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.
Saturday, December 24, 2011
Merry Christmas to all ...
A very Merry Christmas and a Happy and prosperous New Years to all the Bloggers and option traders out there..
Nicky, I had 250 and 201 were assigned..lol Getting assigned isn't always a bad thing. EX; if the stock drops down to 25.95 in the morning, I can buy it for that amount to replace the shares I owe and i had sold them for the 26 strike? One down side is that there are commishions coming and going so ??
I know this has been discussed before and I know it's your blog Jerry and I much appreciate your efforts, but it would be very helpful if you would post at the end of the previous thread that you are opening a new one. If I don't refresh my browser, I don't see the new thread til I do and miss some of the 'action'. Thanks for your continued help into the new year. I'm up for the year quite a bit, a refreshing change from my previous trading experience and I can attribute it directly to this blog!
Hi all. I often get questions regarding assignment. The question is often associated with a negative thought. This past week I started with 250 of the MSFT weekly 26 strike. As MSFT was bouncing around 25.98 during the last few minutes and right at the close it jumped to 26.03. I did not get a trade in on time so I let them ride. Of the 250 options 201 were assigned. So this morning I went on line and ‘bought to cover’ the shares. The situation turned in my favor as MSFT opened down some and I bought the 20100 shares for around 25.945 The good part is I had sold the shares at the strike of 26 and bought to cover them for 25.95. So in this case I made nearly a $1000 by being assigned. Now if MSFT had risen at the opening I would have lost money but this time it worked in my favor. The end result was positive as I of course keep the amount I made when I had sold the 26 strike in the beginning. I made money on the assignment and then I sold the 26 strike again this morning. The point is that there is no reason to panic if assignment is near. Many wonder what will happen if I need to come up with a 100k or whatever amount immediately. Your brokerage will let you ‘buy to cover’ the shares. The outcome can turn into a loss if the stock jumps up on the next trading day but it also might drop some as MSFT did today.
Jerry, I assume you could also put in a good until cancelled bid after hours and/or before trading the next day that would have bought in your favor to see if you can be out of the trade for a profit, and then if it doesn't close you can take what the market offers, in your case a profit? Does anyone know how long that you will be allowed to trade yourself before your broker will sell you out at whatever price then exists? Having never been assigned, I'm still learning. Thanks.. Jim
Jim, As i undestand it you have to square it away before the end of the next trading day. That would be today. so i assume you could watch it if it was falling and close even more to your advantage? For me I like to get it taken care of. Of course a stock like AAPL or GOOG etc could open up many dollars and ouch, of course it could be down and then it is yea! Those kind of stocks I would advise to take care of business before the close on the last day of trading. Remember that even if you have to close it at a somewhat higher price, the new one you are going to sell hopefully will also be at a higher price..
Took a risk today, sold TTWO $14 Jan puts for .75, TTWO is trading @ $13.41, I like this stock, 16 trading days for it to reach $14, worse comes to worse I can just roll.
Nicky, you are certainly playing with fire. I have watched TTWO for awhile but still no earnings and will they ever? From a trader that used to sell puts over the current price and often watched the stock slowly drop away and to close them gets more and more expensive.. Pretty soon you either bite the bullet or end up rolling out to July etc just to try and get even. It is like using a hoola hoop for T-paper... There is no end to it. So be cautions.
So the last 2 weeks I've seen MSFT close @ $26 and $26.03, my order to sell this weeks MSFT $26 call is just not getting filled, but what did get filled is STO MSFT $26 weekly put for .28, hopefully MSFT goes up a bit in the next 2 days.
To ALL. Anyone have calendar spreads on AAPL like a lot of us have on MSFT? If so, what strikes are your LEAPS and what strikes are you using for your weekly short puts.
If I don't post in the next few days, everyone have a Happy New Year celebration and hopes of making more money in 2012. Thanks to Jerry and everyone who posts to this blog.
Sold to open MSFT $26 weekly call, only got .10, but what can one expect 2 minutes before market close, one day till expiration? So I sold the $26 call and put, tomorrow should be very interesting, MSFT closed @ 26.02 today, if it remains unchanged tomorrow I will be happy.
Nicky-Pretty good for two days. I'm trying to get .20 for next week but so far no luck. Maybe just will go out to Jan 21 at .60 + and let it rest for awhile. Looks like it might settle a bit over 26 again this week.
You might think about selling the weekly put as well, I have both open now, it looks like the put will expire, and I will have to roll the call, I think there is a greater chance of the call running away, rather than the put, and in either case you can always roll.
