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, May 24, 2011
Blog problems
Hi all, they are working on the blog problems. I can post here but not in the comment section. Hope to be fixed soon.
I was having the same problem leaving comments, I cleared cache and cookies, that seemed to work, so far the FAS puts are looking good sold for .52 ask is now .32, long way to go though.
Take-Two Interactive's (TTWO) quarterly loss widened and its revenue dropped more than 20 percent as the video game publisher sold fewer games than a year earlier.
For its fiscal fourth quarter ended March, the company widened its loss to $22 million, or 27 cents per share, compared to a loss of $9.8 million, or 13 cents per share a year earlier.
Revenue in the quarter was $182.3 million, down 22 percent from $233.2 million a year earlier. ------------------------------------------------ I have June $16s and $14s open, I'll probably get put on for $16 but I can't see it happening at $14.
Sold a couple of NFLX 225/230 put spreads. I got .10 out of them. For a 1.2% weekly return. I was going to go a strike higher but with this one I'll have no problem sleeping. I'm starting to like the Tues. selling....
Nice rebound today, TTWO up 4%, even after bad earnings and low guidance??? I might have to just write more puts, there is no bringing this stock down.
ok ok so i loaded google chrome to get the blog to work. So it looks like you might have to use a different browser or do a cache / cookie / temp file delete.
right now my SPX spread is looking really good with 75 pts of cush till Friday.
now with SPX you can sell off on Friday for the weekly's before close and be ok. Remember that.
Fulgore--For those of us new at this, would you explain further....now with SPX you can sell off on Friday for the weekly's before close and be ok. Remember that. Thanks
Hey all, ok so I tried to delete all the temp files and cookies off of my work computer in IE and it still didn't work. I loaded chrome on my laptop and it works no prob, so i have no clue what the issue is. Maybe it is just IE?
@safensimple, there are much wiser people that post on this blog (they answered my question when i asked the same thing) but I will try and explain it.
With the index's before if you were doing a monthly, quaterly, weekly, you could not trade after thursday BUT your option did not expire until Friday in the AM (before noon sometime) so in essence your option could be exercised on Friday and you had to no control. BUT now with weekly's and quaterly's with index's (SPX for sure but im not sure about all of them) you can trade on Friday, meaning if the market is going bad for you, you can get out before you get into real trouble. So your options expire Friday after the market closes. This means that you have control back instead of no control like before. Sorry if i explained it bad lol im still learning.
Hopefully all that want to post can now get on line. I had to jump through several hoops, but working now. I have a lot of spx spreads, all puts. Glad the mkt up today.. Some aapl puts and PCLN calls. These are all weekly’s. I received around 1% and close Friday. I will try to open more tomorrow as I really like the small amount of time and also if the stock is up and you sell a put tomorrow, it is like having only one day left in the period. Glad to be back.. Jerry
@Jerry, so you sell puts when stock is up? I think I do the other way to catch more premium. For example, I opened SPX put spreads this Monday when the market tanked. Your method is more safe in terms of risk management?
Opened some 275/280 NFLX calls yesterday with 10% cushion during 3.5 days for less than 1% ROI...today it jumped 11 points! So much for stocks fall faster than they rise. Debating about closing out for a loss - have 15 points of cushion left for 2 days.
Hi Voskoboy. That is a pain. I saw that 275/280 is the last call option you could have sold and that is in jeopardy now. I hope NFLX falls tomorrow morning! Good luck.
What the price of NFLX is doing is really a testament to the power of facebook. It's CEO spoke out about a potential parnership with NFLX and this thing popped. To the point where the Williams %R is waaaay in overbought territory (less that 1!!!) and staying there!! I'm starting to believe this stock can hit 300+ if the next earnings are good.
I also have the smaller comment screen? regarding spx positions.. 25 spx 1250/55 puts 50 1270/65 p 150 1275/80 p ----- aapl 31 of the 310/305 p ---------- pcln 75 530/25 call 37 540/35 call ------ The odd number comes from not getting filled with the number I wanted to go through Jerry
@All - Wow I just loaded up ToS on my laptop (at work, get paid to get paid haha) and the 1290 / 1285 put spread is .25 right now. That is a 5% return in 2 days, with 26 points of cushion. The 1285 / 1280 is 4% return for 30 pts of cushion. Jerry this is almost like your weekly where you give 25 points of cushion for the week, but obviously since it is a index you have to open that up, but I still think it might be a good trade. Right now all my maint is tied up and so I won't make any moves. This is just something i wanted to share with everyone to show that you can make good returns in 1-2 days.
