With two weeks left in the option month, this is where I usually review my positions and start looking for ways to upgrade my returns.
Positions I now have are---
FSLR 30 OF THE 95 STRIKE
LVS 40............39
NFLX 30...........165
RIMM 30............50
I have taken in $4,639. with these positions. All of the stocks are preforming as expected. None of the puts have fallen enough in value for me to start looking at rolling up. So I will sit on these and by Wednesday of next week maybe the time value will start eating at the premium.
I also have to keep in mind that RIMM reports earnings on the 16th of Dec. This will be about 3 days before the end of this option month. It is always something to be aware of. An earnings report is probably the biggest factor in my option trading. It can never be underestimated. As all of you that have read my book know, Unless I have a very VERY big cushion I avoid holding over an earnings.
I received a note asking that I make sure that in the future I will make sure that I differentiate between when I have a weekly vs monthly position. I will certainly try to keep that in mind.
Also today in the news is the jobs report. Many PUT traders try to out-guess these reports. For me, I just go through my list of stocks and filters and pick as well as possible and 'sell the put'. I don't want to have paralysis by analysis, by worrying about every report coming down the pike. Everyday there is another 'report' of some kind coming. Always a future possible market turner. So keep your eyes and ears open, but don't over worry about each report coming.
In my 13 years of trading I have seen these reports come and go ( how about Y2K) I have learned to relax and go with the flow.
good trading all.
Jerry
5 comments:
Good morning Jer.
What is this EUNN?
Market report - one day is hellish, the next day is heavenly. Just a tool to make small traders lost the shirts. Since RIMM is reporting on DEC 16. I went for it like fishchampion did :) Will get out just before the earnings.
Hey Hannah,
EUNN = RIMM I am assuming.
I have RIMM also and will let time decay eat away at it and get out before earnings.
Hi H. do be careful with Rimm. Even though I have positions with it I still treat it with kid gloves. There is always a reason when you see great looking premiums. When I go through the drill of finding new positions each month I always look at the best ones as suspects. Sometimes they are just to good! A stock like RIMM might be losing more and more of its market share to android-apple etc. I am not very versed on all the different smart phones etc but I think the blackberry might be struggling to maintain its mkt share. You must be aware that at any time RIMM could come out with a negative report downplaying their coming earnings report. Leave lots of cushion when approaching earnings. The potential bad news may not be the day of the report. It could be 4-5 days ahead of time etc. I am not expecting all that bad, but it MUST be figured in.
Jerry
I was in; the after thought was the put premium of RIMM may stay high till after the earnings. A lot of traders are betting on hugh drop.
Close my fingers, won't hesitate to close at any time.
i hope to be out of this trade by thursday of next week if everything goes that direction.. i dont want to be hanging out in the week of earnings at all.
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