Closing Bell

We are drawing near to the close of a long week. I imagine that most of you are looking forward to this as much as I am. The market seems reluctant to post gains, and that is fine by me. I am just pissed to see all these reporters at CNBC getting any credit for finally getting a pullback in this market after calling the top for over the last year. Do you find it as hard as I do to get financial commentary from reporters as opposed to traders?

By the way, I have a few more photos to add to the OA scrapbook. First is a Boston user group retreat. Photo was sent in by Lisa V.

Next is a photo from John Allen (from John & Casey). He came out to Utah and was kind enough to forward this photo. Thanks John!

By the way, I'd love more photos. It's nice to make this a more personal atmosphere.
Heading into next week, I like the idea of creating a post about trading VIX options. I want to set the record straight, and this will give me some ammo to look forward to writing about on Monday morning, in the meantime obviously, stay away from them.
It's been one hell of a week. I am going out for a Bloody Mary & a steak sandwich.

Recommendation: I'll see you on the darkside of the moon.

Long: Pink Floyd

Short: Trading the VIX

Loved the new vidio Jeff, Awesome...Nixon, Pink Floyd and KABOOM.................

Is that Sanjaya from American Idol in the back of that first photo?

What a collapse at the close!

Let's hope that is the last gasp. I made ground up today but like the market better going up.


Good video for the end of this week. Kinda how I'm feeling at the moment.

Don't have the ingredients to make a Bloody Mary with my lunch but I can open a bottle of wine and I actually have leftover steak. Maybe not as appealing as a fresh steak sandwich but you've given me some inspiration for lunch.

Once again, thanks for all your time and effort you put into guiding and teaching us.


Good to see you are still here Michelle!

Have a good weekend everyone.


The video, a little PCP and some POT and I will be back at college temporarily...

Have a great weekend all!


I’ve been away, although not without trying to keep up with you guys, hopefully later next week after my ‘duties’ are complete I should be able to visit more.

Now as “The Consultant”...

And with respect to our Phantom Poet, who does a great job with the certainly to rival Raimo, I have not forgotten! You are a worthy adversary and my hat is off to you...alas...“Das Spiel ist aus”, for those who don’t speak Deutsch (German) “the game is over” or “The Jig is up!”

In my absence from the blog, the hunt has continued, although it really didn’t take long as many mistakes have been made along the way. I could not believe he handed me his identity very quickly...I informed my ‘client’ and we chose not to disclose this person who chooses to remain in the Closet...I do feel sorry for his wife and kids (the big ones and the ‘little’ ones)!

So now the question is whether we tell everyone or keep his secret, so that he can continue to obsess others? This is no ploy...and with the clues I've left, you should know that I do indeed you can come clean by sending a message to both Raimo and me...otherwise we’ll have to see!

Option Addicts-

I hope you all have a great weekend.

Michelle, I'm glad you were able to work things out and continue forward.

Bob, you're getting there. Awhile back, I spent a few months utterly frustrated by my trading and the market and then it all got better. It was like something clicked into place.

Raimo, I'm glad to be back to read your witty poetry. And now you have someone to banter back and forth with.

Brett, missed your sage advice while away and thank you for sharing.

Doji Girl, go beat those drums.

Chris, missed your verbal wit.

I read an article the other day and it was about passion. Chris Gardner (the man whose life story is portrayed in the movie 'The Pursuit of Happyness') was discussing how important passion is to become successful. It's not about what you're doing but the passion you have to do it. Most entrepreneurs don't seem to discuss their business as much as they discuss the passion that drives them. I think that most of you on this blog have that drive, that passion and you will be successful. Remember that.

Once again, have a wonderful weekend. You all deserve the break.


Nope, that's not Sanjaya, it's a new Investools student who "got it" and is walkin' the walk after only 6 weeks.

The rest of us have been around for a bit longer, but we range from 2 years to 6 months as students, but we're all trading full time.

This was our first year at Camp Profit as a group... We had a great time!


It is of course great to have you back, I have not forgotten!!!

As for the Phantom Poet, his (they?? LOL) identity is no longer a mystery.....

Next week however, time to focus on trades, what will the market bring us? We are at DEFCON 3, LOL....

Chip, great work....

The poet exposed
But not yet revealed
this mistakes that were made
your fate was sealed

Brett..thanks for a great week of trading, see you on Monday.

All week is certainly going to be wild...

strap in....

