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.











Monday, November 1, 2010

An opposite type trade

Ok, I hope I don't confuse you with this trade. I am doing a type of trade that I like in down-or flat markets. I am selling naked CALLS..
If you have read my book I have a chapter on this method. It is quite easy and similar but on the opposite side of naked puts.
I sold the naked calls for NFLX
with NFLX trading around 167.5 I sold the Nov 5 (weekly) 185 call.
I sold 10 of them for $737.
My plan is that NFLX will not go up to 185 during this week. And if that happens (stays below 185) then the naked calls just go away. If NFLX starts up i will have in place an order to buy the stock at 184. So the hoped for result is that nflx will then continue above 185 and I will have the stock and it will be called away. So i make another 1000 buy for 184. Called away for 185. This plus the 737. will make a nice profit any way it shakes out. The worst is the nflx goes to the 184 point and triggers my buy order and then drops down. But that is a lot of 'ifs' for only one week.
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