Iron Condor Result

On Wed, the IWM Iron Condor was closed for a total profit of $0.75.
Sell July IWM 87 call for 0.01
Buy July IWM 85 call for 0.1895
Sell July IWM 79 put for 0.03
Buy July IWM 81 put for 0.089
Total credit =$0.75
I risked $2 to make $0.75 or a 37.5% return for the trade. This trade was only held for less than one month. Not bad for one month return.

IWM Iron Condor

On June 19, I started a short iron condor on IWM.
Buy July IWM 87 call for 0.46
Sell July IWM 85 call for 1.13
Buy July IWM 79 put for 0.51
Sell July IWM 81 put for 0.83
Total credit =0.99


As of today,
87 call is worth 0.045
85 call is worth 0.405
79 put is worth 0.03
81 out is worth 0.055
It looks like I need to close out the 85 call soon or face expiration in the money.

More to come after expiration friday.

Magic of Compounding!!!!

Compounding is wonderful. A 10% return/ month will increase to a sizeable amount after 2 years.
10%/month annualized is 285% return! I like that kind of return.

Here is a example of 10%/ month compounded monthly.

Time	Amount
Month 1	$10,000
Month 2	$11,000
Month 3	$12,100
Month 4	$13,310
Month 5	$14,641
Month 6	$16,105
Month 7	$17,716
Month 8	$19,487
Month 9	$21,436
Month 10	$23,579
Month 11	$25,937
Month 12	$28,531
Month 13	$31,384
Month 14	$34,523
Month 15	$37,975
Month 16	$41,772
Month 17	$45,950
Month 18	$50,545
Month 19	$55,599
Month 20	$61,159
Month 21	$67,275
Month 22	$74,002
Month 23	$81,403
Month 24	$89,543

Factors I look at

I use a mix of Techanical and Fundamentals to pick a good stock. Below is an explaination of some of the factors I use.

MACD - a chart that represents 3 moving average curves. Great to show how the stock price has moved in the past few days. It uses Exponential Moving Average, in simple terms an average of the closeing price. Usally calculation based on 26,12,9 days moving average. A bullish crossover occurs when MACD moves above its 9-day EMA and a bearish crossover occurs when MACD moves below its 9-day EMA.

Stochastics -factors in the price trading range for the day. In general, if the stock end near the high of the trading range, indicates a bullish trade day. Bearish for the opposite.

RSI -Relative Strength Index based on the number of up and down closing. RSI of 30 indicates an oversold or undervalued price. RSI of 70 indicates overvalued, maybe a time to sell.

I never really buy a stock based on use one techincal indicator. 2 of of 3 need to bullish or a buy signal before I buy a stock.

Growth Rate- compounded annualized rate of growth of a company's revenues. I prefer 15% growth

PE- Price divided by Earnings per Share. I like stocks with 25 or less. In some cases a high PE is good if I only plan to invest short term

debt:cash ratio- A high ratio means that they have too much debt and is leveraging to much money to finance operations.