Hi Traders, It looks like all of my trades are going to expire today. I hope you guys are experiencing the same. I do have a few that are close so I will have to keep an eye on them.
Looking forward to next week means that we are working are way into the earning season. Keep that in mind as unexpected bad news can bring down a lot of stocks. So it is the season to use good choice and don't bet on what you want to happen. Bet on what seem to turn the odds into your favor. Settle for less during the next couple of weeks and watch your money grow.
I'm not sure what to think about regarding the possible shut-down of the government. It could be another thing that tries to stop the bull market. So far, wars, earthquakes and gasoline high prices have been unable to dent the bullish trend. But one day it will end, so as I said previously, don't be the one standing up when the music stops. It is the time to be somewhat defensive. There is still crumbs out their...
71 comments:
Sold TSLA Apr $25 puts for .35, 5 trading days to expiration......
WASHINGTON (AP) -- Google Inc. won government clearance with restrictions Friday for its $700 million purchase of airline fare tracker ITA Software in a deal that will give the Internet search giant a key role in online travel.
I wonder what effect his is going to have on board favorite priceline (and google).
good question Dr3z. I will certainly put that into the equation before opening any new PCLN.
Thanks for the heads up Dr3z. PCLN took a couple dips this week, but made for a couple good spreads, Tuesday and Thursday for me.
Chris
Keep in mind that Google's new purchase won't be effective with EC approval, and they've proven tougher than the US on lots of mergers.
Of course, Americans are exceptional (just ask one! like ME. LOL) and the US market may decide to just ignore the EC issue.
WITHOUT* .. that should be "won't be effective WITHOUT EC approval".
With PCLN down a little today I just put in an order to spread the 425/430 @ .06 With pcln around 503 that give 73 pts of cush with 4+ days to trade. If it goes thru that will be around 1.1% for 5 days of trading left. Loods good to me.
Jerry
I'm having a problem convincing myself that with a VIX this low, selling puts is a prudent strategy to enter into. I really love the strategy, but as the VIX enters into these very low levels (it's getting hammered today even though it's off its low for the day), the risk vs. reward thing tends to tilt more in the favor of too much risk. The risk being selling puts at these very low VIX levels and then some bad news comes out that spooks the markets sending the VIX surging higher. I much prefer selling puts when the VIX is higher than lower. Anyone else have any comments on this positive or negative?
Oil is the Achilles' heel in this market. I think it's screwing up everything. But today oil down so lets hope it goes down further.
Did anyone see Cramer’s monolog, if you will, on Mad Money last Friday? Cramer, did not turn bearish on the markets, but he did say that he was less bullish as long as oil is above 110. He said, if oil remains above 110, sell aggressively into any rally and that his charitable trust fund has its largest cash position now than its had in a long time due to his worry of what effects the rising cost of oil is going to have on the markets. If oil does pullback, I don’t think it will stay down. There are many things that affect the price of oil and it seems that 8 or 9 out of every 10 are bad…meaning they cause oil to go higher.
Tried PCLN, RUT weekly today,
It is so hard to get put spreads filled today.
Will try again tomorrow.
@DaveG,
Even though the VIX is down, I think you have to look at the individual stock volatility numbers. Not all stocks IV will be in the gutter.
Dave
Dave G, I would not consider anything that Cramer says to be constructive in any way, shape, or form. He is a TV character. Yes, he manages money, too, but he is a character. Boo-yah! Bam! Wowsers! That kind of stuff is just bologna and he wants to attract emotional traders and investors. Don't mean to sound harsh, but just calling it like I see it. Cramer is NOT a financial genius.
Sold AAPL weekly spread.
315/310 0.08
4 more trading days.
7% probability of touching 315
Fingers crossed.
Do you mean TST? That's a penny stock though.
@Kenny:
So glad you brought up probability. What's your "rule" for using it?
I'm a total noob at the concepts. But I am slowly making my own (along with Jerry's). And for weekly spreads I like 85%+ success rate. Do Is that too aggressive? Yours is at 93%
Also anyone care to share their cushion % rule for weekly's?
