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.
Tuesday, December 14, 2010
Some AMZN puts
I opened some puts to catch the last of the Dec prem's.
I have a few 170 and 165's with AMZN, So if we can get AMZN to do a little better than nflx it will all work out.
Jerry, How many weeks/days prior to expiration do you typically write your puts? For example, have you started writing Jan puts, or do you like to wait until you are with a certain number of weeks or days? Thanks, John
Hi John. Usually I only trade in the 'front' month. Meaning of course the current month of trading. But sometimes as in this month I will open positions in the coming month during the last week of the month now trading. Very seldom will I go out past the coming month. In my book I give an example of trading a 'LEAP' and made great money but I always figure that the TIME factor is one of the few unknowns that I can somewhat control. I think of 'time' as my enemy. I want to have my money and give little time for the guy on the other side to reach his dream. This is one of the good things about trading weeklies. Of course the downside is you have to use a closer strike to get decent premiums. Two thoughts...More cushion, Less time... These will lead to success. Jerry
3 comments:
Jerry,
How many weeks/days prior to expiration do you typically write your puts? For example, have you started writing Jan puts, or do you like to wait until you are with a certain number of weeks or days?
Thanks,
John
Hi John. Usually I only trade in the 'front' month. Meaning of course the current month of trading. But sometimes as in this month I will open positions in the coming month during the last week of the month now trading. Very seldom will I go out past the coming month. In my book I give an example of trading a 'LEAP' and made great money but I always figure that the TIME factor is one of the few unknowns that I can somewhat control. I think of 'time' as my enemy. I want to have my money and give little time for the guy on the other side to reach his dream. This is one of the good things about trading weeklies. Of course the downside is you have to use a closer strike to get decent premiums.
Two thoughts...More cushion, Less time...
These will lead to success.
Jerry
what's your take on holding AMZN Feb 170 puts into earnings next week and especially after the down day today?
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