G'morning traders.
A quick update on the positions I now hold and my current thoughts.
1. 2 GOOG 520 strike for JAN 2011 GOOG trading around 614.50 now.
I will try to hold for a while as I have a lot of cushion and GOOG
has so much going for it. If held a while it gives an average of 3%
per month ( my goal)
2.AMZN trading around 168
I have 10 of the weeklies at the strike of 155 These are working out nice with 3.5 days to go
I Have 25 of the 150 strike for the weeklies also. These look good with
19 pt of cushion with 3.5 days to go.
NFLX today around 171 and headed up some
I have 30 of the Nov monthlies at the strike of 125. So around 46 pt of cushion and 3.5 weeks to go.
These positions are all making 3% or better per month and going as expected. Goog is down a little today, however, the premium is falling also. That is the beauty of lots of cushion. The time factor starts eating at the premium quickly if the stock doesn't start dropping rapidly.
So, if nothing drastic happens today I will hold these and watch. As you know if things go off track I have no hesitation to close or make a move even if it involves taking a loss.
Good trading all.
Jerry
6 comments:
Hi Lee,
I sold 15 MOS 57.50 Nov20 puts today for .23 and about 3.89%.
I tried to sell 20 MOS 55 yesterday but only 3 filled before the stock started moving. I used a limit to trade.
Thanks for the book and sharing your techniques.
Ed
HI Ed, the one thing to watch is POT reports Thur. If they came in bad, they could drag down MOS. Mos only met expectations and a down-grade of the fertilizers could hurt
OK thanks,
I may buy it back before POT reports. For now though I have a 22+ cushion on the 55 and 19+ on the 57.5.
Decisions, decisions.
Ed
I have been using both POT & MOS often over the years. Both have worked with my way of trading puts. Just leave as much cushion as you can with a decent return via your maintenance and those two stock are nearly always golden.
Hi,
By next Friday, we would have known the election result, could we treat it like a normal week ?
Have you ever look at FCX/BEN? Most stocks are not as volatile as NFLX/AMZN, or others don't have weeklies. BIDU is just too tiny a crumb for a small capital.
Good day
Hannah
I am going to be careful regarding next week. A sweep for the Repub's should be a positive for business but who knows?
I have used FCX but not BEN I will look again. thxs
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