Thanks!!
Dave, That's true...good point, BTW, cool name you got there!
Mark, I know, I know. I knew I was opening myself up when I posted that message. I'm the brunt of a lot of jokes whenever I take a trading class and admit to watching CNBC. I have heard just about everything "joke-wise" about Cramer from admitting I watch his show. Now, I only listen to his 10 minute commentary at the beginning of the show (which is normally about "big picture" stuff) and then I turn it off. I don't care about his individual stock calls. I don't mind harsh words. In this business, if I'm doing something wrong, I want to be chewed out, so I can correct it. Hell, there have been many trades that I have taken (that had less than favorable outcomes) that I now wish somebody had slapped me alongside the head and directed some harsh words in my direction that would have prevented me from taking the trades. Your words ring load and clear with me.
Kenny, you're gutsier than me. I'm short the 300 puts in AAPL and added more to that position today on AAPL's relative strength action today compared to the overall market. I thought real hard about the 305's (as the 200 MA is right above it), but went with the safer trade @ 300. 3 days to go...hang in there AAPL. I will probably not sell any puts on AAPL for the new weeklys coming out on Thursday as they report earnings AMC on 04/20. If I do, I will close out the trades before market close on 04/20. I do not want any open AAPL positions when they report earnings AMC 04/20.
Hi all,
Noobie here. What brokers are you using with weekly options? Also, any comments on Option Monster vs. Option House. They seem to have the best commissions. Monster has a pretty cool platform.
Cheers!!
P.S. Jerry - got your book at Amazon. Great read!!
DR3Z, I'm noobie too,started out my option journey recently. I like Jerry's "crumb" idea, but sometimes I become more gustier when I can't find right vertical spreads as Dave mentioned.
7% touching probability is still high to me, but today AAPL was up and market tanked,and only 4 more days left.. so I just bite the bullet.
Usually I try to trade outside 2 sigma which is about 95% at least, sometimes I go for 3 sigma.
Nicky,
"Sold TSLA Apr $25 puts for .35, 5 trading days to expiration......"
How did you hedge the trade above? Look like it's in-the-money now. Just wondering how you deal with...
@Kenny,
If that's the case then you "should" be in the clear. Using tradeking's probability calculator the -2 (sigma) is 316.08 and the prob of touching 315 is 3% now (98.37% prob of success). Pretty much at your mark.
I won't even tell you what I did until Friday! lol!!
I have questions about spreads and bid/ask. I know we most likely will get the bid, do you use market orders or "credit" limit at a price around the bid (mid maybe)? I'm still getting the hang of that part.
Thanks!
DR3Z,
Yes, now(market closed) is 3% but when I opened the position this afternoon, it was 7%, so I was a little bit concerned about it. Now is way better!!
When it comes to bid/ask, I seldom use market orders, usually start around "mid" credit, and then if it doesn't get filled for sometime, then I lower my credit. For example, if bid(market)/mid/ask is 0.04/0.06/0/08, then I started with 0.07 and lower to 0.06,0.05
@Kenny
Also (charting) I see there is short term support for aapl at 325.06.
Ive done the same except I usually start at the mid then work my way down. How long do you wait until you move on to the next? One point makes all the difference in the world!
Great stuff, Thanks!!
DR3Z, I usually give an hour or so to get them filled, otherwise I move on to the next, for weekly 5 points spreads I don't go below 0.06 as Jerry suggested.
BTW,the last time AAPL hit 315 was last December.
Lets see how it goes for next 3 days..
Doing research and found this gem, wow!!
"Credit spreads can also result in surprises at expiration. For example, if I hold a bull put spread and the underlying stock closes Friday of expiration week at a price within the spread, my short put options will be exercised against me, resulting in a long stock position in my account. The long put option does not protect me because it expired worthless.In general, if the stock price closes on expiration Friday within the strike prices of my vertical spread, it will result in either a long stock position or a short stock position in my account the following Monday."
