Conservative Options Trades

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

  1. THOR:

    http://finance.yahoo.com/news/st-jude-medical-adds-more-113526461.html

    http://finance.yahoo.com/news/thoratec-beats-q2-earnings-revenues-150503962.html

    http://finance.yahoo.com/news/st-jude-acquire-thoratec-3-205108164.html

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

    Trade:
    With THOR at 62.93
    Jan 62.50/55 bull put spread for a net credit of $72
    Yield = 72/678 = 10.6% in 158 days or 24.5% annualized

    Price.................. Profit / Loss.......... ROM %
    40.00.................... (678.00)............ -89.40%
    45.00.................... (678.00)............ -89.40%
    55.00.................... (678.00)............ -89.40%
    55.99.................... (579.20)............ -77.23%
    61.78......................... 0.00................ 0.00%
    62.50........................ 72.00...............10.60%
    65.00........................ 72.00...............10.60%
    70.00........................ 72.00...............10.60%
    75.00........................ 72.00...............10.60%
     
    Last edited: Aug 10, 2015
    #1031     Aug 10, 2015
  2. PCP:

    http://finance.yahoo.com/news/buffetts-berkshire-buy-precision-castparts-110745862.html

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

    http://www.bloomberg.com/news/artic...-buy-precision-castparts-in-37-2-billion-deal

    http://finance.yahoo.com/q/pr?s=PCP+Profile

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

    Trade:

    Mar 230/220 bull put spread for a net credit of $65
    Yield = 65/935 = 6.9% in 180 days or 14.1% annualized

    Price................. Profit / Loss........... ROM %
    165.00................... (935.00)............... -93.10%
    175.00................... (935.00)............... -93.10%
    200.00................... (935.00)............... -93.10%
    220.00................... (935.00)............... -93.10%
    229.35........................ 0.00................. 0.00%
    230.00...................... 65.00................. 6.90%
    240.00...................... 65.00................. 6.90%
    250.00...................... 65.00................. 6.90%
    260.00...................... 65.00................. 6.90%
     
    Last edited: Aug 10, 2015
    #1032     Aug 10, 2015
  3. BND:

    http://finance.yahoo.com/echarts?s=BND+Interactive#{"range":"5y","allowChartStacking":true}

    Trade:
    With BND at 81.44
    Mar 80/77 bull put spread for a net credit of $65
    Yield = 65/235 = 27.7% in 232 days or 43.5% annualized


    Price.................. Profit / Loss........... ROM %
    60.00..................... (235.00).............. -72.33%
    70.00..................... (235.00).............. -72.33%
    75.00..................... (235.00).............. -72.33%
    77.00..................... (235.00).............. -72.33%
    79.50.......................... 0.00................. 0.00%
    80.00........................ 65.00................ 27.70%
    85.00........................ 65.00................ 27.70%
    90.00........................ 65.00................ 27.70%
    100.00...................... 65.00................ 27.70%
     
    Last edited: Aug 10, 2015
    #1033     Aug 10, 2015
  4. ZBRA:
    (a trade for shorter attention spans)
    http://finance.yahoo.com/news/zebra-technologies-crumbles-weak-q2-144002201.html

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

    Trade:
    With ZBRA at 85.73
    Aug 85/80 bear put spread for a net debit of $130
    Yield = 370/130 = 284% in 10 days or a gazillion percent annualized

    Price................... Profit / Loss........... ROI %
    60.00..................... 370.00................ 284.62%
    69.31..................... 370.00................ 284.62%
    79.12..................... 370.00................ 284.62%
    80.00..................... 370.00................ 284.62%
    83.70......................... 0.00................... 0.00%
    85.00.................... (130.00)............. -100.00%
    88.92.................... (130.00)............. -100.00%
    98.72.................... (130.00)............. -100.00%
    108.53.................. (130.00)............. -100.00%
     
    #1034     Aug 12, 2015
  5. ZBRA has been consolidating under very low volume after the big drop. It'll be interesting to see how it plays out.
     
    #1035     Aug 15, 2015
  6. Yep...closed at 89 so I'm out $130.

    :)

    Much more aggravating today is Delta Airlines. I have an early morning flight out of MYR and had to get seats assigned. It cost me $50 on top of my airfare to have a place to sit down. Did they think I was going to hang on a subway strap to Atlanta?

    They rig their prices to make them come up lowest on Expedia and then add seat fares as well as luggage fares so it ends up Delta costs the most instead of the least like they pretend. Grrrrr.

    http://finance.yahoo.com/news/complaints-airlines-soared-2015-u-162944474.html
     
    Last edited: Aug 15, 2015
    #1036     Aug 15, 2015
  7. Who knows. Maybe ZBRA will fall out of bed today or tomorrow...
     
    #1037     Aug 20, 2015
  8. Well ZBRA went down enough for me to close out with a profit. As for the rest of my portfolio this remarkable decline is not giving me much of a problem...yet.

    http://finance.yahoo.com/echarts?s=SPY+Interactive#{"range":"5y","allowChartStacking":true}

    I have enough of a bearish and bullish mix, my bond spreads are unaffected and my bullish spreads were placed enough OTM that they are also not threatened so far. I really don't know what has triggered this blow-up but am sitting tight so far.
     
    Last edited: Aug 22, 2015
    #1038     Aug 22, 2015
  9. I had written off the trade earlier in the week but was able to close out the ZBRA spread early afternoon for a small profit. 70% ROR isn't so bad.
    I try to avoid managing positions on expiration day but you gotta be on your toes in the markets.
     
    #1039     Aug 22, 2015
  10. JAZZ:

    http://finance.yahoo.com/news/bear-day-jazz-pharma-jazz-130101280.html

    http://www.thestreet.com/story/13263159/1/roof-leaker-to-watch-jazz-pharmaceuticals-jazz.html

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

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

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

    Trade:
    with JAZZ at 165.57
    Jan 175/180 bear call spread for a net credit of $110
    Yield = 110/390 = 28.2% in 143 days or 72% annualized
    Prob = 63%
    Expectation = .63(110) - .34(390) - .03(195) = 69.3 - 132.6 - 5.8 = -69

    Price............ Profit / Loss........... ROM %
    145.00.............. 110.00.................. 28.20%
    155.00.............. 110.00.................. 28.20%
    165.00.............. 110.00.................. 28.20%
    175.00.............. 110.00.................. 28.20%
    176.10................. 0.00.................... 0.00%
    180.00............. (390.00)............... -71.80%
    190.00............. (390.00)............... -71.80%
    200.00............. (390.00)............... -71.80%
    225.00............. (390.00)............... -71.80%
     
    #1040     Aug 25, 2015