Trading Notes

(c) F. Bruce Abel


Much fretting over little, little, big, little losses in the new year. After a break-even year where I was for sure putting money into Schwab's hands over a lot of $8.95 low commissions, and a few higher ones involving options, $8.95, plus $0.75 per contract, I took a few swings on options in January (upside) and my account is down a few thousand. With my confidence level accordingly.

OK. I've found my perfect balance for (now) in my $46,500 Schwab account:

5 April 60 P&G calls

500 TIVO

The rest cash.

The five calls are under water but I started the week with 10, then briefly 20 (and used a secret vodoo procedure to try to force the market) and got out of 15 of them as I could not stand the press. So I'm comfortable going down with the ship on the five Procters in April. And sleeping at night.

Never owned or traded TIVO before, I believe. Having appreciated and heavily-used their thrilling system at home, I've been waiting for TIVO stock to shine, without studying the patent case which made the stock shoot up this week. So, no, I did not share in the shoot-up and I am in at a greedy $18.08 (premarket Thursday I believe).

But with this two-pronged position I think I can keep calm and not check the market 20 times a day. Which leads to overtrading, if there is such a thing.

I really want to build up a position of 1000 TIVO but after placing test orders below the market premarket for another 500, I pulled the orders and got busy during the day on legal things -- I'm a litigator -- and didn't complete the purchase.