Conservative Options Trades

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

  1. i'm a fan of Coke zero :)
     
    #232     Jul 28, 2012

  2. ....cherry dr pepper, with a little captn morgan black....
     
    #234     Jul 28, 2012
  3. you drunk.. slow down! haa
     
    #235     Jul 28, 2012
  4. HUM:
    http://www.bloomberg.com/news/2012-...st-as-medicare-costs-increase.html?cmpid=yhoo

    http://finance.yahoo.com/news/humana-cuts-outlook-following-weak-224859543.html

    http://news.investors.com/article/6...tate-earnings-this-week.htm?ven=yahoocp,yahoo

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

    http://investing.money.msn.com/investments/financial-statements?symbol=hum

    http://finance.yahoo.com/q/bc?s=HUM&t=2y&l=on&z=l&q=l&c=

    Bearish Trade:
    Jan 85/87.5 bear call spread for $37
    Yield = 37/213= 17.4% in 171 days or 37.1% annualized
    Prob = 82%
    Expectation = .82(37) - .15(213) - .03(106) = 30.3 - 31.9 - 3.2 = -4.8

    Bullish Trade:
    Jan 55/50 bull put spread for $55
    Yield = 55/445 = 12.4% in 171 days or 26% annualized
    Prob = 83%
    Expectation = .83(55) - .08(445) - .09(222) = 45.6 - 35.6 - 20 = -10

    Both at once??


    [​IMG]

    http://en.wikipedia.org/wiki/Humana
     
    #237     Jul 31, 2012
  5. CWT:

    http://www.fool.com/investing/etf/2012/06/15/make-money-in-promising-water-stocks.aspx

    http://finance.yahoo.com/news/california-water-group-announces-second-204100557.html

    http://www.fool.com/investing/gener...a-water-service-group-increases-sales-bu.aspx

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

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

    http://investing.money.msn.com/investments/financial-statements?symbol=CWT

    http://finance.yahoo.com/q/bc?t=5y&s=CWT&l=on&z=l&q=l&c=&ql=1&c=^GSPC

    http://finance.yahoo.com/q/bc?s=CWT&t=5y&l=on&z=l&q=l&c=

    CWT pays a 3.4% dividend.

    Trade:

    Sell the Dec 17.50 put for .60... actually I sold it yesterday before it bounced.

    (EEEKKS I just sold a naked put)

    Yield = 60/1690 = 3.55% in 140 days or 9.26% annualized

    My intent with this naked short put is to be put at 17.50. This will allow me to make the 3.4% dividend and sell calls for another 6% at least for a continued net ann yield in the area of 9.4%.

    BTW I have tried repeatedly in the past to be put with CWT but it just doesn't happen. It's OK because the yield on the naked put is about equal to the dividend + CC.

    We'll see if this time is the charm.

    (Sorry but I don't have a headquarters picture for CWT)
     
    #238     Aug 3, 2012
  6. Looks like danshirley has been chased back to his comfort zone in his private thread. It's too hot in the other option forums for him so he seeks safety in this one.

    :)
     
    #239     Aug 3, 2012
    .sigma likes this.