OHI is a healthcare REIT which will go ex-dividend on Oct 29th http://www.dividendinvestor.com/?symbol=ohi&submit=GO http://ichart.finance.yahoo.com/z?s=OHI&t=2y&q=c&l=off&z=m&a=v&p=s http://finance.yahoo.com/q/pr?s=OHI http://finance.yahoo.com/q/is?s=OHI http://finance.yahoo.com/q/ks?s=OHI For Nov Expiration..............P/L..................For June Expiration ..........15 CC........15 Short Put............15CC..........15 Short Put 13......(161).............(165)....................(16)................(35) 14......(61)................(65)......................90...................65 15.......39..................35.......................184.................165 16.......39..................35.......................184.................165 --------------------------------------------------------------------------- req:..1491...............1465....................1406................1335 Yield:. 2.6%..............2.4%...................13%...............12.3% Ann:..31%................29%....................19%...............18.5%
Nice journal you have. Just curious about why you take a longer term position like over 6 mths for the dollar, and do you intend to let the position expire?
"Just curious about why you take a longer term position like over 6 mths for the dollar, and do you intend to let the position expire" The june expiration had the largest annualized return at the time I put on the spread. Annualized returns today for the same spread are: Nov:.....0% Dec:....15% Mar:....42% Jun:....49% In addition the longer time frame allows time for the effect I am looking for to take place. All too often, when playing such things with options, you are right but your options expire before the market agrees with you. I do expect to allow this to expire.
Here's another looonng term trade: PBCT is a very stable bank founded in 1842: http://finance.yahoo.com/q/pr?s=PBCT http://finance.yahoo.com/q/bc?t=2y&s=PBCT&l=off&z=m&q=c&c=PNC&c=^DJI http://finance.yahoo.com/q/is?s=PBCT http://finance.yahoo.com/q/bs?s=PBCT http://www.reuters.com/article/marketsNews/idCNBNG38390020091015?rpc=44 They will go exdividend on Oct 28th. trade: Buy PBCT at 16.61 and sell the May 17.50 call for .70 . Dividends will total an additional .45 for a net of 1.15. Yield = 115/ 1591 = 7.25% in 209 DAYS or 12.6% annualized. The 17.50 short put will yield 106/1555 = 6.8% or 11.8% annualized. A higher yielding trade: Sell the may 15 put and buy the may 12.50 put for a net of .40 Yield = 40/210 = 19% in 209 days or 33% annualized.
GILD is a very powerful and innovative pharm company http://finance.yahoo.com/q/pr?s=GILD http://finance.yahoo.com/q/is?s=GILD http://finance.yahoo.com/q/bs?s=GILD Which is having a minor pullback that at least some analysts deem unwarranted: http://finance.yahoo.com/news/Gilead-shares-fall-despite-apf-671539328.html?x=0&.v=1 GILD shares have been very steady in the past 2 years with strong support at 40: http://finance.yahoo.com/q/bc?s=GILD&t=2y&l=off&z=m&q=c&c= We will take a short term position for short term gain: TRADE: Sell the Dec 40 put and buy the Dec 35 put for a net of $50.00. Yield = 50/450 = 11% in 53 days or 75% annualized. This position will expire before next quarterly reports.
GILD: A longer term trade http://video.forbes.com/fvn/intelligent-technology/gilead-living-vs-dying http://finance.yahoo.com/q/bc?s=GILD&t=2y&l=off&z=m&q=c&c= Trade: With GILD at 43.12 sell the May 2010 45 call and cover with the June SSF ..............P/L........%Gain........Ann% 35........(502).......(62%).......(108%) 40...........0.............0.............0 43.12.....310.........39%.........67% 45..........500.........62%........108% 50..........500.........62%........108% ------------------------------------------------------ req: 800 days: 207
Note: APOL, a stock on our recession proof list, is down 12 points today on fairly vague information regarding a sec probe: http://www.reuters.com/article/marketsNews/idCNBNG33612720091028?rpc=44 Fortunately we have no current positions in APOL, and we will drop APOL from our list at this point.
GIS, a member of our recession proof list, is a very stable stock which has largely resisted the turmoil of the past two years: http://finance.yahoo.com/q/bc?s=GIS&t=2y&l=off&z=m&q=c&c=^DJI The stability of the stock reflects the company's stable earnings : http://finance.yahoo.com/q/is?s=GIS At it's last earnings report it raised its 2010 projections: http://finance.yahoo.com/news/General-Mills-1Q-Results-at-a-apf-3568260771.html?x=0&.v=2 Yesterday Cramer recommended GIS as a "safety stock" for diversification: http://www.thestreet.com/_yahoo/sto...ate-1.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA "People don't cut back on food," he said, "not even when they're dieting!" GIS has a beta of just .3 trade: I think GIS's stability justifies an Iron Condor http://www.theoptionsguide.com/iron-condor.aspx sell the Jan 2011 45 put and 80 call and hedge with the 50 put and 85 call for a net of $45. Yield = 45/455= 9.9% in 450 days or 7.9% annualized.
What's the point of selling an iron condor with 450 days to expiration!? Time decay is virtually zero for the next 400 days. Mind explaining your logic behind this trade?