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.











Wednesday, April 25, 2012

Great APPLE earnings

Well AAPL reported blow-out numbers (again) My free advice, don’t bet against this company. A lot of sellers in the last two weeks sold as they either expected a negative surprise or believed the story of slowing sales etc. Another good performer is GOOG. I am using both right now and only those two. Not always a smart decision to limit an account to only two stocks but they provide consistent rewards for those that use them. I am doing mainly Vertical (or calendar) spreads. I am buying the Jan 570 and some 580’s and selling the 610 for this week for both stocks. If the stock gets past my sold strike more than a few dollars I will close or roll out to next week for a credit and a higher strike. The idea, which is hard to stick with in times like last week, is to sell calls each week 15-20 points over the existing stock price. Try to not get distracted by the normal up and downs. Just make a deposit each week and ride the apple train to great rewards. Lots of ways to play this market now that earnings for AAPL is past. You can make a pretty easy 1% a week selling spreads both put or call. If you combine them you have an IRON CONDOR. The beauty of those is only maintenance is charged on one side. So you get a free play at the other end. You open these on a Wednesday and can stay around 30 points away from the stock price and still make 1% on one side and with an Iron Condor you get another 1%. 2% a week is darn good ROI. But these need a little more watching than a Diagonal spread. But plenty of money out there for traders that pick their spots with care..

Tuesday, April 17, 2012

Wow, take a few days off and I lose control of the market

Hi all, This morning I got back on line after being away for a few days and all heck breaks out. On Thursday I could see that apple was not going well. I closed my position as I knew I would be away. So I saved some with a small loss but was surprised to see the big drop yesterday. Today I re-opened some new positions.
I now have an Iron Condor with aapl for this week
550/555 puts
640/645 calls I received .21 for a 3 days 4%
I also reopened a Diagonal spread with AAPL for the Jan 570 and sold the 620 for this week.
I hope all fared ok and didn’t panic with the AAPL mess. If you look at these as a long term play all should be just fine. Using the Jan as a bought position, AAPL can go up or down but you keep making a weekly profit. Even though the stock itself moves around, try to be patient and take the weekly sold profits.
Now I have to go back and check all the posting.

Tuesday, April 3, 2012

Apple rules again.

Where can it end? Today AAPL received analyst upgrades to between 900 and 1,000 within a year. As Kramer says, ‘that price is not unreasonable, as divided by ten it would be 62 and is it possible it can get to 100, Yes..’ I am a believer and as many of you have also done, I am riding the AAPL train into some great returns. I see some of the regulars on the blog are doing different stocks and they seem to be working also. For a while I am sticking with AAPL and playing the Bullish spread.
I have bought the Jan 2013 580 strike and selling this weeks 625 strike. Today AAPL jumped up around 11 points to 629. So tomorrow as the Time Value leaks out some I will either close or wait until Thursday and roll the 625's into next week’s new strike. The one I choose will be determined by the current stock price when and if I roll.
Glad so see some new faces (names) on the posting. All are welcome and don't be bashful if you have an idea or question. We are always learning and willing to share the little knowledge we have.