Has this happened to anyone???
HI all, Drz, it has not happened to me but could very well happen. If you were on top of your positions you would see it dropping into ITM. I don't let that happen. My sold put is only there to lessen the maint and for that 'WHAT IF' NIGHTMARE.
I also have a bunch of the aapl 310/315 spread. I like it but it does need watching. I also have some NFLX 205/210 and the scary one is goog 510/520. the bad par to the goog is earns come Thur night or Fri... But the good is they have not disappointed in a long time and there is 50 point of cush with 3 days to go.
With the appl, I did them today and got .10 for 2% Roi in 4 days. Hard to argue with that.
I have to admit I fought with 'spreaders' for years, but since weeklys have come on board they seem to make sense. The main advantage is that you know the maint up front and the risk. But still there is a time and place for both types of trades.
Jerry
Jerry,
For those weeklys, do you usually let them expire or close the position on Thursday?
@ Kenny
No hedging here, it was on this board where a poster commented and said he used a method called the "wheel of fortune" where he would keep writing puts until he got assigned, then keep writing calls until the stock got called away, I'm using this method with stocks I like, not just chasing premiums, before I got started with options, I would put in limit orders to buy stocks, I would say 80% of the time the orders would expire, now I'm selling puts on stocks I would not mind owning, I would rather the contracts just expire, so I can keep repeating, but if I get assigned it's not a problem, last month I was assigned BGU @ $75, I wrote $82 covered calls, today BGU closed @ $81.41, so I get the increase from the stock price + premium to enter and exit, this method is working well for me.
Kenny, I usually let them expire. I try to keep in mind that I'm not good enough to get exact in moving and rolling up the position. I get tempted but I try to remember that most of my losses have come from rolling to soon or to high.
Nicky, Not trying to discourage you as wheel of fortune or wheel of luck..lol seems to be working for you. I have done this type of play years ago and made lots of money until i lost lots of money. The downside is when you get assigned BGU at 75 and then Monday it is 65 and then Tuesday 63 etc etc Traders (me also) think, "i would not mind owning appl at 130 etc Well ask me again when i buy it at 130 and it is then trading at 115 or 95 etc. That OK to own sentiment changes fast when the stock continues to drop. It is a viable trading strategy but be careful. It dropped down to you strike for a reason and that same reason may continue to pull it down.
Looks like the BULL is in charge this morn. Lets make some money
Jerry
Jerry,
Yesterday, I was trying to execute the same spread order on Apple (315/310) and NFLX(205/210) that you had. The net credit I could get was only 2 cents and 1 cent respectively on market order. How did you get $.10 for AAPL? I am not questioning your order, just want to learn from you, since couple cents of credit spread makes a huge difference in return.
Thanks,
TK
About the wheel of fortune strategy, I think of that one more as an alternative to owning the stock without using stops. I know many feel appalled that someone would own without having stops, but if you're trading very long term on fundamentals and you are sure AAPL will reach $500, stops are a short term nuisance. Using the wheel of fortune method let's you make some additional money during that journey. I have friends that do this and have owned AAPL for many years, doing much much better than I have, but unfortunately I don't seem to have the stomach for it, once a stock dips I get nervous and thinks it won't ever get back up.
At what point do we close out a "failing" spread? When the premium on the sold put doubles? A stop triggered for me and the loss was over 8 times the original premium collected (0.02 credit turned to 0.17 debit). I noticed that it is due to the bid/ask spread and market orders, but do not know how to avoid it. We automatically lose a couple cents on the bid/ask when we open a spread.
For naked puts with a failing trade, the premium doubling trigger allows for a little over a 2X loss. Any thoughts?
Dukes,
Are you using "stop" or "stop limit" ?
"stop limit" order will let you set a limit price not like "stop" order of market price.
That's what I understand...
Careful, a stop limit may prevent you from getting out at all.
Hi TK, not sure where you had a problem. I entered the trade on Tuesday morn as listed below. I wish I had done 50 or more but just a cautious move.
