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, May 30, 2011

Next week plays

Hi all, in the final comment of the last post I wrote my ideas on when to close. If you have not read it, it has some answers to previous questions of when to close and how.
For next week. it is a short week of 4 days...
I am looking at the following. I will judge if I will use any or all depending on the mkt and what is happening.
These are not in any order!
NFLX @ 264 240/235---290/295
GOOG @ 521 490/485--545/550
AAPL @ 337 310/305--355/360
PCLN @ 501 470/465--535/540
AMZN @194 175/170--215/220
BIDU @134 120/115
SPX @1331 1250/1245--1380/1385
OEX @ 590 560/555
I might still use these same stocks but adjust the strikes if the mkt is up or down etc. These of course are not the only good plays out there but what I am looking at. If the mkt is really weird tomorrow, I will let it rest until Wednesday etc.
Good trading all
Jerry

Friday, May 27, 2011

Market closed Monday

Since the market is closed on Monday, I would not rush into positions for the coming week. A three day weekend with the world still in turmoil, too many things can happen! My advice is to wait until Tuesday or even Wednesday.
I am liking the usual suspect with weeklys. NFLX, AMZN, AAPL, SPX, PCLN. There are more but those are the ones I check first.
The simple secret to options (from my point of view) is leave lots of cushion, limit your goals to reasonable ROI, Don't put all your maintenance into one position, control time as best as you can (weeklys).
The game plan for option trading is to stay in the game. When you break some of the above guidelines you put yourself in jeopardy. It only take one of two positions to turn against you and you will be one of the statistics that are used to demonstrate the danger of options. With the leverage options offer, it works both ways.. Just plod along with boring crumbs and you will get wealthy and you will sleep better.
Good trading all

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.

the blog?

Nick, you are a thrill seeker? good luck.
the blog has been down most of the morning?

Sunday, May 22, 2011

A free, extra chapter regarding spreads.

Hi all, I get many many questions regarding selling puts or calls in a spread. I have written a 13 page article explaining how I do them. It is of course not the definitive way to trade spreads, just what I am doing with very good results. The extra chapter to the book is free to anyone that wants it. Just email me at

putman3232@yahoo.com

and request a copy. There are probably many of you that have traded spreads longer than I, but the 13 page chapter will get beginners going in what i hope is the right direction.
I will put this on the front page of the blog for all to see. You will have to excuse any mistakes in editing as I just wrote it off the top of my head... and let me tell you, that is uncomfortable..lol
The article does reference the book often so if you have not bought the book, pick it up and you will have the complete guide to our way of using options.
Jerry

Saturday, May 21, 2011

Plays for the coming week

Hi all, Well a successful week has passed. I hope all of you found the same. For the coming week I am looking at a few weekly spreads. Mostly puts but some possible call spreads.
I will wait until I have clear feeling for Monday or wait until Tuesday or even Wednesday. Like most traders I have to fight the feeling that "I should be trading something" It is ok to wait until Wednesday or even Thursday. You might have to take .07% by waiting but you do eliminate a lot of TIME, and as we know, time can equal trouble. So I'm looking at some aapl maybe 305/300
AMZN maybe 170/175
bidu 105/110 and calls maybe 205/200
pcln 470/480 calls maybe 555/560
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I will watch and as time goes by I will move the strike a little closer.
Good luck all
Jerry

Wednesday, May 18, 2011

A great time to pick up some free money

Hi all, This is the best time for trading. Stocks like PCLN etc, you can leave lots of cushion and still pick up .05 =00 1% in a three day trade.
These are of course spreads for this week.
So do some looking and pick a good stock and jump in.
Jerry

Saturday, May 14, 2011

what's with the blog?

Hi all, the blog seemed to have derailed. I do not know what is up with that but I hope it gets back on line and squared away soon.
Looking at next weeks options, I have to say, it is possible to wait until even Wednesday and get one percent returns using spreads with weekly options with stocks like PCLN. The stock is trading around 530 and on Wednesday and maybe Thursday morning, you should be able to sell a put 40 points below the existing stock price. To do the spread you then buy the next strike below that. You will end up with maybe the stock trading at 530 and you selling the 500 strike and buying the 495 strike. The goal is to take in from .03 to .05 cents. As the maintenance will be 5 for each opition, which equals for a two day trade could give you a return on investment (ROI) of from .06 to 1%. And that is in a one-day or two-day trade. AAPL and NFLX etc may prove to have some like opportunities. If you get a .06% ROI in a week that is over 2% a month and that is more than except able in these times. Do not risk your capital on risky plays. Take the easy money (crumbs). There really is easy money out there but many traders refuse to see or to take advantage of the opportunity.

Wednesday, May 11, 2011

The week is winding down, finally

Hi all, Wow, I take a day away from the market and you guys have been busy trading and posting.
Some good points regarding different plays. I still have my SINA naked puts. Not real happy with them but don't want the loss. Tomorrow will be interesting. I will roll them down if necessary.
I have lots of AAPL spreads. Tomorrow i will close most and open new ones if all is calm in the mkt. I like the spread of 335/340. 6 pts of cush with 2 days.. A little spooky so maybe the 330/335 for .04cents.
We don't have to wait for new options as they are already on line and with plenty of open int.
NFLX, trading around 239+ maybe the 225/220 with 2 days to go. Just trying to pick up crumbs.
I try to avoid over-thinking the market. Who know why OIL is down, or commodities are down and some consumer items up. To me these are just what they are. About the time i think i see a trend, then the tide turns and all that was up is down and all that was down is up. The pundits will tell you why, but where were they before it happened? I just take what the mkt will give and pick up the crumbs. You will never out-think these items. You might out-guess but recognize that it is a guess. As I have said in the past, mutual funds with computers bigger than your house...have no idea what will happen tomorrow. Just keep picking up the crumbs and let others try to out guess tomorrow.
Jerry

Thursday, May 5, 2011

Well some interesting comments

Hi all, Reading the comments from the previous post was interesting. Some bad stories and some good...
Regarding the bad, a common thread of the bad demonstrates is a common mistake.
a. Don't use stocks that have no history...especially chinese!
b. Leave lots of cushion.
c. Have rules and follow them.
d. Even with a spread you can use the doubling rule. If you think the stock will or might continue to fall, only close the sold put or call. leave the bought in place to capture some of the rising prem. If not much time left close both.
e. Research the stock you are using. i.e.: earnings etc. don't get caught without knowing what is common knowledge for all...
f. Don't take flyer's on unknowns.. know your stock
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These rules / guidelines are to help protect you when things turn against you. You want to minimize your losses, not watch them continue to run. The goal is to make a SMALL profit but a consistent one.
Hope the reminders help.
Jerry