Happy Holidays Traders! And it has been a happy 2008 for subscribers of
THE JEDI WAY, who have made over 100% trading with Patrice V.
Johnson. This article reviews each and every trade for 2008 and sets the
stage for 2009 - give it a read and consider joining JEDI. Subscribe for only
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Holidays!!!
THE J.E.D.I. WAY PERFORMANCE REPORT
Our initial trading stake of $5000 has grown to $10,454.56 (or more than
109%) since inception of The J.E.D.I. Way Newsletter in February 2008.
Greetings, J.E.D.I.
Welcome to The J.E.D.I. Way.
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The J.E.D.I. Way trades various stocks, options on stocks, options on
various futures and futures.
EXPLANATION OF MONTHLY PERFORMANCE
FEBRUARY 2008
STRADDLED OPTIONS ON THE APRIL 2008 30 DAY FEDERAL FUNDS
FUTURES
In February 2008, The J.E.D.I. Way Newsletter's began with an initial trading
stake of $5,000.00.
The J.E.D.I. Way realized a one month gain of $500.00 for February, 2008.
Thus the green up bar on the Performance Chart for February 2008 (above).
The J.E.D.I. Way's first trade was on the options on the April 2008 30 Day
Federal Funds. Specifically, The J.E.D.I. Way Newsletter conducted a
straddle on the April 2008 30 Day Federal Funds - bought one call position and
one put position. The premise was that this market would move up or down
sharply and that The J.E.D.I. Way would be able to derive a gain from both
positions at different times. However, the put option expired on March 17, 2008
for a loss of $125.00 and the call option was offset for a gain of $625.00
making the total dollar gain in February 2008 of $500.00 before
commissions.
The J.E.D.I. Way account value for the month ending February
2008 was $5,500.00.
MARCH 2008
STRADDLED OPTIONS ON THE MARCH 2008 30 DAY FEDERAL FUNDS FUTURES
STRADDLED OPTIONS ON THE NASDAQ OMX GROUP INC. (NASDAQ GS)
STRADDLED OPTIONS ON THE DOW DIAMONDS ETF (AMEX)
STRADDLED OPTIONS ON THE DOW JONES MINI-SIZED DOW $5 FUTURES INDEX
(CBOT)
In March 2008, The J.E.D.I. Way Newsletter conducted four more
straddles.
The J.E.D.I. Way realized a one month loss of $1,670.98 for March, 2008.
Thus the red down bar on the Performance Chart for March 2008
(above).
However, these straddles did not yield the same results as the one in
Febraury 2008 because the overall market did not move up or down significantly
as The J.E.D.I. Way expected it would for the month of March 2008 as the
straddle on the March 2008 30 Day Federal Funds generated a loss of
$583.38, while the straddle on NDAQ (Nasdaq GS) generated a loss of
$92.00 and the straddle on the Dow Diamonds ETF (DIA) generated a loss of
$108.00 while the straddle on the Dow Jones Mini-Sized Dow $5 Index (CBOT)
generated a loss of $887.60 resulting in a total loss for the month of March of
$1670.98 before commissions.
The J.E.D.I. Way account value for the month ending March 2008 was
$3,829.02.
APRIL 2008
OPTION ON THE MAY 2008 30 DAY FEDERAL FUNDS FUTURES
OPTION ON THE JUNE 2008 U.S. DOLLAR INDEX FUTURES
The J.E.D.I. Way realized a one month loss of $846.65 for April,
2008. Thus the red down bar on the Performance Chart for April
2008 (above).
In April 2008, The J.E.D.I. Way Newsletter traded one option on the 30
Day Federal Funds Futures and one option on the U.S. Dollar Index Futures.
Specifically, The J.E.D.I. Way Newsletter went long one May 2008 30 Day Federal
Funds Put Option and went long one June 2008 U.S. Dollar Index Call Option. Once
again, due to the lack of volatility in the market place for these indices (as
the market was in the midst of forming bases - mostly bearish symmetrical
triangle continuation patterns), both options expired
worthless effectuating a loss of $846.65 for the month of April
2008.
The J.E.D.I. Way account value for the month ending April 2008 was
$2,892.37.