04/12/11 Bought to Open 20 AAPL Put
Aapl Apr 16 2011 310.00 Put AAPL Apr 16 2011 310.00 Put $0.22 $11.95 $0.29 -$452.24
04/12/11
Sold to Open -20 AAPL Put
Aapl Apr 16 2011 315.00 Put AAPL Apr 16 2011 315.00 Put $0.32 $3.00 $0.35 $636.65
-----
for the NFLX I did them on Monday as listed below. Again I'm not sure what the prob was. I do not go at the natural. I look at the bid/ask and make a judgement call on what might go through. If the trade hangs up for 30 mins or so I lower it a penny.
04/11/11 Bought to Open 30 NFLX Put
Nflx Apr 16 2011 205.00 Put NFLX Apr 16 2011 205.00 Put $0.16 $13.45 $0.44 -$493.89
04/11/11 Sold to Open -30 NFLX Put
Nflx Apr 16 2011 210.00 Put NFLX Apr 16 2011 210.00 Put $0.24 $4.50 $0.52 $714.98
----------
Dukes, I have not entered any stops for the spreads. I do watch them and keep evaluating them. But generally I leave so much cush that it has not been a problem. And there is the lower bought put that helps off-set the sold put prem.
Jerry
Using an order that if the last price rises above X, then the market order is initiated.
Do any of you trade the SPX? I was taking a look at its put chains this week. But I chose not to since I'm not sure how volatile ETF's can be.
Thanks!
DR3Z, i have SPX iron condor expiring 2 days later, I made some money out of it. I like those SPX,RUT,NDX since they are European Index.
Thanks Jerry, Looking at your comment and other's on this board, I think my problem was that I have always traded my spread at the market bid/ask price, and it was in the afternoon when the price of Apple had stabilized and the premium was probably a lot lower than in the morning.
Hi all
Is it off limits to share who you're broker is? Or what tools : platforms you like?? No one answered my Q above. I'm moving to Opt House for the best prices and weekly options.
Again, any special tools or screeners or do most folks here stick to crumbs only?
Cheers Traders!!
Bald, I'm on ThinkOrSwim and find it very good, but I came from Scottrade and that is pretty basic. TOS has some amazing simulation tools.
i'm at TradeKing; low commissions is about the only plus; the charts and tools are not very good; supposedly they are is the process of improving their tools but no timeline.
i just looked at the Option House site - the commission comparisons on their site are a little outdated; TradeKing recently lowered their commissions on options so they're very close to Option House's rates; i.e. 100 contracts at TK=$23.95, at OH=$23.50
I went from TDA to TK and back to TDA with a waste of 3 weeks. The main deciding factor is the margin. For example I needed $99,500 in the same account just to do a 10-contract $315 strike 3-day $0.20 premium naked put while the prevailing price was $340. For spread, I also had trouble to fully utililise my capital as compared to TDA though margin was fixed at the amount of spread (surprise! - who wants to call the service all the times??). As for tools at TK, it wasn't a consideration since I have my roth & traditional IRA with TDA which gives full access to all TOS tools. But again I don't trade a super lot. If that could help anyone making a decision.
Well lets hope the mkt continues to come back this morning. I have lots of puts out there roaming around. All look safe and sound. But I have to confess that I have sorta broken one of my golden rules.
I set up a vert put spread with goog. Goog reports earnings tonight and that is always a scary situation. How i came to grips with the danger is as follows
GOOG trading around 574
I opened a 490/500 spread (64 of them) and received various amounts over the two days but average is .066
Not super ROI but only a three day trade including today's.
I have left around 74 points of cushion for GOOG on the overnight trade. My thought is even though earnings are coming and goog never disappoints i am still leaving LOTS of cushion. Just more crumbs. It would have been easy to set up a spread or reg puts around the 540 etc strikes. But that could spell disaster in a worst come to worst situation. I also could have done more aapl etc puts but the money was the same and not near 70+ points of cushion.
So there is a time to break some of the rules. But always use good sense. Evaluate each trade from the 'what if' scenario.
