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.











Saturday, August 27, 2011

A good market of just short covering?

Hi all. My AAPL calls and puts did very well this week. No Jobs and fewer jobs. For those of you playing AAPL, it is a testament to the power of a stock that has tremendous earning power.
If you are looking at a vert put spread for the week, the AAPL 355/350 AT .16 cents is a 3% roi. If you just like naked puts the 355 is well over 1% per week. For these I would see how the open is this week and then do something on Monday as it will fade fast if AAPL is up. If down, wait and let is settle some. AAPL is heading towards a great earnings season and they are going to bring on line the Iphone 5. It will be big and PR showing lines around the block will be on all the channels. I have a ton of the Jan calls between the 380 and 400. I am expecting AAPL to be past 450 by Jan. that is Jerry’s guess but it should happen.
I see many are trading the SPX etc. Do be careful as Europe is still hanging over us. I have a friend in the investment business and the talk in his business is Europe, Europe. A major default of one of the PIGS (Portugal, Italy, Ireland Greece Spain etc. would bring havoc to our markets.
So the point is to keep you wits about you and don’t just jump in. The water is deep and full of crocodiles.

Sunday, August 21, 2011

Here comes Monday


HI all, I have been busy with some projects so I have missed much of the conversation.
Next week is going to be interesting with Libya maybe falling? If so, oil should drop and maybe gold and that means an up market. We will see. I still have my AAPL Jan and I have rolled the Aug calls into Sept. I am hoping that aapl makes a good move pretty soon. It is one of the best performing stocks on the exchange and the low PE has got to attract the big players. But then who knows. Come Oct. the calls should head up as we get close to earnings. AAPL will blow them away again. I can sell the Oct, Nov Dec and Jan so plenty of time if all goes right.
I still have some POT and the same plan with them. I also still have some V with the Jan 90 so I will be selling calls soon with those.
I had some 355/360 apple spread and I rolled them down to next weeks at the 335/340. I expect more strikes to be offered soon.
I still have no feeling for the SPX etc. With Europe just too much of a gamble either way…
Good luck all and don’t just trade. Trade with a plan on how to cover or roll or hold. But do have a plan with good stocks.

Sunday, August 14, 2011

A new week coming

Hi all. Well a new week ahead. For me I will wait until at the earliest Tuesday, to make a move. I have AAPL Jan 400 that needs some calls sold, but, again I will wait for direction. If Monday is up and also Tuesday then I will make my move by selling calls for this week. Europe is a mess and we are not much better so guard you money, don’t be in a hurry to make a move.
Be careful in this market

Thursday, August 11, 2011

wow again,

I have been doing nothing but stocks and options for 15 years and I have never seen anything quite like this. Yesterday down 600 today up 300. Every day it is the opposite of the previous.. How to play this.. do it like porcupines make love, very careful. Even if we are not at the bottom we have to be so close that it probably doesn’t matter. I try to not hit the bottom or the top. Just make money and trade careful. I see that many of you are still trading the SPX etc. To me it is just to risky. My stock positions move maybe 10 points or so and the index’s can move 50+ in heart beat. It is just to wild and unpredictable.
Today I opened several new positions all calendar spreads.
IBM bought the 1/12—165 sold the 8/20 170
POT – bought the 1/12—55’s sold the 8/20—57.5
These made around 10% ROI. I will continue to sell calls on the long calls. These plays are added to my BIDU & AAPL positions.

Friday, August 5, 2011

Wow is all I can say

Hi traders; what a week long ride...
I see many of you lost some, by rolling at the wrong time or not rolling at the right time…
I got lucky and all of my positions expired worthless. There were certainly some touchy moments. Lesson’s, I am going to take from this is to follow my own advice!! Do not trade but if you just have to.. trade later in the week and for little profits and lots of cushion. As mentioned in some other post, for me I will avoid SPX etc until things settle down around the world. The world is just a mess, as never before, one countries problems effects the whole world. For me I will continue to pick good stocks and at this time that is AAPL… I like my calendar spreads as I am treating them like covered calls. The difference is that I get full premium and only pay 1/10 the price for the use of the stock. As we have discussed there are some drawbacks, but my 390/395’s and 400-405’s all expired worthless and maybe Monday I will sell the appropriate calls for the week. I have some paper loss but by selling weekly calls, options are paying me better than 10% weekly to wait for the stock to come back. It is like dividends on steroids.
If opening new positions, try to wait until late Wednesday. By them you MIGHT have a feeling for the mkt. don’t start guessing if the mkt opens big Monday. The premiums will still be there later in the week. You will sleep better and have a better chance of making some money. These times, with Italy etc jumping all over the place, it is time for caution.