MAY 2008
TOOK TIME TO REFLECT ON TRADES FOR THE J.E.D.I. WAY'S FIRST QUARTER ENDING
APRIL 2008
In the month of May 2008, no trades were placed. This particular month
was used to reflect on The J.E.D.I. Way's trades in February 2008,
March 2008, and April 2008. Thus the blank bar on the Performance Chart
(above) for the month of May 2008. I thought it was important to pause a bit for
my readers and rather than use this month to present trades, figure
out how I can serve my subscribers better in the future. For the
month of May 2008, subscribers received "Trade SetUps" in the place of
"Entry Alerts" for various stocks, options on stocks, and options on
futures for the month of May 2008. Trade Setups provide the
criteria or set of conditions to take into consideration
before placing a trade on a stock, option, or option on future while Entry
Alerts suggest the price at which one may wish to be filled on a particular
stock, option on stock or option on future.
After reviewing The J.E.D.I. Way's trades for the First Quarter Ending April
2008, The J.E.D.I. Way decided upon the following:
(1) Trade the Major Trend of the Market, not the Intermediate
or the minor trend. (Major Trend is defined as a
period of greater than one year, Intermediate Trends is defined as a period
of less than one year but greater than 3 weeks, and the minor trend is
defined a period of less than 3 weeks.) It is the major trend of the market that
is most important to trade.
(2) Cut Losses Short. Place a stop or stop limit
orders behind each option trade that is filled as opposed to letting the
option expire worthless and causing the loss of the entire premium.
(3) Let Profits Run. Raise stop or
stop limit orders when the premium prices rise on the option.
(4) Diversification. Short when the major
trend is down; Buy when the major trend is up. Get comfortable shorting
in a bear market and going long in a bull market. Go with the
flow!
The J.E.D.I. Way account value for the month ending May 2008 2008
remained at $2,892.37.
JUNE 2008
SOLD OPTION ON THE DOW JONES MINI-SIZED DOW $5 INDEX FUTURES
SOLD OPTION ON THE NASDAQ 100 MINI INDEX FUTURES
SOLD OPTION ON THE DOW DIAMONDS ETF (AMEX)
The J.E.D.I. Way realized a one month gain of $1495.00 in June 2008.
Thus the green up bar on the Performance Chart (above).
How was this achieved? (1) The J.E.D.I. Way decided upon trading the
Major Trend of the market verses the intermediate or minor trend of the market
because this is the only trend that is relevant in trading ,(2) The
J.E.D.I. Way learned to cut losses short (by placing stop or stop limit orders
behind each trade) effectuating a automatic dumping or closing of the
position prior to expiration if the option does not perform as expected (3)
The J.E.D.I. Way let profits run (The J.E.D.I. Way raised stop or stop limit
price points when the premium on the option rose and offset the postion after a
certain gain was realized before expiration), and (4) Diversification.
(The J.E.D.I. Way diversified its trading strategy to including shorting the
options, not just buying them)
In June 2008, The J.E.D.I. Way sold short two call options on the
September 2008 Mini-Sized Dow Index Futures and realized a gain of $870.00
and $245.00 respectively, sold short one call option on the September 2008
Nasdaq 100 Mini Index Futures and realized a a gain of $625.00, sold short
one put option on the September 2008 Nasdaq 100 Mini Index Futures and
realized a loss of $185.00, sold short one option on the December 2008 Dow
Diamonds ETF (AMEX: DIA) and realized a loss of $60.00.
The J.E.D.I. Way account value for the month ending June 2008 was
$4,477.37.
JULY 2008
SOLD OPTIONS ON DOW JONES MINI-SIZED DOW INDEX FUTURES
The J.E.D.I. Way realized a one month loss of $75.00 for July,
2008. Thus the red down bar on the Performance Chart for July 2008
(above).
In July 2008, The J.E.D.I. Way sold two call options on the September 2008
Mini-Sized Dow $5 Index Futures and realized a loss of $135.00 and a gain of
$60.00 respectively for a loss of $75.00 for the month of July 2008.
The J.E.D.I. Way account value for the month ending July 2008 was
$4,402.37.
AUGUST 2008
NO GAINS OR LOSSES WAS INCURRED FOR THE MONTH OF AUGUST 2008
In, August 2008, no gain or loss was incurred for the month of August
2008. Thus the blank bar on the Performance Chart (above) for the month of
August 2008.
The J.E.D.I. Way account value for the month ending August
2008 remained at $4,402.37
SEPTEMBER 2008
SOLD OPTION ON THE SEPTEMBER DOW JONES MINI-SIZED DOW $5 INDEX
FUTURES
STRADDLED OPTIONS ON THE SEPTEMBER 2008 30 DAY FED FUNDS FUTURES
BOUGHT 10 SHARES OF PROSHARES ULTRA SHORT STOCK, TICKER SYMBOL
"SIJ"
In September 2008, The J.E.D.I. Way realized a one month gain of $1722.56.