Jerry
Am I correct in calculating that to a profit of $422 at 0.1%?
Nic, I'm not sure what you are referring to?
My bad, I forgot about the spread part. It should be $422 profit (64x100x.066) at .7%, right?
I sold 315P myself at .48 for a 1.5% ROI, which was a bit close but I knew earnings was the week after and it is very rare that AAPL goes down the weeks before earnings (but then again, so are tsunami induced nuclear distasters).
I guess I'm trying to get my head around possible absolut returns. A spread is not particularly safer in my mind when it could mean a $100K loss, so I like to focus on the concept of cushion and actual return. The ROI to me is really only relevant if I can have all funds working at a given time, otherwise it becomes a discussion of 'yes, I got 2% but only on 25% of my funds', right? I'm curious as to how you manage to get all your capital to work all the time in order to have an average of 3% return on your money. I assume your multi year experience lets you handle maintenance without giving it much thought, but do you make an effort to always have all funds in play? It was a while ago I read the book but I can't remember any suggestions on how to spread your puts? Do you have rules for how much you spend on tech, how much per individual stock, etc? I'm still learning, thanks.
BTW, Google dropping substantially for the moment, but I doubt it will fall below 540. It seemed to have bounced at 550.
I've got GOOG puts at $545, 540, 535, and 530. They're spreads so I should survive with my shirt tomorrow. Yes, Jerry I DID read the part about avoiding earnings weeks...But you cheated too :-)
The Institutional folk on CNBC act like they will be buying *big* on the open. I will be too.
wow!, GOOG is dropping more than 5% in the after-hour session...
@Nic
490/500 is a 10 point spread so:
10x100 = 1000 is its $1000 per contract. If 64 were purchases the total potential investment would be 64x1000=64,000
You are right on, on the profit $422 (minus commissions) .
For ROI 422/64000 = .66%
As of right now, goog is at 548!! Jerry's rules are there for a reason. My lesson has been learned!
Whats everyone's guess for the open/close tomm??
HI all, Just a note to referring to the GOOG trade and why i took a small profit and went with the 490/500 spread. Cushion in any trade especially when earnings are coming is the answer. When I look for a trade like my goog trade i don't look for returns first. I look for safety first and then look for returns. If I can't have what I feel is safety then I don't do the trade. Tomorrow should be interesting. Good luck all
Jerry
Jerry,
How much is safer cushion for weekly spreads? What is your selection rule for weeklies? I first calculate ROI, and if it is more than 1% ( > 0.06 for 5 points spreads) then I check the probabilities. Looks like my method is opposite to yours.
Thanks!
Regarding brokers, I have been trading through OptionsXpress for nearly three years. Service is first rate, the resources are extensive and the fees are very negotiable. Once you have demostrated your trading pattern you can repeatedly ask for lower rates and they give in easily. Best of all, it is set up primarily for option traders.
I am surprised, after reading Jerry's book, to see that the blog is primarily about credit spreads. The line between investing and gambling is thin. What attracted me to selling puts was the simplicity, predictability and low stress that makes it more investing than gambling. Selling puts my way includes only selling them on stocks/etf's that I wouldln't mind owning for a while. The worst that can happen is that I wake up owning some high quality issues at a low entry price. So much better than going to sleep "hoping" the market cooperates and being tied to the machine all day with your finger hovering over the BTC button.
Just a few thoughts...
only the past 3 or 4 topics have had spreads discussed - spreads were rarely mentioned before this - i agree with you db that the rules outlined in Jerry's book makes it almost 'idiot-prof' way to make money on your investments - myself, my goal is 1.5% a month for a 18% annual ROI - boat loads of cushion - no problems sleeping at night - at that rate I can comfortably retire in 8.5 year - crumbs!!!!
Dukes
I use spreads for monthly. I drop the bought put far back (ie 10-15pts) since i only do this as "dirty bomb" protection. In the end i do not view this so much as a spread but a "naked put" with insurance (these far away puts are usually cheap). I do not creep up with a higher strike i still sit 20% back but accept a lower ROI (I target 2 % net ROI after commissions etc).