@Nicky So what you are doing with MSFT is that you own the 26 LEAP and are selling short the weekly 26 CALLS & PUTS?? A sort of straddle position. By the way where do you get your pictures.
You got everything right except the LEAP part, I own the 25 LEAP, some pictures are of girls I am "familar" with, others are just random girls from the net.
@Nicky I read that you must be a Giants fan. Being an Eagles fan and hating the Cowboys, I'm rooting for you guys this weekend. Just to bad it couldn't be the birds. Watch out next year though.
Giants fan?!!!Giants fan?!!! A fanatic!!! Waiting for this game is killing me, I don't want to look past the Cowboys, but they can beat Detroit too, after that, who knows anything can happen, they won 3 straight on the road in 2007, Your team is the best of the ones not to make it in, as far as next year, I trust our GM, I think the team will improve next year. The spread is -3 Giants, that's a sure thing, I'm going to use all my margin for that bet.
$25.96 close, so the call expires, I'll most likely get put on, I'm writing calls on MSFT anyway, so I'll just write additional calls. 4 day trading week next week, hopefully get a decent premium, if not I'll sell the monthly, great month this month, the year as a whole was not to good, hopefully next year will be better, Happy New Year all!!!!!!!!!And go Giants!!!!!!!!
Hi all, Nicky as you like doing puts and calls on the same stock you might give some thought to an Iron condor. If you are not familiar with them they are easy and basically a spread on calls and a spread on puts. I opened two today. PCLN trading around 472— Put side sold to open the 440, bought to open 435 Call side sold the 500 and bought the 505 The total credit is .30 You don’t make more than with a regular vert spread but by doing them this way you only use about 75% of the maint needed for a reg spread. EX; I have these two with 5 points diff between the strikes but instead of 10 needed it is only 7.50 ea I did these as a +.30 credit spread. So profits are .30 div by 7.50 = 4% for a week trade (actually 4 days) My other one was with GOOG Lots of ways to skin an option. Just use caution and leave good cushion. Ihaveoptions, I am starting a new POST today
27 comments:
Merry Christmas to all, my account shows:
12/23/11 Expired 22 MSFT Dec 23 2011 26.00 Call
I guess I dodged a bullet??
Merry Christmas to all
Nicky, I had 250 and 201 were assigned..lol Getting assigned isn't always a bad thing. EX; if the stock drops down to 25.95 in the morning, I can buy it for that amount to replace the shares I owe and i had sold them for the 26 strike? One down side is that there are commishions coming and going so ??
I know this has been discussed before and I know it's your blog Jerry and I much appreciate your efforts, but it would be very helpful if you would post at the end of the previous thread that you are opening a new one. If I don't refresh my browser, I don't see the new thread til I do and miss some of the 'action'. Thanks for your continued help into the new year. I'm up for the year quite a bit, a refreshing change from my previous trading experience and I can attribute it directly to this blog!
Hi all. I often get questions regarding assignment. The question is often associated with a negative thought. This past week I started with 250 of the MSFT weekly 26 strike. As MSFT was bouncing around 25.98 during the last few minutes and right at the close it jumped to 26.03. I did not get a trade in on time so I let them ride. Of the 250 options 201 were assigned. So this morning I went on line and ‘bought to cover’ the shares. The situation turned in my favor as MSFT opened down some and I bought the 20100 shares for around 25.945 The good part is I had sold the shares at the strike of 26 and bought to cover them for 25.95. So in this case I made nearly a $1000 by being assigned. Now if MSFT had risen at the opening I would have lost money but this time it worked in my favor. The end result was positive as I of course keep the amount I made when I had sold the 26 strike in the beginning. I made money on the assignment and then I sold the 26 strike again this morning.
The point is that there is no reason to panic if assignment is near. Many wonder what will happen if I need to come up with a 100k or whatever amount immediately. Your brokerage will let you ‘buy to cover’ the shares. The outcome can turn into a loss if the stock jumps up on the next trading day but it also might drop some as MSFT did today.
Jerry, I assume you could also put in a good until cancelled bid after hours and/or before trading the next day that would have bought in your favor to see if you can be out of the trade for a profit, and then if it doesn't close you can take what the market offers, in your case a profit? Does anyone know how long that you will be allowed to trade yourself before your broker will sell you out at whatever price then exists? Having never been assigned, I'm still learning. Thanks.. Jim
Jim, As i undestand it you have to square it away before the end of the next trading day. That would be today. so i assume you could watch it if it was falling and close even more to your advantage? For me I like to get it taken care of.
