
01/04/2012 - I talked to my broker and they do not allow me to open an uneven butterfly, so I would need to treat it as spreads. For that I do not have enough money on my account and thus I cannot finish this conversion. Thus I am considering this trade as closed with a loss.
I sold the upper body for credit $0.23, with the original cost of $0.78 this trade is a loss 70%

Trade adjustment on Caterpillar:

Put Spread
STC 1 CAT Jan21 2012 90 Put
BTO 1 CAT Feb21 2012 90 Put
STO 1 CAT Feb21 2012 85 Put

Limit debit $0.15
New cost basis: $2.73