Conservative Options Trades

Discussion in 'Journals' started by danshirley, Aug 21, 2011.

  1. IBM:
    http://finance.yahoo.com/news/warren-buffett-raised-bets-visa-212500915.html
    http://www.forbes.com/sites/patrick...s-disappoint-troubled-giant/?partner=yahootix
    http://finance.yahoo.com/news/u-department-energy-selects-ibm-150400071.html
    http://www.forbes.com/sites/panosmourdoukoutas/2014/11/13/will-ibm-rise-again/?partner=yahootix
    http://stockcharts.com/h-sc/ui?s=ibm

    Trade:
    With IBM at 164.16
    April 140/135 bull put spread for a net credit of $37
    Yield = 37/463 = 8% in 151 days or 19.3% annualized
    Prob = 95%
    Expectation = .95(37) - .02(463) - .03(232) = 35.2 - 9.3 - 7.0 =18.9

    Price..........Profit / Loss..........ROM %
    100.00.........(463.00).............-92.60%
    120.00.........(463.00).............-92.60%
    135.00.........(463.00).............-92.60%
    139.63..............0.00.................0.00%
    140.00............37.00.................8.00%
    150.00............37.00.................8.00%
    164.16............37.00.................8.00%
    175.00............37.00.................8.00%
     
    Last edited: Nov 16, 2014
    #881     Nov 16, 2014
  2. CREE:

    http://www.thestreet.com/story/1295...mponents-business.html?puc=yahoo&cm_ven=YAHOO

    http://finance.yahoo.com/q/ks?s=CREE+Key+Statistics

    http://www.msn.com/en-us/money/stockdetails/fi-126.1.CREE.NAS?symbol=CREE&form=PRFISB

    http://www.forbes.com/sites/peterde...t-another-efficient-led-light-bulb-from-cree/

    http://stockcharts.com/h-sc/ui?s=CREE

    http://finance.yahoo.com/echarts?s=CREE Basic Chart#{"range":"1y","scale":"linear"}

    Trade:
    With CREE at 35.57
    April 25/20 bull put spread for a net credit of $25
    Yield = 25/475 = 5.3% in 150 days or 12.6% annualized
    Prob = 92%

    Price..........Profit / Loss..........ROM %
    15.00..........(475.00)................-95.00%
    20.00..........(475.00)................-95.00%
    20.65..........(409.60)................-81.92%
    24.75...............0.00....................0.00%
    25.00..............25.00...................5.30%
    30.00..............25.00...................5.30%
    35.00..............25.00...................5.30%
    40.00..............25.00...................5.30%
    45.00..............25.00...................5.30%
     
    Last edited: Nov 17, 2014
    #882     Nov 17, 2014
  3. TSLA:

    http://finance.yahoo.com/news/tesla-tsla-shares-skid-morgan-192002266.html

    http://www.forbes.com/sites/uciliawang/2013/08/08/a-manufacturing-lesson-from-tesla-motors/

    http://online.wsj.com/articles/tesla-confirms-nevada-to-get-battery-factory-1409871734

    http://finance.yahoo.com/q/ks?s=TSLA Key Statistics

    http://www.msn.com/en-us/money/stockdetails/fi-126.1.TSLA.NAS?symbol=TSLA&form=PRFISB

    http://stockcharts.com/h-sc/ui?s=tsla

    Trade:
    With TSLA at 248.71
    Sell Jun 320 call and buy Jun 325 call for a net credit of $41
    Yield = 41/459 = 8.9% in 210 days or 15.5% annualized
    Prob = 86%
    Expectation = .86(41) - .13(320) - .01(160) = 35.26 - 41.6 - 1.6 = -8

    Price...............Profit / Loss..........ROM %
    186.53................41.00.................8.90%
    228.70................41.00.................8.90%
    273.09................41.00.................8.90%
    317.48................41.00.................8.90%
    320.00................41.00.................8.90%
    320.41..................0.00.................0.00%
    325.00..............(459.00)............-91.80%
    361.86..............(459.00)............-91.80%
    406.25..............(459.00)............-91.80%

