Hi all, Well this May is some proof that the old saying in the stock market that says ‘Go away in May,’ sure provided some insight. With world events and even those closer to home in a confused stage, I advise anyone that is trading to be very careful and avoid holding positions over weekend (especially long weekends like this memorial weekend.) There are just too many things going on. Will Greece pull out of the euro? Will Iran get the bomb. Will U.S. bonds get downgraded again etc etc. There are plenty of positions that will open on Tuesday or Wednesday that offer cushion and little time left in their life. An example is the SPX (sometimes with different brokerages called $SPX.X) It is trading around 1317 and you can buy the 1225 and sell the 1230 put for around 1% in a 4 day trade. You can also add to the same trade and turn it into a condor by selling the 1365 and buying 1370 call. This also makes around .05 so it now is a 2% trade. The put side has 87 points of cushion and the call side has around 50 points of cushion. There are other examples using a stock like CMG with the 330/335 put. I certainly would not use a stock that doesn’t offer weekly options. I would not be holding a position over several weeks as there are just too many factors pulling the market in different directions. You want to expose yourself to little time and keep lots of cushion. There is no reason to open dangerous positions just because you ‘think’ the stock has fallen as far as it can, etc. The point is to not get close to any current stock price. The market is just too volatile. I want to emphasize that you need to be very careful in this market. There is plenty of money to be made using common sense and careful positions. Cushion and Caution…

Hi Guys & dolls, I have been busy with a lot of projects. Nothing exciting just routine. M&M I might look at OXY I used them a year or so ago. I like the stats you sent showing low volatility. What’s with GOOG today? I haven't looked into the whys yet... AAPL held its ground sort of today. It was up around 12 at one time. I worry about Nicky. Hope it wasn't too bad. Options have such leverage both up and down. Care must be taken and caution used in a time when Europe is in such flux and unrest. (go away in May if you want to trade another day) For newer traders, I must again say caution and cushion. Don't start using a stock and think it is the only one out there. evaluate each trade for the what if.. type move. My advice for bullet proof trades, open on a Wednesday and look at weekly’s with lots of cushion. If plain old naked puts are you style, pick up crumbs, don't reach for the whole loaf of bread. If spreads are you way then pick stocks to use on Wednesday and still lots of cushion. Look at Iron condors as they are just a spread on each side of the current stock price. Good luck Jerry

HI all, amrit... You are correct we all get tunnel vision regarding the stocks we get to know on a very personal level. But if we go overboard at times forgive us. We do like and look forward to everyone’s comments. I had an Iron condor that just expired with aapl. I see that there are several other stocks and index that offer the same cushion and will be 1 to 1.5% weekly. I received a lowly 350 and used 19000 in maint but that is 1.8% ROI.. Jeeze and nearly worry proof. Maybe I’m doing it the hard way with the long calls and weekly sold calls? We have all evolved and learned from each other. Keep up the good work. I am also posting this as a new post as the thread is getting long. Jerry

Hi all, With AAPL hitting bottom and finally moving up those of us using them will finally breath a little easier. Also GOOG took a leap forward today. Still in/on my mind is the old saying of ‘Go away in May’. Meaning that the market is usually not bullish and hard to make money. I have many of the aapl Jan calls and I am letting them lose some value but selling calls weekly and putting cash in the bank while waiting. A decent play might be the SPX. It is trading around 1370 and some great puts or spreads even Iron condors available with lots of cushion on the weeklys. If you still like aapl trading at 570, as I do, you can do spreads with 40 points of cushion or even naked puts and make 1% a week or better. Folks this is free money as good as gold. Also Goog, trading around 610. The Iron condor using the 565/570 puts and the 645/650 call will make 2% pretty safe. There is lots of money out there so pick your spot and cash in. Cushion – cushion.. the answer to good sleep and good profits

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..

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.

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.