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.
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.
Sunday, February 9, 2014
Hi all. Thanks to all that have kept the blog alive and well over this last year. I have had many many questions regarding where or what I'm up to and why avoiding posting on the blog. My only excuse is pretty lame but I really have been busy the last year. This past week I spent in the Caribbean spending some hard earned money while chartering a nice Lagoon catamaran.. I'm now home and want to add to the blog
I have branched out into doing some investing for others. This has burned up lots of time and energy but paid the bills. So again I am going to try and do a posting more than weekly.
I have changed a lot of my strategy mainly for easy trades but I still do a lot of Iron condors. A condor I really like for the coming week is trading at a ridiculous profit of over 10% per week if opened now. I will wait for a few days and look again but if nothing happens soon I will jump in....
Look at Face Book FB trading at 64.35
Buy the weekly 55.5 for around ..04 - \ Sell the weekly 58 for ..09
make around ..05 today
Sell the 70 for ..16 and buy the 72.5 for .10
make around ..06
If this works you would make around .16 and a cost of 2.50 each for a profit of over 4% a week.
I will wait until Tuesday to do this trade so the profit will drop some but I will still try for 5% for a three/four day trade. Waiting gives me the chance to re-evaluate and adjust the strikes used or even if I want to do the trade.
On many of the accounts I manage the owners want a little safer way of trading so I have gone to the simple covered calls.
FB has reported earning and should continue upwards?
Again I like FB for most of these. I also do some EBAY. When doing covered calls I use the next strike available. With FB I am buying lots of them and selling the
weekly 65 calls.
The goal with these is to get called! I use a lot of margin so this ups the profit but adds some element of risk but my accounts are ok with some risk if care and thought go into them.
So there you have a few of the trades I am doing these days.
I hope to hear from you traders regarding what you think and how you are trading this weeks available trades.
Jerry
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4 comments:
Jerry - Great to have you back. I've been having success with your strategy just trading SPX put spreads each week. I can usually enter my position on Wednesday and still get a comfortable cushion amount. Though it was a close call two weeks ago with the big market drop!
I am usually too nervous to add the call spread side to my trades, because I can never get as much cushion on the cal side as on the put side.
Are you still trading SPX spreads or do you now exclusively only trade on individual stocks?
Wow, welcome back Jerry! Just happened back upon this blog, and saw your recent post. Wish I ad been in the Carrib on a cat. Stuck in NM. Been doing SPX ICs entering Thurs for next week, then exiting Mon/Tues by buying back. Used to let 'e run to expire worthless but find more peace of mind just letting the theta decay erode til I can buy back profitably. Look forward to getting this blog and chat running again.
WHOA, Almost gave this blog up for dead. Great to have you back Jer.
I hit the blog every once in awhile, but gave up posting. Hope we can get the gang back. Did not have a great year. Did credit spreads on some stocks and got burned real bad. Need to stick to indeces. Calls still killing me.
Did a NFLX 422/427 CS with nflx @ 405 and 2 days to go. Some broker came out with an upgrade and nflx popped 25. Did the same with TSLA
205/210 @ 188 and a story came out about tsla used cars selling higher than new ones and tsla popped to 203.
Been playing UNG call spreads when nat gas was popping to 5+. Still mostly doing index put spreads and I made myself a promise to stay away from calls and equities.
Great to see you back Jer & have ops. Tax season is back, so I'm stuck in my office with 15 inches of new snow we got Wed/Thurs. Hurry up Spring, but not to fast if I'm going to be stuck in my office till 4/15.
Nice Blog!thanks for post and sharing with us.
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