SIZZLE Mailbag No.1 Unusual Options Activity Part I
stock market game paper
1. Stock Market Game Report 1
Stock Market Game Report
Fina 4200
Jacobo Kilgore
Doctor Saxena
December 2, 2015
Certificate of Authorship: I certify that I am the author of this paper and that any
assistance in its preparation fully acknowledged and disclosed in the paper. I have
also cited any sources from which I used data, ideas, words, either quoted directly
or paraphrased. I also certify that this paper was prepared by me especially for this
course.
2. Stock Market Game Report 2
Stock Market Game Report
The rules were to start with $100,000 and either invest it in the stockmarket by buying and selling stocks
or I could leave the money alone in the account and let it build interest. I choose the path of obtaining greater capital
through the stock market. At the beginning I had few strategies,since I was a novice, but I would obtain new
strategies along the way. The way I picked my stocks evolved throughout the months changed though out the
months. At the end, I had finished with a total cash value of $93,847.39, I had a loss of -$6152.61, and I managed to
capitalize on my mistakes, by learning from them. Overall, it was an incredible experience being able to applying
different strategies,picking and watching stocks,and learning from the aftermath.
As I begin the stockmarket game, I wasn’t sure on what stocks to pick. But after watching the stock market
move through Yahoo! Finance, I decided on three strategies.My first one was to not hold stocks any longer than 2
days,somewhat of a day trader. The reason was simple, as a novice, I was eager to obtain experience and gain
capital, so that I can learn from my mistakes now and become a better trader in the future. I decided on day trading
would be efficient to learn, be involved in trading frequently, and make more money. Second strategy was to buy
company shares that would have the stock price of $45 or less.That was because I had a limited amount of money
and I can be more profitable by buying lower valued stockat a higher quantity.For example, the stockArch Coal
(ACI), on 08/27/15 I purchased 3000 shares at 5.55(total of $16,650), which were then sold at 6.41 (total of
$19,230) on the same day, I was able to make a profit of $2,580. When compared to MSFT on the same day, I
brought fewer shares at a higher cost; I obtained 500 shares at 43.32 (total of $21,660) and sold them at 43.81 (total
of $21,905) leading to a profit of $245. I saw potential in making more fake money in lower valued stocks.
My third strategy was to follow my gut; I would only invest in stocks that felt right and I was confident in. If I felt
that the company wasn’t great or I wasn’t confident in it, then I would not pursue it. This strategy worked when I
actually researched into the company using charts and the news. For example Ferrari, when it finally became a
public company, I was not confident in the company; yes it has created stunning sport cars, but something inside me
said, this company is not up to par when it comes to value, based on a comparison to other car companies, I decided
to not invest in it and I was correct. On its first day, it began at $55 per share, made a quick jump to $60, then started
to decline, and now it is at $46 per share.
As a technical analysis, I begin selecting my choice of stocks based on charts. I begin selecting stocks
based on the “most active” that Yahoo listed. I used the Yahoo! Finance charts to examine the stocks,which I would
look at them by the day, week, month, and year. By doing so,I would attempt to see if I can find a trend and then
decide whether to invest, continue watching it, or not invest in it. Looking at charts by themselves was not efficient,
which I then started reading the news articles relative to the company on Yahoo, this helped give me insight on the
company performance and previous events.When I finally received my Wall Street Journal subscription,I decided
to read the articles and see if I can get a company from it. One company that I came across from reading was Sprint
(S). Late October, there was a news article on the new Sprint CEO, Marcelo Claure, and how he managed to turn
around a previous company called Brightstar from turmoil to a huge company that has become successful.I read the
article on the 10/27/15 before the market opened.I did wait a bit to examine the chart, and then brought it at 9:47am.
On that trade, I didn’t make a profit (loss of $8) due to holding the stockto long, but I did learn that Sprint had
08/27/2015 09:33 AM Market - Buy 3000 ACI 5.55 -16,650.00 Profit
08/27/2015 10:30 AM Limit - Sell 3000 ACI 6.41 19,230.00 $2,580
08/27/2015 09:39 AM Market - Buy 500 MSFT 43.32 -21,660.00 Profit
08/27/2015 11:55 AM Limit - Sell 500 MSFT 43.81 21,905.00 $245
3. Stock Market Game Report 3
potential to be a better company based on the news that I read. Along with that, I learned the value of reading the
news, especially the Wall Street Journal, in relations to the stock market. I do plan to continue watching Sprint’s
performance. Later on, I realized that some of the news that I would read was actually not useful, because some
stocks would have their hype from the news announcement before the market opening and when it came to 9:30am,
the hype would be over and there wouldn’t be an opportunity to invest since it would be stabilizing from the news. I
then came across a financial website that provided news that was relative to the stockmarket, known as
MarketWatch.com. They had a section where you can see the most recent news. At this point, I began ignoring my
strategies such as investing in companies with stock price less than $45. With the recent news section of Market
Watch,I read about how Oscar Munoz, CEO of United Continental Holdings (UAL), had a heart day on the 15 of
October. The stockdid drop from $60 to $52 based on the news. I decided to further watch it out of curiosity. I
ended up investing in it on the next day, on the belief that a strong company like UAL couldn’t possibly continue
going a negative direction. It worked, I was able to make a profit of $352, I still continue watching this company,
because the company is being run by a temporary leader, the current CEO will return to work during the beginning
of 2016, which could lead to more good news.