Selling a spread at market is a mess due to the huge bid/ask so i set a stop to sell my sold put at MKT when the ask on the sold put hits 2X what the ask was when i sold the put. I then manually go is and see what i can do about the bought put.I only started this this month so lets see.
This month: Had sold WLT 125/115 spread (0.30)and all was good then WLT tanked and triggered selling off my 125 at (0.72), ok a loss (0.42) and the 115 puts were not worth much since later in month. Then i used these 115 puts as insurance and sold the 120 WLT puts against it for (0.22) that will expire today so in the end a smaller loss 0.20 So a semi-automatic stop.
rhm
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Hi Dbenard and others. Yes some of the leanings are towards spreads. I did very few of these for my first 13 years. However with the advent of weekly puts, spreads do have their place. As rhno... said it is still selling puts, just a slight difference in that you do have a little of the 'what-if' protection. Also you have less maintenance needed in most cases. I am not advocating spreads, just using them with weekly options. The part i find that gives me some peace of mind is the low time line. I enjoy finding a position during the weekend and watching it until Monday late or Tuesday and then opening the position. The risk with the small amount of time value and plenty of cushion, really decreases quickly.
If we get into a bearish market, selling credit spreads will accomplish the same goal. Regarding spreads and my recent position with GOOG, I made over .66 % and had 70+ points of cushion and 2.5 days for the trade to run. I guess the point is that the game has somewhat changed with the advent and continuing movement toward more and more weekly puts. Also of course with many brokerages, the limits before naked puts are allowed make the spreads available to more traders. Another advantage for me on a personal level is that i enjoy finding, trading and making plays. If doing monthlys I always found it hard to watch a position for 4 or 5 weeks. Many times I am sure this led me to roll up etc to soon and sometimes this resulted in losses. The weeklys allow me to always be active. But there are many ways to skin an option.
I going golfing so you guys are in charge of the market. My positions seem so safe that i don't even have any stops in place.
Jerry
Dbernard,
I know it has been mentioned that spreads lower risk to a defined amount, but since that amount still is very high, my impression is that Jerry and others more than anything do this to get a lower maintenance and better ROI. To me, using a spread as an excuse to have lower cushion sounds dangerous.
There is another piece in the puzzle though that I'm trying to figure out, and that is how many crumbs it is reasonable to collect every month. You say that you will be able to retire in 8.5 years, could you elaborate a little on that? I understand people don't want to disclose exact numbers but I'm interested in how crumbers divide their funds into different stocks and market segments in order to make sure all available money is in work. I would be very happy with 18% a year ROI, but it only works if it is on all my money, if I on average get it on half my funds it is really only 9%, right?.
Nic - as Jerry has mentioned in previous posts and I think his book; gains/losses are what your account is valued month over month - using an excel spreadsheet, take your current account balance (let's say 50,000). To gain 1.5% a month I would need my account to increase in value $750. Compound that out by months and see when you can reach your goal. Of course, you may have months where you may get a little more and that gets you closer to goal faster or a bad month and it'll take a little longer.
I am 100% crumbing; but I try to diversify in the stocks I crumb. For example, those the expire today are NFLX, LULU and WLT. My account will be 1.6% higher at the end of this expiration period compared to the last so I consider this a solid month.
I think the crumbing is great, and I understand the gains/loss part as such, I'm just curious in the road getting there and how others are doing it.
For instance in your case you made 1.6% last month on your whole account, which is great, and with great diversification with tech, apparel and energy. Good info, thanks.
Hi,
I'm new to selling puts, but the book really interested me. I have one question about how a margin account works. Let's say I start with 50k$. I find four stocks that are currently priced at 50$, sell May 40 (20% lower) puts for 0.17$. The margin requirement would be 4.17$ times the number of puts. If I want to divide my 50k$ equally between all four stocks I would have 12,500$ per stock, so 30 puts per stock, am I correct or if I can buy more because it's a margin account?