Now, yuengling time..

The DOW and S&P are at support, so we may see the market head up Monday if this is just a correction. However, the NASDAQ is not at support. Just a warning that if the DOW and S&P break that support, we could be in for more bears.


Wow, what a week. Ironcially the last two days have been the best two days of my trading career. I got stopped out of 75% of my calls on Tuesday with difinitive and painful support crosses giving me a pretty large red day. Luckily that got me out of the last two days and let my puts blast off while my remaining calls try to tred water in a draining pool. I hate to feel so good when I know others are hurting, but I'm going home for the weekend to celebrate.

I couldn't agree more about Passion. It's why I do what I do, be it trading, drumming or dancing.

I want to hear more about Camp Profit. Is this your local user group or is there really such a place? It sounds fun.

So as this week and for the most part the month comes to a close I see that I am doing better than I thought. This week was frustrating because I had to give back some gains but overall for the month my account is up 10% and that includes this week where I gave back 1.5%. I am grateful to Jeff, Brett, Raimo and the rest o'youze for keeping us chugging along.

Now I'm outta here to bang those drums!

I will send you an OA tank top photo sometime this weekend.

Ironic Senor Kohler,

I will be having 2 portions of Beluga, the lobster thermidor, and 2 bottles of Dom Perignon.

Of course I will be having it in Cabana 1.

Why? Because I know that is were my mouth will be.

Looking forward to your Trading the VIX masterpiece next week.

Do enjoy the weekend!


Quite a roller coaster week. Really super posts from everyone!

Glad you're back, Michelle. It wouldn't be the same without you.

Everyone have a great weekend.

This comment has been removed by a blog administrator.

i can't believe we are getting SPAMED!!


Thanks Jeff and everyone else on the blog....I really don't think I could have made it through this last week if it wasn't for all of you! Thanks again!


I'm glad things worked out Michelle....Welcome back!


Hi Jeff & Friends, I am a long time reader, not much commenter, subscriber to your blog.

I felt strongly compelled to comment you your 7/26 post.

" is times like this where the market has caught some of us doing something we shouldn't have been doing. Perhaps we were overtrading? Not properly positioned, too much exposure, risk, etc. It is times like this where a lot of traders drop out or decide that trading isn't for them. I understand why, because I have been faced with that choice a number of times in my career."

Those of you, who read this… listen, take note; heed the warning – On two occasions I have been there.

New to the game, never had a long win in my life so I was a put maniac… 8/15/06 – I Lost 11% of my trading account that day. Fear and depression set in… It took me through to end of Jan 07 to get back in… yep… that’s right, right at the top.

After regaining 4% of my account, I was a call maniac… 2/27/07 – I lost 13% of my account in the first 30 seconds of trading that day (The day before I was up about 25% on my calls). I remember the morning like yesterday. I was at the SF Bay Bridge metering lights @ 6.25am PST and over the radio the market commentator on KCBS goes “Oh dear… the Dow futures are 160 points down at the moment. It appears that the market will get off to a rocky start today.” I got to work – All my stocks had gapped down or punched through my stops… my account was in shatters. The funny thing was that I took it pretty well. It was the reaffirmation of my 8/15/06 lesson learned. Again, Fear and depression set in… This time I wanted to cash in my account, but my wife told me that I did that the 21% of my account that I spent learning my lessons would go to waste! (You just have to love her… she is the best!!!) It took me to 6/14 to get back into the Market. yep… again, that’s right, right at the top

This time it was different. My account was diversified, my calls (in strong industries held support or made money) my puts (in weak industries busted through support and made money). By 7/23 my account was up approx 7%. On 7/24 I was stopped out of all my calls… I lost 2% of my account that day… The next 2 days my puts gave it all back.

I am in cash now and waiting for the market to give me some direction – I missed MCK’s break today - my day job got in the way. Not to worry, one thing that I have learned is that there are always trades out there if you are patient.

For those of you who have had few (really) bad days, don’t give up. Stick with it, We will be great trades soon enough.

“Just know that becoming a successful trader is something that can be accomplished, but it won't happen overnight.”

Thanks Jeff for your guidance. You are an inspiration.

Cheers & Thanks again,

David (Option addict – Traderdave –

P.S. Sorry about the long post (I hate it when people do this… Sorry!)


Well worth it, thanks for sharing. I admire your determination, welcome to the club!