Of course a stock like AAPL or GOOG etc could open up many dollars and ouch, of course it could be down and then it is yea! Those kind of stocks I would advise to take care of business before the close on the last day of trading. Remember that even if you have to close it at a somewhat higher price, the new one you are going to sell hopefully will also be at a higher price..
Thanks Jerry
My order to sell $26 MSFT weekly did not go through @ .24, I should have taken .20, hopefully tomorrow I'll get the trade in.
Jerry, Thanks for the explanation on assignment. I'll stop worrying so much about it and enjoy the ride.
Took a risk today, sold TTWO $14 Jan puts for .75, TTWO is trading @ $13.41, I like this stock, 16 trading days for it to reach $14, worse comes to worse I can just roll.
Nicky, you are certainly playing with fire. I have watched TTWO for awhile but still no earnings and will they ever? From a trader that used to sell puts over the current price and often watched the stock slowly drop away and to close them gets more and more expensive.. Pretty soon you either bite the bullet or end up rolling out to July etc just to try and get even. It is like using a hoola hoop for T-paper... There is no end to it. So be cautions.
So the last 2 weeks I've seen MSFT close @ $26 and $26.03, my order to sell this weeks MSFT $26 call is just not getting filled, but what did get filled is STO MSFT $26 weekly put for .28, hopefully MSFT goes up a bit in the next 2 days.
To ALL. Anyone have calendar spreads on AAPL like a lot of us have on MSFT? If so, what strikes are your LEAPS and what strikes are you using for your weekly short puts.
If I don't post in the next few days, everyone have a Happy New Year celebration and hopes of making more money in 2012.
Thanks to Jerry and everyone who posts to this blog.
Sorry, I meant calls on that AAPL trade
Sold to open MSFT $26 weekly call, only got .10, but what can one expect 2 minutes before market close, one day till expiration?
So I sold the $26 call and put, tomorrow should be very interesting, MSFT closed @ 26.02 today, if it remains unchanged tomorrow I will be happy.
Nicky-Pretty good for two days. I'm trying to get .20 for next week but so far no luck. Maybe just will go out to Jan 21 at .60 + and let it rest for awhile. Looks like it might settle a bit over 26 again this week.
You might think about selling the weekly put as well, I have both open now, it looks like the put will expire, and I will have to roll the call, I think there is a greater chance of the call running away, rather than the put, and in either case you can always roll.
@Nicky
So what you are doing with MSFT is that you own the 26 LEAP and are selling short the weekly 26 CALLS & PUTS?? A sort of straddle position.
By the way where do you get your pictures.
You got everything right except the LEAP part, I own the 25 LEAP, some pictures are of girls I am "familar" with, others are just random girls from the net.
@Nicky
I read that you must be a Giants fan. Being an Eagles fan and hating the Cowboys, I'm rooting for you guys this weekend. Just to bad it couldn't be the birds. Watch out next year though.
Giants fan?!!!Giants fan?!!!
A fanatic!!! Waiting for this game is killing me, I don't want to look past the Cowboys, but they can beat Detroit too, after that, who knows anything can happen, they won 3 straight on the road in 2007, Your team is the best of the ones not to make it in, as far as next year, I trust our GM, I think the team will improve next year. The spread is -3 Giants, that's a sure thing, I'm going to use all my margin for that bet.
Back to options, MSFT is right at the sweet spot, will both my put and call expire??
$25.96 close, so the call expires, I'll most likely get put on, I'm writing calls on MSFT anyway, so I'll just write additional calls. 4 day trading week next week, hopefully get a decent premium, if not I'll sell the monthly, great month this month, the year as a whole was not to good, hopefully next year will be better, Happy New Year all!!!!!!!!!And go Giants!!!!!!!!
Hi all, Nicky as you like doing puts and calls on the same stock you might give some thought to an Iron condor. If you are not familiar with them they are easy and basically a spread on calls and a spread on puts. I opened two today.
PCLN trading around 472—
Put side sold to open the 440, bought to open 435
Call side sold the 500 and bought the 505
The total credit is .30
You don’t make more than with a regular vert spread but by doing them this way you only use about 75% of the maint needed for a reg spread. EX; I have these two with 5 points diff between the strikes but instead of 10 needed it is only 7.50 ea I did these as a +.30 credit spread. So profits are .30 div by 7.50 = 4% for a week trade (actually 4 days)
My other one was with GOOG Lots of ways to skin an option. Just use caution and leave good cushion.
Ihaveoptions, I am starting a new POST today
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