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.











Thursday, May 16, 2013

Hi all, Well this time I am really back and looking forward to posting my trades, answering question and getting the Blog back to producing winners. I am still on a BOD and have some other duties but now I am trying to make the blog a bigger part of my duties. I love the interaction and trading ideas offered here. I apologize for being absent so much but other duties have distracted me and now I am back on track. First of all I have again changed directions. As most of you know I started trading daily around 15 years ago. I have made a fortune and lost a lot of it. I have been up and down as I tried different methods. I have settled on a method that I now feel offers some great rewards with as little risk as can be expected. I get many request and notes asking how I started with selling puts and now do spreads. The answer isn’t simple but mostly it revolves around the ability to trade weekly options. When I started there were no weekly options. Most of the rules I suggested were pointed toward how to trade monthly options. The stocks I now use (listed below) work best with weekly options and offer a good ROI (return on investment). I try for 1% a week and will show how I bump that up some. OK, so what do I do now, it is nearly always CONDORS. I have quit doing the longer term spreads. They work but I find that all too often the stock moves a bunch and then I’m trying to catch up and then the stock fall and I caught up for nothing. That of course is condensing it but now it is Condors pretty much total. That of course has me trading both puts and calls. So my rules for selling puts as outlined in my book still apply and give me some basic rules and guidelines. For those that do not know condors. Here is a simple explanation, Say the stock is at 500. I buy the 550 put and sell the 555 put. I hope to make .05 I then or in a combination if your brokerage offer that. I will sell the 545 calls and buy the 550 calls. So this condor has 4 legs. I buy one put and sell the next put & and I sell a call and buy a call. Only one side needs maintenance as only one side can end up in the money. If your condor has strikes that are 5 points apart, as above, then the maintenance is 5 for each option. If you have an account of 10K then you can do 20 options. If you can make .04 on each side that is .08 total in two or three days for 1.6% ROI in a week. I get request often for what stocks I am now using. Well for the current condors I use –AAPL, GOOG, NFLX., AMZN, XOM, TSLA. These stocks offer decent premiums and have weekly options. One golden rule for those not used to doing condors is (and this apply to most positions) open position no sooner than Wednesday. Don’t violate this rule.. you can make plenty of money waiting until Wednesday and you will avoid losing your bankroll. Example I was looking at GOOG on Monday and thinking maybe I will open a positions. Well on Tuesday goog moved a bunch and yesterday it moved 27 or so points. If I had done the Monday position I would be losing many thousand. I was thinking of doing 90 of them. But when I look today there are good positions and only a day or two left! With the politics and the rest of the world situation there is no reason to push the envelope. Tomorrow I will write on how to correct a bad position. Good to be back Jerry