Ful, I did receive 2% for the 1280/75 but I certainly am not totally comfy.. I would prefer that the s&p was up a little. All my other trades were put in at .05 ea. So a 1% ROI Most were opened yesterday with some on Tuesday. In the chapter on spreads I say 5pt per day but with some stocks that move a lot you of course have to stretch that out. No rule is set in stone, adapt in each situation. Jerry
@Jerry, thanks for the ROI information. One thing I do look at is my return after commissions. With regards to the SPX I would need a premium of 0.10 per week on a $5 spread in order to meet my goal of 1.2% per week return. This is difficult to handle sometimes on my end because it is really a return of 8% per month (without commissions) so i have to be careful. So far all my strikes have been very far OTM. So far this has all WINS this year for me. Lets keep our fingers crossed.
Jerry, Your comment on the "rule of 5/day" is spot on. I'm a little close on a Google spread which looked good on Tues. 5 on a $500 stock is not the same as 5 on a $100 stock! Should have figured that out upfront. Still seems like I might sqweak out on Friday for my first foray into the crumbs.
Good luck Safe, you should be just fine. When picking a position I look for a chance of .04 or better. I get as far away from the stock as possible. Good going Ful, becareful of the strike creek once you become bullet proof. That trap creeps up on you. Glad to see SPX going a in the right direction. Jerry
I did a 1200/1215 spread on Tuesday and got 0.20. About 6 ct per 500. With extra 0.45 charge per contract for indexes - can't say I am too happy. I'm still reviewing my way of put/spread :)
@Hannah, Nice return for 4 days. With regards to the extra charge, I do not have that with Think Or Swim, BUT they are more expensive then others for normal options. Not many choices in Canada for brokers.
Jerry, you certainly have some money to play with by the looks of your trades. I know you like the put side and developed all this with naked puts, but explain to us why you don't have any call spreads on the SPX with the number of put spread you have?
GSsound, I do not limit myself to put spreads. I just found the most safety in these puts. I will take money form any direction I can..lol I did open some NFLX call spreads today the 280/85 calls. If I remember correctly I did put in some SPX call spread orders but not filled? Good luck tomorrow to all. Hopefully you left good cushion and sleep tight tonight. Jerry
@All, it looks like the market is up a bit today, but i think it will come back down to the open. I think today will be a basic flat line almost. If this is true it will be good for all of us. Lets make some money! I will be choosing next weeks options on Tuesday. You all have a holiday in the US on Monday so no markets. Also I have to wait for my maintainence to open up.
29 comments:
I was having the same problem leaving comments, I cleared cache and cookies, that seemed to work, so far the FAS puts are looking good sold for .52 ask is now .32, long way to go though.
Take-Two Interactive's (TTWO) quarterly loss widened and its revenue dropped more than 20 percent as the video game publisher sold fewer games than a year earlier.
For its fiscal fourth quarter ended March, the company widened its loss to $22 million, or 27 cents per share, compared to a loss of $9.8 million, or 13 cents per share a year earlier.
Revenue in the quarter was $182.3 million, down 22 percent from $233.2 million a year earlier.
------------------------------------------------
I have June $16s and $14s open, I'll probably get put on for $16 but I can't see it happening at $14.
Sold a couple of NFLX 225/230 put spreads. I got .10 out of them. For a 1.2% weekly return. I was going to go a strike higher but with this one I'll have no problem sleeping. I'm starting to like the Tues. selling....
Nice rebound today, TTWO up 4%, even after bad earnings and low guidance???
I might have to just write more puts, there is no bringing this stock down.
ok ok so i loaded google chrome to get the blog to work. So it looks like you might have to use a different browser or do a cache / cookie / temp file delete.
right now my SPX spread is looking really good with 75 pts of cush till Friday.
now with SPX you can sell off on Friday for the weekly's before close and be ok. Remember that.
Fulgore--For those of us new at this, would you explain further....now with SPX you can sell off on Friday for the weekly's before close and be ok. Remember that. Thanks
No problem posting, using Safari on my Macbook
Hey all, ok so I tried to delete all the temp files and cookies off of my work computer in IE and it still didn't work. I loaded chrome on my laptop and it works no prob, so i have no clue what the issue is. Maybe it is just IE?
@safensimple, there are much wiser people that post on this blog (they answered my question when i asked the same thing) but I will try and explain it.
With the index's before if you were doing a monthly, quaterly, weekly, you could not trade after thursday BUT your option did not expire until Friday in the AM (before noon sometime) so in essence your option could be exercised on Friday and you had to no control.
BUT now with weekly's and quaterly's with index's (SPX for sure but im not sure about all of them) you can trade on Friday, meaning if the market is going bad for you, you can get out before you get into real trouble. So your options expire Friday after the market closes.
This means that you have control back instead of no control like before. Sorry if i explained it bad lol im still learning.
Hopefully all that want to post can now get on line. I had to jump through several hoops, but working now. I have a lot of spx spreads, all puts. Glad the mkt up today..
Some aapl puts and PCLN calls. These are all weekly’s. I received around 1% and close Friday. I will try to open more tomorrow as I really like the small amount of time and also if the stock is up and you sell a put tomorrow, it is like having only one day left in the period.
