EZ Stock List (Nov 8, 2010)

After looking at JKSE strengh, we can now see some stocks, after doing some exits last time. Some are blue chips & some are second liners.

1. PT Timah (TINS.JK)
Being the largest tins producer in Indonesia & near to its all time high is the plus point of the stock, yet since the beginning of this year, the price has surge up to 50% or more. Yet, inventory of tins all over the world is decreasing, this is the main problem that cause the price to be increasing as people still needs tins, the other industry that will be affected is the electricity industry.

Rating: Buy, Entry: 2975-3025, S/L: 2775-2750, TP: 3725-3900

2. Japfa Comfeed (JPFA.JK)
After consolidated for a moment, this stock is seemed to be in a great momentum of accumulating the power to go to the nearest high & in a very high possibility of achieving 5000 in near time. Yet, it is still accumulated & indicators are showing its good position now.

Rating: Buy on Weakness, Entry: 3550-3600, S/L: 3100-3075

3. Indofood Sukses Makmur (INDF.JK)
Look like accumulation is taking place, yet the risk is low enough. Not affected by the issues in Taiwan, INDF still has other products that can hold and keep it running in profit.

Rating: Buy, Entry: 5300-5350, S/L: 4975-4950, TP: 6000-6150

Happy Investing^^
Disclaimer ON!!!

JKSE in simple analysis

I see that JKSE is now having a chance of breaking another new high record, as the regional are so supporting the Asian markets to rally, yet the indicator of ADX seems to have another crossing from DI+ to the ADX which is the indication of another rally.

We see that at the past time when the DI+ crossing the ADX, then the IHSG will rally, while the current position is, DI+ is almost crossing the ADX, and yet we're almost having our index at new high which was at 3667.01, which means only about 12 pts to go. All indicators are pointing up & yet the time to take some position which is still low & hasn't broken another new high, so we can have this chance to win the market.

I see that the support level at 3531-3540 is quite strong as it has been a bouncing point for two times, and we can see that the index is almost broken its new high again, and I'm really optimistic that it will go further to 3750-3800.

Rating: Buy; Target: 3750-3800, S/L: 3530-3500

We can watch some stocks later...
Have a nice weekend^^


Happy Investing^^
Disclaimer ON!!!

Time for additional things... (Options)

What is Options??? A lot of people keep asking what options is actually, let me give you brief explanation of options.

Options is a right to exercise an underlying at a certain price at a certain time. Then, one question arise again, what is exercise actually? Exercise means to buy or sell or in short we can say that it is the action we favor to do with the underlying. Underlying itself is the stuff that we want to exercise, can be forex, stocks, futures, indexes, etc. So, if a Stock Options is bought, then it means we have a right to buy or sell a certain stock at a certain strike price at the date we favor.

There are two types of options which I know based on the right:

1. Call Options

Call Options is a right to buy a certain underlying at a certain strike price at a certain price. For Example, Microsoft (MSFT) is now at $25, and it is expected to go up, then we buy call options in order to have the options increase in value. If we buy MSFT Dec10 25 Call, then when the options expired at Dec10 and  if MSFT is closing at $27, it means that our options is now having a value of $2. Why? Because we bought the MSFT with a strike price of 25 (the Bold underlined blue color 25), which means we have a right to buy MSFT at $25 and sell it directly at the current trading price. So, we read  the transaction as Buy To Open MSFT Dec10 at strike price $25 Call Options, which means we can buy MSFT at $25 from the date we buy up to the expiration.

2. Put Options

In the other hand, we have a Put Options which is a right to sell a certain underlying at a certain strike price at a certain price. Example, Microsoft (MSFT) is now at $25, and it is expected to go down, then we buy put options in order to have the options increase in value. If we buy MSFT Dec10 25 Put, then when the options expired at Dec10 and if MSFT is closing at $21, it means that our options is now having a value of $4. Why? Because we bought the MSFT with a strike price of 25 (the Bold underlined blue color 25), which means we have a right to sell MSFT at $25 and sell it directly at the current trading price. So, we read  the transaction as Buy To Open MSFT Dec10 at strike price $25 Put Options, which means we can sell (short) MSFT at $25 from the date we buy up to the expiration date.

In options, we have two types of value which are the Extrinsic Value & Intrinsic Value. Extrinsic Value is the premium of the options, which slope is negative, which means the value will decrease as the time goes by, in short we can say that the value will be 0 (nil) at the expiration date. In the other hand, the intrinsic value is the value that will increase or decrease based on the underlying price, as what I said at the example above on Call & Put Options. So, in options trading, never bet on the extrinsic value increment, which will never happen, just hope that the underlying will go as what you wish in the position.

Well, in options we know that there are a lot of analysis, one of them is the Black Scholes Model, also known as the Greek. He invented this analysis and give four symbols Delta, Gamma, Vega, Theta. We'll discuss about them next week.

Happy Weekend^^

Happy Investing^^

Disclaimer ON!!!