The LEAPS Option Trader
105 W. Monument Street
Baltimore, MD 21201
Friday September 10, 2004
Email – #196
** Ahhh… The Luxury of Time
Our LEAPS Options Trader portfolio is beginning to percolate nicely. The Chesapeake spread is at its highs. Placer Dome is moving higher. Lucent is starting to pick up steam, thanks to new contracts. Dynegy appears to be breaking a little higher everyday. The S&P MITT is close to new highs. The Semiconductor spread is as volatile as ever and our Toll Brothers put is looking for direction. Even our Nokia spread is showing signs of life.
Fortunately, we have time on our side. If we were playing short-term options, we would have buried most of our positions during the latest market decline. Instead, we have more than one full year left on every position we own. A lot can happen in a year… heck, a lot can happen in two weeks!
I have been researching a lot of new positions during my forced “hurricane” internment. (As I write, there is another hurricane, Ivan, knocking on the door). So, look for a new slew of picks in the coming weeks.
Regards,
Karim Rahemtulla
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Current Portfolio:
Company / Symbol: Toll Brothers (NYSE: TOL)
Option / Symbol: Jan. 06 $35 put (YKW-MG)
Date Purchased: 8/12/04
Current Price: $3.00
Comment: Hold. TS is $2.10.
Company / Symbol: Semiconductor Holders Trust (AMEX: SMH)
Option / Symbol: Jan. 06 $40 call (YRH-AH)
Date Purchased: 7/23/04
Current Price: $1.60
Comment: Hold. No TS.
Company / Symbol: Semiconductor Holders Trust (AMEX: SMH)
Option / Symbol: Sold Jan. 06 $45 call (YRH-AI)
Date Purchased: 7/23/04
Current Price: $0.60
Comment: Hold. Sold call against Jan. 06 $40 position.
Company / Symbol: Ciena (Nasdaq: CIEN)
Option / Symbol: Jan. 07 $5 call (VCB-AA)
Date Purchased: 6/22/04
Current Price: $0.45
Comment: Hold. No TS.
Company / Symbol: Ciena (Nasdaq: CIEN)
Option / Symbol: Jan. 05 $5 call (EUQ-AA)
Date Purchased: 7/23/04
Current Price: $0.10
Comment: Hold. Sold call against Jan. 07 $5 position.
Company / Symbol: Lucent (NYSE: LU)
Option / Symbol: Jan. 06 $5 call (YXL-AA)
Date Purchased: 5/25/04
Current Price: $0.40
Comment: Hold. No TS.
Company / Symbol: Dynegy (NYSE: DYN)
Option / Symbol: Jan. 06 $5 call (YNY-AA)
Date Purchased: 5/25/04
Current Price: $0.85
Comment: Hold. No TS.
Company / Symbol: Placer Dome (NYSE: PDG)
Option / Symbol: Sell Jan. 06 $25 call (YDI-AE)
Date Purchased: 4/1/04
Current Price: $1.10
Comment: Hold. Sold call against Jan. 06 $20 position.
Company / Symbol: Placer Dome (NYSE: PDG)
Option / Symbol: Jan. 06 $20 call (YDI-AD)
Date Purchased: 1/23/04
Current Price: $2.00
Comment: Hold. No TS.
Company / Symbol: Nokia (NYSE: NOK)
Option / Symbol: Sell Jan. 06 $30 call (WIK-AF)
Date Purchased: 2/9/04
Current Price: $0.05
Comment: Hold. Sold call against Jan. 06 $30 position.
Company / Symbol: Nokia (NYSE: NOK)
Option / Symbol: Jan. 06 $22.50 call (WIK-AX)
Date Purchased: 8/29/03
Current Price: $0.30
Comment: Hold. No TS.
Company / Symbol: Chesapeake Energy (NYSE: CHK)
Option / Symbol: Sold Jan. 06 $15 call (WZY-AC)
Date Purchased: 11/6/03
Current Price: $2.60
Comment: Hold. Sold call against Jan. 06 $12.50 position.
Company / Symbol: Chesapeake Energy (NYSE: CHK)
Option / Symbol: Jan. 06 $12.50 call (WZY-AV)
Date Purchased: 7/28/03
Current Price: $3.90
Comment: Hold. No TS.
Company / Symbol: S&P 500 MITT (AMEX: MCP)
Date Purchased: 7/18/03
Current Price: $10.31
Comment: Buy under $10. No TS.
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Bio:
Karim Rahemtulla is the former Investment Director of The Oxford Club.
The editor of The Smart Options E-Report, The Income Trader – A Covered
Call Strategy and The LEAPS Option Trader, Karim is also a regular
contributor to The Oxford Club Communiqué. His highly successful trading
systems use covered calls and LEAPS to boost returns on blue chip stocks,
and during the bear markets of 2000 and 2001, his picks outperformed the
major market averages. Educated in England, Canada and the U.S. and fluent
in several languages, Karim travels the world to find the best investment
opportunities for our members.
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