Welcome to the page that discusses Put Options

I want to start this blog by telling you that I have no 1-800 number, I am not trying to sell you any newsletter with the next great stock idea. I am not inviting you to come to my house and view a cleaning agent. I will not try to sell you plastic bowls or any other ‘can’t miss’ ideas. I do not have any life changing secrets and I cannot promise you a flat stomach.



I am going to share with you my daily option moves and the reasons behind them. My way of trading options are of course not the only way to utilize Put Options. This is a way that I have found to be simple and easy and not as complicated as some make this business. My hope is that you can develop a steady stream of income and continue to enjoy your life.











Sunday, October 31, 2010

tough week coming

Hi traders, I have spent an hour or two looking for good positions for the coming week or month. So here goes with some thoughts.
Of course the wild card is the election. There Is talk that the (our) government is running a Ponzi scheme with our U.S. Bonds. If you read my book or some of my post you know that i try to somewhat ignore all the static and just go with good stocks that have decent premiums in the option market. But this coming week could be one of the bigger ones in recent history. I am certainly no 'chartists' but adding fuel to the fire is that a lot of informed people think the market is ready for a significant correction?
I don't run scared but i do try to keep my ear to the ground. So my advice is to be pretty cautious this week.
I now have positions with GOOG. I have over 90 points of cushion so i feel pretty safe there. I also have some NFLX monthly that also have a good cushion. But I will wait until after Thursday morning before I open new ones. That will give Tuesday election results time to be digested.
Protecting capital and not pushing the envelope is the plan this week. Lets see how it all shakes out before we leap in.
Positions that i like except for the week ahead are... In no special order.
MOS trading around 72.5 maybe the monthlies with the 57.5 strike it gives around 2.7% return for 3 weeks
POT trading near 145 selling the monthlies at the 120 strike it gives a good return of 3.6 plus 25pt of cushion and a recent good earnings report.
AMZN trading around 163 sell the monthlies at the strike of 135 for a return in three weeks of 2% and good cushion.
But again, I am going to be very careful this week..It is hard for me to sit and watch and not jump in and make a trade or two, but I will give it my best.
Good safe trading all

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