10/16/2015 02:51 PM Market - Buy 600 UAL 55.92 -33,552.00 Profit
10/19/2015 10:11 AM Limit - Sell 600 UAL 56.51 33,906.00 $352
It was difficult for me to buy stocks,not being able to know when was the best time to buy,for example
UAL, I could have invested when it was around 52, 53, or 54 dollars, but I was late to react and invested at 55.92; I
missed out on profit. Form this situation I learned that even if a company may have bad news, I would need to figure
out, if it is a major or minor event.As an investor, the heart attack news is minor, because the company will
continue running without a CEO. The board of directors will also have to step in and find a solution to help the
company move on. Major news would be like of Volkswagen’s dishonesty; in this scenario, I would not consider
buying stocks in Volkswagen any time soon.Volkswagen will be scarred for a while, I would not feel confident to
invest in it, until the emission problem is solved. I learned that I did not follow my original strategies,I failed in
buying stocks only $45 dollars and below. I did not always follow my gut and the reason was that I became
desperate to make huge profits in order to recover from my losses.From this, I learned that, I should write down my
strategies or game plan and stick to them, so that I don’t lose my direction on obtaining knowledge. Anotherstrategy
that I learned is called, “no double dipping” (I personally named it); I will not buy the same stocktwice on the same
day. My example is Marriot International Inc. (MAR), on the first buy-sell trade, I made a profit of $287. This gave
me the false confidence that I was doing well, even though I had recently suffered some minor losses.An hourlater,
I decided to buy into the same stock and ever since the stockdid not recovered for me. I ended up with a loss of
$1,221
11/17/2015 10:24 AM Limit - Buy 700 MAR 73.26 -51,282.00 Profit
11/17/2015 12:10 PM Market - Sell 700 MAR 73.67 51,569.00 $287
11/17/2015 01:16 PM Limit - Buy 700 MAR 73.57 -51,499.00 Profit
11/25/2015 08:00 AM Market - Sell 700 MAR 71.84 50,278.00 $(1,221)
4. Stock Market Game Report 4
Stock Market Data (277 trades)
Date/Time Buy/Sell Quantity Symbol Price Total Cost
11/25/2015 08:00AM Market - Sell 700 MAR 71.84 50,278.00
11/24/2015 02:36 PM Market - Sell 1000 S 3.81 3,810.00
11/24/2015 02:31 PM Market - Sell 1000 F 14.55 14,550.00
11/17/2015 01:16 PM Limit - Buy 700 MAR 73.57 -51,499.00
11/17/2015 12:10 PM Market - Sell 700 MAR 73.67 51,569.00
11/17/2015 10:54 AM Market - Sell 2000 LEI 2.45 4,900.00
11/17/2015 10:24 AM Limit - Buy 700 MAR 73.26 -51,282.00
11/11/2015 01:58 PM Stop - Sell 400 V 79.9 31,960.00
11/10/2015 12:15 PM Limit - Sell 500 SNE 28 14,000.00
11/06/2015 09:55 AM Market - Buy 500 SNE 27.97 -13,985.00
11/06/2015 09:36 AM Market - Buy 400 V 79.45 -31,780.00
11/03/2015 11:48 AM Market - Sell 700 V 78.05 54,635.00
11/03/2015 11:16 AM Market - Buy 1000 S 4.57 -4,570.00
11/03/2015 11:13 AM Stop - Sell 1000 S 4.56 4,560.00
11/03/2015 09:37 AM Market - Buy 1000 S 4.41 -4,410.00
11/02/2015 03:30 PM Market - Sell 200 S 4.87 974.00
11/02/2015 10:33 AM Stop - Sell 200 CTCT 31.91 6,382.00
11/02/2015 09:52 AM Market - Buy 200 CTCT 31.77 -6,354.00
11/02/2015 09:46 AM Market - Buy 200 S 4.81 -962.00
10/30/2015 03:11 PM Market - Buy 200 V 77.79 -15,558.00
10/30/2015 02:14 PM Market - Sell 300 SNE 28.54 8,562.00