Dave, let me be the second to welcome you to the blog. You got a welcome from the MAN himself and it don't get better than that.

Jeff, once I get home I will get you a picture or two.

What an interesting week and I need to learn as much from it as I can, study time.

Michelle....welcome back !! glad things are worked out, just take baby steps....they say slow and steady wins the race...

TraderDave....great post


Good Friday evening (or Saturday morning depending on where you reside) Addicts!

As I sit here having just listened to tonight’s Marketcast and getting ready to take on Jeff’s Mastertalk from yesterday, I figured I’d see who has had the pleasure of tasting any of the many craft beers from Oregon. There are so many good breweries! This place is incredible! Right now, I am drinking a Deschutes Brewery Twilight Seasonal Ale. It is their summer brew that I feel is unparalleled. The Brewery is by far my favorite, and I’ll go as far as to call it, the strongest craft brewery in Oregon. All of you craft beer drinking Oregonians out there know exactly what I mean. They don’t brew a poor flavor. In fact they don’t even brew a marginal one, they are all great! It doesn’t matter what your fancy is, you will enjoy them all!

My favorite breweries or places to drink beer in Oregon, McMenamins Edgefield, any McMenamins for that matter (, and Mt Hood Brewing Company (relatively close to home)… Let’s hear everybody else’s favorite craft beer and establishment to drink beer.

Now I need to get another BEER and hit the MT!

Recommendation: Drink plenty of Oregon’s many craft beers. If you can’t find any, come visit, Oregon is one of this country’s best kept secrets.

Long: Deschutes Brewery

Short: Every Logan that ever existed in my woodpile and mass produced beer.

Have a great weekend. Not that any one cares, but I will be checking in often because that is what us Addicts do. We just can’t get enough.

I apologize for the length, but good beer can do this to me…

Trader Dave, great stuff!

What was Logan saying about checking in because we're addicts... I guess I'm busted!

I loved your post Dave. I'm glad I checked the blog before I finally hit the hay. Some more great writing to think about over the weekend. I promise I won't be back again until Monday morning. ;-)


nice job trader dave

logan we get a fair share oof your beer over here in Boise

I am retaking basic options trading room right now so I peeked in.

trader Dave welcome to this whacky group.

liz get some sleep

cheers Arty

Trader Dave ... superb stuff man and great to see your experience written out! It reminded me of balance and patience ... Well done and welcome!

And yes we are ADDICTS ... why would we be checking this thing at all hours of the weekend when the darn market is closed ... Go figure! :)




Great post. thanks for sharing... It's during posts like yours that we realize we're not alone. I know from what you speak. I've stayed out of the market for long periods of time to recover from devastating losses, but I never lost my interest, nor my confidence in my ability to learn how to do this.

Welcome home.

I agree--great post from Trader Dave. It continues to help hearing that there are several other people out there that have blown up their accounts/lost a lot of money. I went back to practicing for several months (which I still do), and just recently got back to trading with "real money". I am finally starting to make some of my losses back... a little bit at a time...

Yes, I am definitely addicted. To the blog and to trading.... So much so that it gets in the way of the job that is supposed to be supporting me for the time being--which is a mortgage broker. Nothing like being addicted to trading (which I can't even come close to living off of at this point), while working on 100% commission in the mortgage industry which everybody knows is in the toilet at this point.

Anyway, back to working loans for now, then heading home to work trading stuff--with volatility being the subject for today! Pretty bad when I'm more motivated to study trading stuff on a Saturday afternoon/night. I have been told that I have become obscessed.... I will definitely be ordering my Option Addict shirt soon!




Welcome Dave! Yes, we are a whacky and addicted group, many with other 'jobs' that get in the way of our real passion - trading.

I've been told that I'm obsessed as well. I look at that as a Good Thing.

What about the Beatles White Album? That was created before Jeff was born!

That was a great post traderdave. I'm sure everybody can relate to your ups and downs in their own trading. I know the last week has been heck on my own account due to the fact that I was overloaded on the bullish side. I tried to find good entries on the short side but most everything had fallen so fast there were not too many good entries at or near resistance.

The most important lesson I have learned is trying not to out guess what the market is going to do but be prepared for what the market brings you.


Is that quote from the movie "Valdez is Coming" with Burt Lancaster?

Jon P.
OC, Oregon




Thank-you so much for the kind words of encouragement in your Thursday post-your sincere desire to help us succeed is very apparent. At the risk of embarrassing you, you are truly an exceptional person. I gratefully accept your invitation to "stick with you" and learn to trade successfully.