    An alternate trade:
    Jun 150/145 bull put spread for a net credit of $65
    Yield = 65/435 = 14.9% in 210 days or 25.97% annualized
    Prob = 96%
    Expectation = .96(65) - .03(435) - .01(218) = 62.4 - 13.05 - 2.18 = 47.2

    Price..................Profit / Loss.................ROM %
    108.75.................(435.00).....................-87.00%
    145.00.................(435.00).....................-87.00%
    147.54.................(180.60).....................-36.12%
    149.35......................0.00.............................0.00%
    150.00....................65.00........................14.90%
    188.38....................65.00........................14.90%
    229.22....................65.00........................14.90%
    270.05....................65.00........................14.90%
    310.89....................65.00........................14.90%
     
    Last edited: Nov 21, 2014
    #883     Nov 21, 2014
  4. not sure if youd answer this, but how much % have you made to date overall? must be plenty.
     
    #884     Nov 22, 2014
  5. If I use as a denominator the amount of money I have deployed I am up 16.6%. YTD, If I use as a denominator the entire account I am up half that...because I am only half deployed.

    I have been waiting for things to be more settled before upping my deployment like: what the Fed will actually do and how the market will respond, especially bond prices, interest rates and inflation; I've been waiting for the S&P to pull back so I can get a test of support levels; waiting for earnings and projected earnings especially to settle etc. etc.

    WELL I should have known better than to expect a settled market to trade in as there is no such thing. Still, right now I'm waiting for a pull back in the S&P to set support levels.

    http://stockcharts.com/h-sc/ui?s=SPY

    Lots-a-luck to me.
     
    #885     Nov 22, 2014
    Gimpyron likes this.
  6. USO:
    http://finance.yahoo.com/news/chart-164634248.html

    http://www.businessinsider.com/why-oil-price-keeps-dropping-2014-11

    http://finance.yahoo.com/news/cancel-thanksgiving-most-important-opec-145500131.html

    http://finance.yahoo.com/echarts?s=USO Basic Chart#{"range":"5y","scale":"linear"}

    Trade:
    With USO at 28.74
    Jul 35/40 bear call spread for a net credit of $38
    Yield = 38/462 = 8.2% in 234 days or 12.8% annualized
    Prob = 81%
    Expectation = .81(38) - .08(462) - .11(231) = 30.78 - 36.96 - 25.41 = -31.5

    Price..............Profit / Loss...................ROM %
    20.00...................38.00..........................8.20%
    25.00...................38.00..........................8.20%
    30.00...................38.00..........................8.20%
    35.00...................38.00..........................8.20%
    35.38.....................0.00.........................0.00%
    38.51.................(312.70)....................-62.54%
    40.00.................(462.00)....................-92.40%
    45.00.................(462.00)....................-92.40%
    50.00.................(462.00)....................-92.40%
     
    #886     Nov 24, 2014
  7. MMM:
    http://blogs.barrons.com/stockstowa...ow-the-stock-outperforms/?mod=BOL_hp_blog_stw

    http://finance.yahoo.com/q/ks?s=MMM Key Statistics

    http://www.msn.com/en-us/money/stockdetails/fi-126.1.MMM.NYS?symbol=MMM&form=PRFISB

    http://finance.yahoo.com/news/3m-hits-52-week-high-190138533.html

    http://finance.yahoo.com/echarts?s=MMM Basic Chart#{"range":"5y","scale":"linear","comparisons":{"^GSPC":{"color":"#cc0000","weight":1}}}

    http://stockcharts.com/h-sc/ui?s=mmm

    Trade:
    With MMM at 158.06
    APR 170/175 bear call spread for a net credit of $60
    Yield = 60/440 = 13.6% in 141 days or 35.3% annualized
    Prob = 82%
    Expectation = .82(60) - .09(440) - .09(220) = 49.2 - 39.6 - 19.8 = -10

    Price...........Profit / Loss.......ROM %
    120.00.............60.00..............13.60%
    140.00.............60.00..............13.60%
    160.00.............60.00..............13.60%
    170.00.............60.00..............13.60%
    170.60...............0.00...............0.00%
    175.00...........(440.00)..........-88.00%
    180.00...........(440.00)..........-88.00%
    190.00...........(440.00)..........-88.00%
    200.00...........(440.00)..........-88.00%