Thus the long green bar on the Performance Chart (above) for the month of
September 2008.
In September 2008, The J.E.D.I. Way sold short one (1) September 2008 Dow
Jones Mini-Sized Dow $5 Index Futures and realized a gain of $945.00. The
J.E.D.I. Way also straddled options on the September 2008 30 Day Fed Funds
Futures - that is The J.E.D.I. Way bought one September 2008 call option and one
September 2008 put option on the 30 Day Fed Funds and realized a gain of
$604.66. The J.E.D.I. Way also bought 10 shares of Proshares Ultra
Short Stock - ticker symbol "SIJ" and realized a gain of $172.90.
The J.E.D.I. Way account value for the month ending September 2008 was
$6,124.93.
OCTOBER 2008
BOUGHT 50 SHARES OF TICKER SYMBOL "IMA" - INVERNESS MED INNOVATIONS INC
COM
BOUGHT ONE (1) 30 DAY FED FUNDS NOVEMBER 2008 98.625 CALL OPTION
In October 2008, The J.E.D.I. Way realized a one month gain of $2,229.87.
Thus the long green up bar on the Peformance Chart for the month of October
2008.
On August 18, 2008, The J.E.D.I. Way bought 50 shares of Inverness Med
Innovations Inc Com (Ticker Symbol: IMA) and sold it on October 2, 2008 at
$29.00 for a loss of $312.00. The J.E.D.I. Way also bought one (1) 30 Day
Fed Funds November 2008 98.625 Call Option at $0.015 and sold it on October 30,
2008 at $0.63 for a gain of $2,541.87.
The J.E.D.I. Way account value for the month ending October 2008 was
$8,354.80
NOVEMBER 2008
STRADDLED THE 30 DAY FED FUNDS OCTOBER 2008 OPTIONS
STRADDLED THE 30 DAY FED FUNDS NOVEMBER 2008 OPTIONS
STRADDLED THE 2 YEAR TREASURY NOTE DECEMBER 2008 OPTIONS
In November 2008, The J.E.D.I. Way realized a one month loss of $32.80.
Thus the little horizontal red bar on the performance chart (above) for the
month of November 2008.
First, The J.E.D.I. Way's purchase of the 30 Day Fed Funds November 98
Put on September 21, 2008 expired on November 28, 2008 for a loss of
$83.84. Second, The J.E.D.I.'s Ways purchase of a straddle
position on the 2 Year Treasury Note December 2008 options on October
20, 2008 expired on November 21, 2008 for a total loss of $78.14.
Third, The J.E.D.I. Way's purchase (by exercise) of one long position on
the 30 Day Fed Funds October 2008 Futures at 99.00 was
offset at 99.03 on November 4, 2008 for a gain of $129.18.
The J.E.D.I.'s Way Account Value for the Month Ended November 30, 2008
was $8322.00.
DECEMBER 2008 (UP TO DECEMBER 22, 2008)
STRADDLED THE 30 DAY FED FUNDS DECEMBER 2008 OPTIONS
On December 22,2008, The J.E.D.I. Way realized a gain of $2333.52. Thus the
long horizontal green line on the performance chart (above).
On October 17, 2008, The J.E.D.I. Way straddled the 30 Day Fed Funds December
2008 Options at a total cost of $0.035 and offset the call option at $0.58 for a
total gain of $2333.52. The J.E.D.I. Way will let the put option part of
the straddle expire.
The J.E.D.I. Way's Account Value as of December 22, 2008 is $10,454.56.
__________________________________________________
THE J.E.D.I. WAY'S INITIAL TRADING STAKE OF $5,000.00
HAS GROWN TO $10,454.56 SINCE ITS INCEPTION IN FEBRUARY 2008. THAT
IS UP MORE THAN 109% SINCE
INCEPTION.
____________________________________
Until next time, fellow J.E.D.I., I wish you much success as you
trade The J.E.D.I. Way.
And may the force of voilatility be with you all, always.
Best Regards,
Patrice V. Johnson
E-mail : Patrice@stockbarometer.com
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strategies that are mine and not those of the company and is made available to
anyone interested in my analyses, statements, opinions, beliefs, and strategies
made on stocks, options, futures, or options on futures. Information,
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for informational purposes only. I do not represent that the information,
analyses, statements, opinions, beliefs, and strategies contained in this report
or future reports and newsletters are accurate or complete. Internet subscribers
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in this report is not a recommendation to buy, sell, or hold any stock,
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Johnson, expressly disclaims all liability in respect to actions taken or
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