So glad to have you back. You are missed when we don't hear from you.

And to all the addicts in this community, thanks for being here.
It is Sat afternoon and I am writing this from my husband's hospital room. Twice in the past 5 wks, 911 had to be called due to a serious heart problem. The first time, while waiting for the EMS crew, I had to do mouth-to-mouth as he had stopped breathing. Thank God that I am a CCRN and was there when it happened. It has been so therapeutic for me to be able to be here in the hospital with my laptop and continue to read the blog, trade and feel as though I am continuing to learn and move forward. I hope to be able to meet some of you one day. God bless you all.

I will keep you in my prayers.
You can e-mail me if you'd like to talk or need some encouragement.

I am sorry to hear that.



That is horrible news. Thank god he's in the hospital and in good hands. Make sure he doesn't have CNBC on this week!

Jon P-

If Jeff posts something you don't quite understand, it's likely a movie quote.

Honestly, the Option Addict Store should include links to the DVDs of Fletch, Rounders and the Big Lebowski. They're essential requirements for this blog.


I can only imagine what you must be going through. All my thoughts for the best for your husband.



I know this is a tough time for you. If I can help, you know I'm only about 30 minutes away by car.

Our hearts and prayers are with you and your husband. Glad the blog is some comfort. I bet Jeff never imagined that when he started this.


As medical personnel we are trained to help those in need, we don't usually think that we'll ever use it for our own loved ones, glad you were able to be there! Best wishes and our prayers to your husband in his recovery and you at his side. God Bless and keep the faith!

WOW ,, checking in after a hellish 12 hour shift,,,i am a true addict

Traderdave welcome aboard and great post

Judy,,, as a fellow CCRN i can sympathise with you,,,I too had a horrible week personally and in the markets,,,i got a phone call from my mom on tuesday that my dad was acutely confused,,,he is only 68 with no past medical history,,,well, i jumped in the car and headed over there,,,,helped get him to the hospital....i actually had to make the diagnosis of hypertensive encephalopathy,,,thank GOD the ER doc was someone who I work with regularly,,,he listened,,neurologist listened and we got the right drips going,,,i'm happy to say he has recovered with no permanent damage to him....i on the other hand jumped in the car without taking time to place stops,,,,needless to say my account suffered much worse longerterm damage than my father after being in the hospital with him for 3 days with hardly any hard stops in place,,,but alas ,,,it is just money. You are in my thoughts and prayers,,,thank heaven you were there in his most needy of time, it sure comes in handy knowing exactly what to do in an emergency,,,now if that auto pilot will only go on with trading

My Best

Hey everyone,

Here's is a little reading material I found interesting/comforting/kind of funny after visiting the Money Show here in San Francisco. My favorite is buying Price Headley buying HOKU right before earnings.

Should be an interesting week ahead.
Ryan in SF
aka: The Conference Headphone Wearer

Hi ADDICTs. I have been listening to the Market Cast since Feb this year and just starting looking at Jeff’s blog. Looks like a tight group. I hope to learn a lot from you all. Thanks to DAVE for the great post. I started trading this year and haven’t made much ground. My account has gone up and down… but down big last week. I got distracted and was in an un-balanced portfolio to the bullish side. I am not quitting though… I know I can learn to be a better trader and create a better personal system.

In my prayers.

Judy - So sorry to hear that news but SO THANKFUL you were there and saved him. My prayers are with you and your husband as you go through this. We all take good health for granted!

Sue - glad your Dad is OK ... Don't worry about the bucks lost with no stops - you will trade that back in no time. Much easier than being late for your Dad!

What a group on this blog! All aspects of life come through here but decent caring people seems to be a theme -which makes me want to be a part of it. I think it has to do with our Captain - Mr. Kohler ... he leads with care and concern and that sets the tone for this thing. Thanks Jeff!

Studying setups today ... getting ready for an interesting week ahead. I've been trying this weekend to wrap my head around changes in my strategy that I need to make in order to adapt to this market ... I am adapting because I won't let this market get me ... I'm still 'getting it!"

Dear Fellow Addicts,

Thanks for all the touching words and wishes. Each message was like receiving a bouquet of flowers.


I am so glad that you were able to be there for your father. How fortunate he is to have you as a daughter.

Michelle and Doji-girl,

Thanks for your kind offers. Mac is doing much better today.

