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, November 19, 2011

Some thoghts on this market

Regarding the overall market, this Europe stuff keeps affecting the market, next is Spain and France. My advice is leave lots of cushion and leave as little time as necessary. You don’t need to take excessive chances with options to make money. Even with the Europe problems etc, there is still plenty of money to be made with options.
Nicky; I would be careful following that advice regarding MSFT. That is a lot of time to give for bad news to come out. I have over 250 MSFT in my calendar spreads so I like the steady action of MSFT but caution should be the by-word with any naked put. There is a name for traders that take bigger chances on what ‘seems’ to be a safe play… they call them ‘broke..’ so be careful.

Monday, November 7, 2011

Stock selection.

Hi all, just a reminder that there are different stocks that are appropriate for different situations. I don’t use stocks for a calendar spreads that I would use for vertical put spreads or for naked puts.
Don’t fall into the rut of using the same stocks and trying to force them to fit where they don’t belong. An example is AMZN. A great stock with good premiums. But that is ok ok for a short play such as a one week put or even a vertical put spread. The same might be said for even RIMM or FSLR. There are lots of examples of these kinds of plays.
For a calendar spread where you might plan on owning the long call for a year or so, you don’t want the roller coaster ride associated with hi-PE stocks.
I am listing the stocks that I am now using in calendar spreads. If they fit your profile for investing, jump aboard. There are lots of others that fit the profile but these are some of my favorites. They offer decent premiums, lower volatility and especially- WEEKLY options.
AAPL, CLF, IBM, KO, MCD, MOS, MSFT, ORCL POT, SLB, XOM