While I wait for my puts to expire worthless, can I invest my 50k$ in a money market fund to earn interest?
If in a week from now, all of my stocks have tanked by 10% (and let's assume the premiums haven't doubled so I don't have to buy them back), will I be facing a margin call?
Thank you
Hi Maud
1 in the first paragraph you numbers are pretty much right on. Except your question regarding the margin account allowing you to do more is wrong. Your margin account is what allowed you to do approximately 120 puts. Don't forget that if all stocks tanked you have 480,000 at risk. (margin allowed this)
2. NO you can not use the money in a money mkt type account. The maintenance is set aside to cover what they (the brokerage) feels is enough to cover the situation...maybe. But is set aside and unavailable to you.
3. If in a spread, no margin call as your margin is figured already for a worst case scenario. But with a plain naked put, yes your maintenance does fluctuate some. It can go up or down. The brokerage will figure it each night and in the morning you will be able to tell if you are in a margin call situation. If so you will get an email saying such and such. You can fulfil that call in several ways.
1. close the position
2.close part of the position
3. lets say it is the last Friday of the option period and you get the email. you can let that day run and the position will close itself by expiring worthless (maybe)
some other points, 20% is just a place to start looking for a position. It is not a perfect number. I nearly always use more unless time is running out on the position.
Hope that helps
ps; all mine expired.. what a ride for GOOG.. Never bet very close on an earnings report!!!
Options are like playing with a gun. Keep em pointed down range, make sure they are empty and keep the safety on... Pointing the gun at yourself or others and pulling the trigger because you THINK is unloaded is foolhardy. Options are like that. Use caution and safety and be careful. Do not bet on what you think should happen or what you hope will happen. That's the difference between making a living and going broke.
Thank you
Oh my aching portfolio.... I had GOOG spread that I had to buy but worse, I had 20 apr 575 Calls. Wiped out.
Suggestions. Might these once valuable calls be my inroad to a call spread or butterfly. I'd like to sell some meaty Calls to recoup. Who's platform helps fix a bad option position?? I've read about them.
At least my wife still loves me. The dog too..
Wow,
Rick
Wheel Of Fortune!
All's well that ends well:
TSLA $25 puts - expired
TTWO $14 puts - expired
TTWO $15 puts - expired
BGU $82 covered calls - shares will get called, wish it finished below $82, so I could write calls again, writing calls on BGU is like collecting rent, the premiums are insane.
EBAY $32 covered calls - expired, will repeat.
UYG $48 May puts - still open, $20+ cushion.
My all positions expired!
NDX 2125/2150/2400/2425 IC -expired
RUT 770/790/885/905 IC -expired
AAPL 310/315 put - expired
@Kenny - Congrats!
All,
Next week.
Looking at the LULU 75/70 weekly its going (right now) for .10 bid and .17 mid. I figure i may be able to get .12 out of it.
That's a 19.6% cushion for a week!! And A 2% ROI. Plus the third standard deviation is 81.35 (0% probability). Plus.....no earnings!!!
I'm temped to go up one and get the higher premium but I'll stick to Jerry's (and some of my own) rules.
Looks good to me. What do you guys think??
Bald Harley,
I think we have all made that mistake a time or two... Might I suggest a strangle or straddle next time on an earnings play.
My April was good. Here were my monthly plays 30-45 day out of expriation.
APA 100/105/140/145
BGU 60/65/99/104
MA 215/220/280/285
PCP 115/120/155/160
QLD 69/74/106/111
Made a good amount on these two weekly plays as well...
AAPL 305/310/345/350
TNA 76/78/88/90
All expired..
Chris
Dr3, you might check to make sure the LULU you are looking at is a weekly. I don't show them having weeklys yet?
I'm happy to see all the good reports from the past week/month.
Caution is the work...There are a lot of things going on the the world--mid-east a mess, gasoline up up and away, budget battles in congress etc.. Use caution..
Jerry
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