Glad to be back..
Jerry
@Jerry, so you sell puts when stock is up? I think I do the other way to catch more premium.
For example, I opened SPX put spreads this Monday when the market tanked. Your method is more safe in terms of risk management?
Opened some 275/280 NFLX calls yesterday with 10% cushion during 3.5 days for less than 1% ROI...today it jumped 11 points! So much for stocks fall faster than they rise. Debating about closing out for a loss - have 15 points of cushion left for 2 days.
Hi Voskoboy. That is a pain. I saw that 275/280 is the last call option you could have sold and that is in jeopardy now. I hope NFLX falls tomorrow morning! Good luck.
@Jerry, how much SPX do you have and what strikes?
How do you like playing the SPX?
@All, it look like they fixed the blog. I have a small little text screen that opens up now.
What the price of NFLX is doing is really a testament to the power of facebook. It's CEO spoke out about a potential parnership with NFLX and this thing popped. To the point where the Williams %R is waaaay in overbought territory (less that 1!!!) and staying there!! I'm starting to believe this stock can hit 300+ if the next earnings are good.
I also have the smaller comment screen?
regarding spx positions..
25 spx 1250/55 puts
50 1270/65 p
150 1275/80 p
-----
aapl 31 of the 310/305 p
----------
pcln
75 530/25 call
37 540/35 call
------
The odd number comes from not getting filled with the number I wanted to go through
Jerry
@Jerry, thanks for your list. Currently my list consists of 12 SPX 1240/1245 put.
You must have recieved a good premium on the 1270 and 1280 ones. wow! what was your return for these?
Also it looks like all of yours will expire. WOW good week for you if so. Your return must be pretty good for this week if so?
@All - Wow I just loaded up ToS on my laptop (at work, get paid to get paid haha) and the 1290 / 1285 put spread is .25 right now. That is a 5% return in 2 days, with 26 points of cushion. The 1285 / 1280 is 4% return for 30 pts of cushion. Jerry this is almost like your weekly where you give 25 points of cushion for the week, but obviously since it is a index you have to open that up, but I still think it might be a good trade.
Right now all my maint is tied up and so I won't make any moves.
This is just something i wanted to share with everyone to show that you can make good returns in 1-2 days.
Good luck all
PS - Man i am loving the SPX right now haha.
Ful, I did receive 2% for the 1280/75 but I certainly am not totally comfy.. I would prefer that the s&p was up a little. All my other trades were put in at .05 ea. So a 1% ROI Most were opened yesterday with some on Tuesday. In the chapter on spreads I say 5pt per day but with some stocks that move a lot you of course have to stretch that out. No rule is set in stone, adapt in each situation.
Jerry
@Jerry, thanks for the ROI information. One thing I do look at is my return after commissions. With regards to the SPX I would need a premium of 0.10 per week on a $5 spread in order to meet my goal of 1.2% per week return.
This is difficult to handle sometimes on my end because it is really a return of 8% per month (without commissions) so i have to be careful. So far all my strikes have been very far OTM.
So far this has all WINS this year for me. Lets keep our fingers crossed.
Jerry, Your comment on the "rule of 5/day" is spot on. I'm a little close on a Google spread which looked good on Tues. 5 on a $500 stock is not the same as 5 on a $100 stock! Should have figured that out upfront. Still seems like I might sqweak out on Friday for my first foray into the crumbs.
Good luck Safe, you should be just fine. When picking a position I look for a chance of .04 or better. I get as far away from the stock as possible.
Good going Ful, becareful of the strike creek once you become bullet proof. That trap creeps up on you. Glad to see SPX going a in the right direction.
Jerry
I did a 1200/1215 spread on Tuesday and got 0.20. About 6 ct per 500.
With extra 0.45 charge per contract for indexes - can't say I am too happy. I'm still reviewing my way of put/spread :)
@Hannah, Nice return for 4 days. With regards to the extra charge, I do not have that with Think Or Swim, BUT they are more expensive then others for normal options.
Not many choices in Canada for brokers.
Jerry, you certainly have some money to play with by the looks of your trades. I know you like the put side and developed all this with naked puts, but explain to us why you don't have any call spreads on the SPX with the number of put spread you have?
Chris
@Fulgore,I like keeping up with your postings (and your trades too)...thanks.
GSsound, I do not limit myself to put spreads. I just found the most safety in these puts. I will take money form any direction I can..lol
I did open some NFLX call spreads today the 280/85 calls. If I remember correctly I did put in some SPX call spread orders but not filled? Good luck tomorrow to all. Hopefully you left good cushion and sleep tight tonight.
Jerry
@All, it looks like the market is up a bit today, but i think it will come back down to the open. I think today will be a basic flat line almost. If this is true it will be good for all of us. Lets make some money!
I will be choosing next weeks options on Tuesday. You all have a holiday in the US on Monday so no markets. Also I have to wait for my maintainence to open up.
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