May I lovingly suggest that everyone do a Google search for "CPR" -it will show you helpful diagrams on performing basic CPR.
Print it and hang it up somewhere-
it is now suggested to alternate 2 breaths with 30 chest compressions when performing CPR alone. Of course, taking a basic CPR course is best but even these diagrams may help you save a life. As Chip suggested, you never know when a loved one may need you to know this.

Again, thanks for all the support and encouragement.



Thank God you were home, trained and emotionally strong to deal with such a stressful ordeal.
My family and I will hold yours in our prayers.

I wish you all the best and your husband a speedy and healthy recovery. attention...

CMG is at support and earnings coming up. Last earnings it did well. I am thinking of playing it.


Lifting you up in prayer here in NC. Thank-you for the reminder to know brush up on the CPR technique. :-)


Word of advice on playing CMG for earnings, don't do it. Just because it jumped up last time is not a good reason. Case in point:
NTGR. Popped up $5 or more for the past 2 quarters so I decided to play it again this time. Fortunately, I was in 2 weeks prior and had a nice run up and took all of my money except for 2 contracts off the table before. Those 2 contracts are now worthless as the stock dropped $8 (like 25%!!) before it even opened on Friday.

CMG has already said that it's profit margins were hurting due to increased costs of ingredients. I wouldn't touch it. If it does go up, you missed it. Big deal. But if it goes down and you're in it, it's a VERY big deal. Plus your volatility is so high now it will cost you a LOT to get into this trade.

Have you ever seen a spleen that large?


Judy and Sue...thank goodness you both kept a cool head and knew what exactly what to do under pressure. Your husband and father will be in my thoughts and prayers.

You are right about the DVD's in the bookstore. In addition to that I think there should be an entry exam to the blog with essay questions on these greatest comedies of all time.


Can I borrow your towel for a second, my car just hit a water buffalo?

Welcome and get ready to learn. This really is an amazing group. Generous too!

Judy and Sue,
Keeping you and your families in my prayers.

I was catching up on the blog from Thursday (yeah, I get a little behind at times) and someone said in closing, "See you tomorrow."
I think that's going to be my motto (or, one of my mottos).
It's a nice, simple affirmation of persistence.
Hope everyone's had a nice weekend and is ready (or should I say "strapped in") for the week ahead.

Doji Girl,
Thanks for the warning. I'll heed your advice. If it jumps up, oh well. Don't want to take the risk.


I checked out Raimo's suggestion on EQIX... can anyone suggest a reason why the options are so undervalued. Also, volatility is mid-30's, would this be a better spread case. Say maybe buy the $90 strike and sell the $95 Call??


I apologize if this has been asked before, but is anyone else having trouble logging on to the Invest Tools website. Even when it comes up and I log in, it finally times out. I have e-mailed support, but haven't heard a word from them yet.

Barbara from Iowa

Glad to be home and back to a faster internet speed.

Sorry to hear of all the medical emergencies and I hope that is our quota for this community for some time. You and your families are in our prayers.

After listening to the CAST and then reading Mike Coval's market commentary I see a theme of looking for relative strength (or weakness). I have not done this really although it was covered the in the IT training. I am looking for industries on the big chart that are strong and held up well last week (low volume and small down move, flat or up). Also looking for weak industries that got hit hard for diversity. This resulted in a large list that I have to evaluate to get a more manageable group of stocks. Any guidance would be greatly appreciated.



i am able to get into investools ok,,,that happened to me once before a couple weeks ago and it was a major line going out of Wisconsin to the west,,,it might be you internet provider

thanks for all the prayers and well wishes,,this community is awesome

Judy,, I hope your husband is on his way to getting better,,,we are here when you need us.

i saw a article on Bloomberg that ABN got a higher bid....Scottish Royal Bank i think,,,,could this be the catalyst for a bounce off of support? if not i am prepared to get really bearish


Bob (and Pam),
Just got through doing CE for my certification and was checking the blog. I did some studying today. Here are some stocks that I show are at support, BUT I am not going to do anything until I see if the market stabilizes. Hope this helps.
CAM, PCP, NOV, AAPL, MMM. These are bullish. I am in two bearish and haven't had a chance to look for bearish plays that are at some level of support. If anybody has some bearish plays that are not already played out, I would be interested in evaluating them to maybe add to my stocks to watch.

Good night and see you all tomorrow.


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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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