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, September 26, 2011

I'm Home

Hi all, I have been in California for several reason. One was a high school reunion and the other was some business deals. No big story or other results at this time.
Sorry that I was unable to contribute to the blog for a while. I see many were worried that NFLX had hurt me etc.. Believe me I have not had NFLX for several months. I haven’t even looked at them for ?? No idea where anything but AAPL is trading. I know that I, and many preach diversification but I have only AAPL positions. I am spread over many different strikes and have some 2012 & 2013 calls. I’ve also sold both monthly and weekly calls on these. I am of the opinion that AAPL is probably the best stock in America at this time. So I am riding the coattails of this powerhouse.
I have received many questions as to my where-bouts.. So sorry for not being able to respond. It has been a hectic week or two. I will be back on line and looking forward to adding to the blog. You guys have seemed to progress so far that I am amazed at the interesting positions you have opened and the insight used to figure the returns and the up an downside possibilities.
Tonight I will review the complete blog and tomorrow I can answer any questions or help with ideas.
Good to be home. Thanks for all the best wishes etc.
Jerry

19 comments:

doctorali said...

hi jerry welcome back.i complelty agree with you about nflx.This is a highly beta stock which swings wildly to minor or major news plus its PE was way too high which is a big no for your method of selling put.Also nflx and pcln stocks are not good for calendar spread as they are very volatile.However,i feel that PCLN is a safe bet for selling puts and also looks like market has put out the bottom for now,unless ECB comes with some disappointing decision next week which appears highly unlikely.

Charlie said...

Hey Jerry, glad youre back and ok

fishchampion said...

hey jerry i am looking at buying some calls for aapl. im thinking deep in the money 290 strike price for aug 13 exp. i dont buy options very often. i am usually selling so what is your suggestion for starting out wanting to buy an aapl calls for next year

Selling Put Options said...

Hi all, Fish, I don't see a Aug 2013 call offered?
But if available a tough question as I have two different opinions on that. For me, I never buy plain old call options. It is such a guessing game and most lose on those. Buttt with AAPL coming on line with I-ph5 and a new I-pad, who knows.
Do you plan on selling calls against them? What I like better is buying the Jan 2013 390 for around 75 and sell the Oct this years for around 16. That lowers your cost to around 57 and you can do that same trade for the next 15 months. That is a trade i am doing at various strikes. Let me know what your final plans are.
I do have some MSFT Jan 2013 calls bought at the 25 strike and I'm selling the Oct 26 strike. At the premiums now offered I will recoup the bought price in no time and have the Jan calls for free. These are not expensive so it might fit many of you looking to get into Calendar spreads.
I also have some AAPL plain old puts at the 350 strike for this Oct.
Good to be home and back on line
Jerry

Anonymous said...

@Jerry What makes me nervous about the AAPL calendar spread described above is: ok you sell the Oct 22/11 for about 16. Is there usually (always) a place to roll into for the next expiration, even if AAPL shares are trading above your short strike? Does the premium diminish each time you roll? We chatted previously about using the next monthly rather than successive weeklys and my research confirms that the premium is probably larger using the monthly and certainly the commishes, and effort are less.

The price of being such a good and diligent blogger such as yourself is that everybody misses you when you go away. Welcome home!

Ying said...

@Jerry Welcome back!! I wish I could go on for vacation w/o looking at the market everyday too..
The market is very volatile now in the short term. AAPL could go up/down $10 in a day. I think it would be better to sell monthly put to stay far more OTM than weekly. I would be very happy making 4% a month w/ less worry.

Selling Put Options said...

Good point Ying, but another way to look at making money is using AAPL... Now trading around 400.
You can buy the Sept 30 370 call and sell the sept 30 375 call.
You will net around .07 and the maint required is 5 per option. so when the dust settles you make approx 1.4% in two days + 2.5 hours.
The risk is that AAPL falls more than 25 point by Friday? I don't think so.
Also an advantage of this trade is that of course the ROI is great for a two day trade but for traders that do not have full trading privilege for naked puts, might still be able to do this trade.
Many ways to skin an option. No one way is perfect and it is best to have all the tools to use in any situation.

Phil said...

Do you still sell naked Jerry? It seems like you are mostly a spread trader these days.

Ian said...

Good to have you back Jerry.

Selling Put Options said...

Thanks guys. Phil; I do trade mostly spreads as in the above example I find I can get better than 1% in three days trades. Weekly’s have made this possible. there are times that naked puts work but spreads generally do offer nice returns for short period trades with little risk.
Regarding those of you that trade the index's, I just don't use them much anymore. With a particular stock i can decide on the filters and vote yes or no. With an index, most will follow the market regardless of the individual stocks. But many like 'em and as I have said, many ways to skin an option...!
Good trading all, and good to be back..
Jerry

Fulgore said...

@ALL & RHM OPTIONS.
After last weeks hit I waited this week.

Got the SPX put spread - 1060/1055 Weekly Today To Expire Tomorrow. Prem = .10

SPX at 1163. 100 points of cushion for 1.5 days. This should be safe.

Patrick said...

@ Fulgore

That's what you said last week...

Just kidding, I had the same sold strike and bought back probably at the same time you did, so lost roughly 1.5 months worth of crumbs profits.

My 1030/1005 should also be safe

rhmoptions said...

@fulgore. You should be OK. My 990/970 are going to expire worthless as well.

Will be ready Monday to do it again.

Rhm

voskoboy said...
This comment has been removed by the author.
Anonymous said...

I opened AAPL 370/360 yesterday for 0.10 premium. Based on previous tactics, I placed a stop limit buy for the 370 at 0.40. It was executed! I am so pissed. AAPL is still at 390...I can't believe it spiked. I figured this would be a good way but Lesson learned is to watch the spreads as Jerry does

jamesaliano said...

I sto AAPL 370/360 put spread today for .20 credit 1.6% roi
would have got .30 but TK screwed up my modify order. Still not bad for day and a half.

Selling Put Options said...

Dukes, that is one reason that I am very careful of stops. If I am away especially near the end of the current period, I put them in, but otherwise i play it day by day. If you are able to watch/check the positions during the day there generally is no reason for stops. Remember that positions can't be exercised until the close of that day. That's important! Also as there is always 'TIME' left until Friday, usually no reason to jump into closing. I will usually wait until Friday to roll into another week's position. I have an advantage over many as i watch the positions until when i have to leave for ?? It is certainly irritating to be closed out with a ton of cushion.
Tomorrow should be interesting…
Jerry

Fulgore said...

@ Patrick

That's what you said last week...

ha yes .. shot myself last week. Thats ok .. this one is for sure now :)

I wish i had all the answers :)

ihaveoptions said...

Good week for call spreads....no?