    Alternate trade:
    APR 145/140 bull put spread for a net credit of $55
    Yield = 55/445 = 12.36% or 32% annualized
    Prob = 87%
    Expectation = .87(55) - .06(445) - .07(223) = 47.85 - 26.7 - 15.6 = 5.6

    Price..............Profit / Loss........ROM %
    105.00..............(445.00)............-89.00%
    122.77..............(445.00)............-89.00%
    140.00..............(445.00)............-89.00%
    141.47..............(298.10)............-59.62%
    144.45...................0.00................0.00%
    145.00.................55.00...............12.36%
    160.17.................55.00...............12.36%
    178.87.................55.00...............12.36%
    197.58.................55.00...............12.36%
     
    Last edited: Nov 26, 2014
    #887     Nov 26, 2014
  8. AMZN:

    http://finance.yahoo.com/news/amazons-robot-army-ready-ship-050244613.html

    http://stockcharts.com/h-sc/ui?s=amzn

    http://www.msn.com/en-us/money/stockdetails/fi-126.1.AMZN.NAS?symbol=AMZN&form=PRFISB

    http://finance.yahoo.com/q/ks?s=AMZN Key Statistics

    Trade:
    With AMZN at 338.64
    Feb 285/280 bull put spread for a net credit of $40
    Yield = 40/460 = 8.7% in 80 days or 39.7% annualized
    Prob = 93%
    Expectation = .93(40) - .05(460) - .02(230) = 37.2 - 23 - 5 = 9.2

    Price..........Profit / Loss.........ROM %
    210.00...........(460.00)..........-92.00%
    250.00...........(460.00)..........-92.00%
    280.00...........(460.00)..........-92.00%
    284.60................0.00..............0.00%
    285.00..............40.00..............8.00%
    295.00..............40.00..............8.00%
    338.64..............40.00..............8.00%
     
    #888     Dec 1, 2014
  9. STAA:
    http://finance.yahoo.com/news/bear-day-staar-staa-060014979.html

    http://finance.yahoo.com/q/ks?s=STAA Key Statistics

    http://finance.yahoo.com/q/is?s=STAA

    http://stockcharts.com/h-sc/ui?s=staa

    TRADE:
    with STAA at 9.03
    June 10/12.5 bear call spread for a net credit of $80
    Yield = 80/170 = 47% in 197 days or 87% annualized
    Prob = 68%
    Expectation = .68(80) - .20(170) - .12(85) = 54.4 - 34 - 10.2 = 10.3

    Price............Profit / Loss.........ROM %
    6.50.................80.00.................47.00%
    8.50.................80.00.................47.00%
    10.00...............80.00.................47.00%
    10.26...............54.00.................21.60%
    10.80.................0.00..................0.00%
    12.05............(124.80)...............-49.92%
    12.50............(170.00)...............-68.00%
    13.50............(170.00)...............-68.00%
    15.50............(170.00)...............-68.00%
     
    #889     Dec 3, 2014
  10. MKC:
    http://finance.yahoo.com/news/mccormick-mkc-upgraded-strong-buy-204002317.html

    http://finance.yahoo.com/q/ks?s=MKC Key Statistics

    http://www.msn.com/en-us/money/stockdetails/fi-126.1.MKC.NYS?symbol=MKC&form=PRFISB

    http://stockcharts.com/h-sc/ui?s=mkc
    Trade:
    with MKC at 73.89
    June 65/60 bull put spread for a net credit of $65
    Yield = 65/435 = 14.9% in 197 days or 27.7% annualized
    Prob = 87%
    Expectation = .87(65) - .04(435) - .09(218) = 56.6 - 17.4 - 19.6 = 19.6

    Price...........Profit / Loss.............ROM %
    45.00............(435.00).................-87.00%
    54.09............(435.00).................-87.00%
    60.00............(435.00).................-87.00%
    63.66............(69.20)...................-13.84%
    64.35...............0.00.......................0.00%
    65.00.............65.00......................14.90%
    73.23.............65.00......................14.90%
    82.79.............65.00......................14.90%
    92.36.............65.00......................14.90%
     
    Last edited: Dec 3, 2014
    #890     Dec 3, 2014