BOUGHT +1 FRO 100 NOV 08 35 PUT @4.20

[caption id="attachment_690" align="aligncenter" width="500" caption="Frontline Ltd."][Frontline Ltd.][][/caption]

I covered my short put shorted at \$3.90 this morning for \$4.20 now. Fee \$7.5. A loss of \$45 including commission. The intraday upmove lacked volume as you can see on the left graph. Furthermore, S&P failed to break 920 and is struggling at the 900 range.

I think I will wait for FRO to clear the triangle (right graph) before committing again. It is too close to the neck line at \$30.50 for comfort, because it could very well break below at this point. Again, because today's price volume action lacked enthusiasm.

However, I am keeping my SAP position because that graph shows accumulation price-volume confirmation. And I'm barely down in that trade (i.e. SAP is holding on despite market weakness).

[Frontline Ltd.]: http://traderpau.files.wordpress.com/2008/11/2008-11-11-fro3.png

SOLD -1 FRO 100 NOV 08 35 PUT @3.90

[caption id="attachment_683" align="aligncenter" width="500" caption="Frontline Ltd."][Frontline Ltd.][][/caption]

Pretty much the same reasons as my SAP trade executed at about the same time. I am short term bullish on the broad market and picked these two companies (SAP and FRO) as my champions to ride the wave.

I tried to go long last Friday with FRO but were stopped out. Today is another day and another dip in the water. The orderly selling in the market is acceptable so far. We could either drift lower or rocket up higher. I have lowered my strike to 35 (used 40 last Friday) to reduce the risk.

Upside: Unfilled gap above \$41. Reverse head and shoulder forming.

Resistance: 50 dma and head-shoulder neck of \$40.

Downside: Still in downtrend. Broad market may still be in down leg of trading range to 850.

Support: 10/28 high of \$30

Bottom line: FRO is trading at \$32. Upside/downside ratio is about 4 to 1. Plus I'm short term bullish on the broad market.

[Frontline Ltd.]: http://traderpau.files.wordpress.com/2008/11/2008-11-11-fro.png

Covered SLW, FRO, and WFC short puts

[caption id="attachment_672" align="aligncenter" width="500" caption="S&P"][S&P][][/caption]

[caption id="attachment_673" align="aligncenter" width="500" caption="S&P intraday"][S&P intraday][][/caption]

The market broke my intraday support line today (pink line, first graph). What appeared to be a good Monday turned out to be very disappointing. I cleared the last of my short puts (i.e. long) about 5 seconds before the close when the market gained some footing. These plays are purely for risk management purposes, each individual stock looks ok to me to be accumulating at this level. But I'm in for the swing trade and it haven't worked out. So I'm selling them all mainly because the overall market looks weak.

To illustrate, today's intraday market data looked particularly bad. I thought the market would turnaround after the TICK retested a -1200 low for the day at noon on lower price, but the price continued to drift down afterward. Then the 2pm rally didn't even break 930 (resistance from yesterday) too. That was the last draw for me and I decided to exit all risky positions from then on to minimize my risk. So I covered all my options into the close.

The first of which was Dec SLW 5 put at 15:48 for \$1.70, which I bought at \$1.55. I still have my 166 shares of SLW, so it's an obvious choice for me to unload the options. I don't want to be too heavy on precious metal for now. SLW is still holding the \$3.4 level and marked a higher low in the afternoon. So it's actually looking good.

[caption id="attachment_674" align="aligncenter" width="500" caption="Silver Wheaton"][Silver Wheaton][][/caption]

Next I sold FRO at 15:59:27. The low of today looks like a test of a daily trendline, pink line below on the right daily graph (Update: I forgot to attach the graph. I added it a day later below). I normally would have only sold if it breaks it, but again, the market looks bad. So a retest of \$30 (highest volume in recent months) seems possible. I covered the FRO short puts bought at \$7.90 for \$8.00. On another note, I mistakenly placed a sell order on the put rather than a buy (to cover) at \$8.10. So I quickly covered that accidental trade at \$8.30 regardless of that fact that FRO was moving up at that time. I've learned my lesson in accidental orders and would cover immediately regardless. I won't try to convince myself like my CAF trade.

[caption id="attachment_686" align="aligncenter" width="500" caption="Frontline Ltd."][Frontline Ltd.][][/caption]

[caption id="attachment_675" align="aligncenter" width="500" caption="Wells Fargo"][Wells Fargo][][/caption]

I covered my Nov WFC short put bought at \$3.60 for \$3.00 at 15:59:55. Fee \$7.50.

I almost didn't want to give up my WFC position. It was the strongest and the one most profitable of my Friday's swing trades. In particular, last Friday's turnaround has by far the most volume in several months. The \$28.0 support looks almost impenetrable. Indeed, today's low of \$28.04 looks safe and we only tested it at very low volume. Indeed, I really don't think we'll see this low again in the short term. Looking at this more carefully now, maybe I should leave it open ... Oh well, I can always get back in.

[S&P]: http://traderpau.files.wordpress.com/2008/11/2008-11-10-spy.png [S&P intraday]: http://traderpau.files.wordpress.com/2008/11/2008-11-10-spxintra.png [Silver Wheaton]: http://traderpau.files.wordpress.com/2008/11/2008-11-10-slw.png [Frontline Ltd.]: http://traderpau.files.wordpress.com/2008/11/2008-11-11-fro1.png [Wells Fargo]: http://traderpau.files.wordpress.com/2008/11/2008-11-10-wfc.png

SOLD -1 FRO 100 NOV 08 40 PUT @7.90

[caption id="attachment_637" align="aligncenter" width="500" caption="Frontline Ltd."][Frontline Ltd.][][/caption]

Bullish position by shorting puts here. I am using a NOV options because I want to keep this for the short term. I would like to unload bad positions later on and scale into FRO shares since I think it's worth holding for the long term. Why? 35% dividend yield! I doubt the dividend can maintain at this level in the future, but even at half of current dividend, it's still a decent buy at this point.

Upside: Max pain at \$45 for Nov. Price-volume looks good, like we tested 20 dma \$32.2 level just now on low volume. Stock looks to be in uptrend.

Resistance: \$42

Downside: Broke 20 dma at about \$32.2 yesterday. Still at critical level around \$32. Could just as well break down from here.

Support: \$31

Bottom line: Simply a good risk/reward ratio for me to take a position here. The chance of us moving up here in the broad market is better than if we go down. I intend to hold this until at least Monday. Mental support just below support.

[Frontline Ltd.]: http://traderpau.files.wordpress.com/2008/11/2008-11-07-fro.png