At this time I have puts with AMZN that expire on Friday. I have some 165 and 170's. Both look pretty good at this time with AMZN trading around 174 this morning.
But that NFLX stock has been pretty erratic. Maybe the profit taking is over and it can settle down some. I have some of the Jan monthly puts at the 135 strike.
All traders should be aware that in Jan we have a pretty full month of earnings reports. so use caution and make sure you are aware when your stock reports.
Weeklies come on line tomorrow so there might be some good plays coming up.
Jerry
10 comments:
OMG!!! NFLX is up today??
Jerry on your AMZN trade this is not your thing but what I did with it Friday at the close the stock was pinned at 175.00 I did a put credit selling the Dec.175 and Buying the 165 2.15 credit.
Could have closed it Monday for a nice profit but of course held on till it turned into a loss.
Making a nice come back today with extrinsic falling off a cliff. :+)
good going Gary, I had a loss earlier this week with nflx but if I would have held on it looks to be a winner.. But you can't bet the farm on a hope and prayer. When doing this it requires discipline and rules. But the 'rear-view mirror sure can hurt your feelings.
Jerry, you have taken 2 positions with AMZN you said 165 & 170. AMZN is at about 175. Your 170 puts are really close to the underlying stock price. Any reason why? I know that these are weekly's (assuming) but it seems the 170's are close.
Hi Fulgore, yes they are close but several things went into the decision to have a close strike price.
1. AMZN is having a great Christmas season
2. 3 days left and I'm watching them close with stops in if I have to leave the computer. Today justified the position but still you are correct it is a close strike.
Fulgore, AMZN is also a stock that seems to pin to a strike a lot. So lets say you see AMZN on Friday 10 minutes before the close right on a strike sell it. Come Monday AM you have peeled off two days of extrinsic and if the underlining is up anything you have a nice profit. Works some times and other times you get lucky. I sold AMZN 170 / 165 put spread 11-12 about a hour after the open for 1.10 I think it closed that day at 168 something.
Had 500 shares put to me, still have them today have taken in 2.2* every week sense.
Short 175 at 2.35 this week.
I guess what I'm trying to add is if your going to play close to the PPS be ready to take shares.And do it on something that pins..
like BIDU thats back on the weekly list starting tomorrow!! Yahhhh Baby!!!
I should have also added, If Jerry's model of 35-40% APR is not good enough for ya weekly options are a great way to juice things up a bit. Or like Dan Sheridan says "Have little Louisiana hot sauce with your spread.."
Hi Jerry,
nice blog, I've come over from Tradeking forum "selling puts". I've read your book, and put on a few trades which all expired, so happy with those. I used Visa and VMware, and I also like Cree. Others in the $50 to $150 price range I am looking at are FCX, CRM, Akamai and Qualcomm. Cheers.
Welcome aboard Steven. Glad to hear you had good positions. Use caution and just keep making money. Sometimes new-bies get over excited and move a little to close with their strike. A little success can make it seem easier than it is.
Keep up the good results..
Jerry
Hi Steven, I just reread your post and it brought back a fond memory. This take place back in 1999 (i think) For what ever reason I owned 9000 shares of Qualcomm. I was writing for an outdoor magazine and they sent me into the backwoods of Colorado. I was out of touch for a week. When I came back to the town of Cortez, I was waiting for a plane and pulled out a paper from the trash. I looked up QUAL and WOW.. it was up 27 point since i left town. A quick calculation said i was up around 250,000. Boy those were the days.. LOL...
wow, those were crazy days, I wasn't trading then, but Greenspan pegged it exactly with his "irrational exuberance" comment (I think he was Fed chairman during that time, that comment definitely applies, even today). Now imagine if you had owned 9,000 QCOM in-the-money calls, that would have been something (especially if you sold them the next day, lol).
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