10/30/2015 01:33 PM Market - Sell 500 NNI 35.94 17,970.00
10/29/2015 10:50 AM Stop - Sell 502 LOCK 14.22 7,138.44
10/29/2015 09:52 AM Market - Buy 502 LOCK 13.46 -6,756.92
10/29/2015 09:36 AM Market - Buy 300 SNE 28.24 -8,472.00
10/27/2015 11:51 AM Market - Sell 2000 S 4.84 9,680.00
10/27/2015 11:00 AM Market - Buy 2000 S 4.77 -9,540.00
10/27/2015 10:40 AM Market - Sell 1500 S 4.82 7,230.00
10/27/2015 09:48 AM Market - Buy 500 V 78.04 -39,020.00
10/27/2015 09:47 AM Market - Buy 1000 F 15.03 -15,030.00
10/27/2015 09:47 AM Market - Buy 1500 S 4.73 -7,095.00
10/27/2015 09:41 AM Market - Buy 500 NNI 35.94 -17,970.00
10/23/2015 03:33 PM Market - Sell 516 V 77.07 39,768.12
10/23/2015 11:06 AM Market - Sell 1180 FITB 19.05 22,479.00
10/22/2015 01:23 PM Market - Buy 1000 FITB 18.84 -18,840.00
10/22/2015 11:10 AM Market - Sell 1500 CHLN 5.05 7,575.00
10/22/2015 11:07 AM Market - Sell 301 SNE 28.71 8,641.71
10/22/2015 10:36 AM Market - Buy 1500 CHLN 5.6 -8,400.00
10/22/2015 10:29 AM Market - Sell 2000 WWE 19.18 38,360.00
5. Stock Market Game Report 5
10/22/2015 10:25 AM Market - Buy 301 SNE 28.69 -8,635.69
10/22/2015 10:21 AM Market - Buy 516 V 76.52 -39,484.32
10/22/2015 10:19 AM Stop - Sell 3000 JAGX 2.03 6,090.00
10/22/2015 09:58 AM Market - Sell 599 UAL 54.96 32,921.04
10/22/2015 09:53 AM Market - Sell 708 RMBS 10.46 7,405.68
10/20/2015 11:29 AM Market - Buy 708 RMBS 10.34 -7,320.72
10/20/2015 11:22 AM Market - Sell 501 WTW 18.09 9,063.09
10/20/2015 10:33 AM Market - Buy 501 WTW 17.8 -8,917.80
10/20/2015 09:50 AM Market - Sell 5000 ARCW 1.91 9,550.00
10/20/2015 09:44 AM Market - Buy 180 FITB 18.97 -3,414.60
10/19/2015 11:41 AM Limit - Sell 160 ANF 21.35 3,416.00
10/19/2015 11:25 AM Market - Buy 599 UAL 56.76 -33,999.24
10/19/2015 11:00 AM Market - Sell 599 UAL 56.71 33,969.29
10/19/2015 10:25 AM Limit - Buy 599 UAL 56.49 -33,837.51
10/19/2015 10:11 AM Limit - Sell 600 UAL 56.51 33,906.00
10/19/2015 09:54 AM Market - Buy 160 ANF 21.33 -3,412.80
10/16/2015 02:51 PM Market - Buy 600 UAL 55.92 -33,552.00
10/15/2015 11:18 AM Market - Sell 2000 KEY 13.3 26,600.00
10/15/2015 10:52 AM Market - Sell 358 SCHW 28.36 10,152.88
10/15/2015 09:47 AM Market - Buy 2000 KEY 12.97 -25,940.00
10/15/2015 09:34 AM Market - Buy 358 SCHW 28.06 -10,045.48
10/13/2015 12:44 PM Market - Buy 2000 WWE 20.51 -41,020.00
10/13/2015 10:14 AM Limit - Sell 2500 TWTR 30.19 75,475.00
10/13/2015 09:54 AM Market - Buy 2500 TWTR 29.28 -73,200.00
10/12/2015 11:47 AM Limit - Sell 2000 MAT 22.87 45,740.00
10/12/2015 10:39 AM Market - Buy 2000 MAT 22.72 -45,440.00
10/12/2015 09:50 AM Market - Sell 466 EROS 30.86 14,380.76
10/08/2015 01:10 PM Market - Sell 3760 USO 15.92 59,859.20
10/08/2015 12:01 PM Market - Sell 20 EMC 27.23 544.6
10/08/2015 09:53 AM Market - Buy 20 EMC 26.57 -531.4
10/06/2015 09:40 AM Market - Buy 466 EROS 29.93 -13,947.38
10/05/2015 03:02 PM Limit - Sell 754 WWE 18.01 13,579.54
10/05/2015 12:19 PM Market - Buy 754 WWE 17.67 -13,323.18
10/05/2015 10:42 AM Market - Sell 449 PLUG 2.17 974.33
10/05/2015 09:42 AM Market - Sell 1218 JCP 10.02 12,204.36
09/28/2015 10:37 AM Market - Buy 1218 JCP 9.56 -11,644.08
09/28/2015 10:32 AM Limit - Sell 482 VXX 26.51 12,777.82
09/22/2015 09:44 AM Market - Buy 449 PLUG 2.16 -969.84
09/17/2015 11:24 AM Market - Buy 5000 ARCW 2.74 -13,700.00
09/15/2015 09:47 AM Market - Buy 482 VXX 25.65 -12,363.30
09/15/2015 09:46 AM Market - Sell 2116 AST 5.49 11,616.84
