Conservative Options Trades

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

  1. CMX:
    http://finance.yahoo.com/news/officemax-omx-zacks-rank-buy-060013353.html

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

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

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

    Looking for a trade for May expiration:

    Bull Put Spread: Sell the $10 put and buy the $5 put
    Bull Call Spread: Buy the $5 call and sell the $10 call
    Reversal: Buy the $10 call and sell the $10 put


    .......................Bull Put Spread................Bull Call Spread............Reversal
    Required..............380...................................400..........................990
    price.....................P/L..................................P/L...........................P/L.
    5.00....................(380)...............................(400)........................(482)
    7.00....................(178)...............................(198)........................(286)
    9.00.....................25.....................................5...........................(90)12.00..................120..................................100..........................213
    15.00..................120..................................100..........................513

    (Assumes a cash account........copied from post on another site)
     
    #411     Jan 14, 2013
  2. GIS:

    http://finance.yahoo.com/news/general-mills-raises-outlook-stronger-131822250.html

    http://news.investors.com/business/...it-jumps-raises-outlook.htm?ven=yahoocp,yahoo

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

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

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

    Trade:
    With GIS at 40.94
    Jul 35/30 bull put spread for $20
    Yield = 20/480 = 4.17% in 186 days or 8.2% annualized
    Prob = 96%
    Expectation = .96(20) - .01(480) - .03(240) = 19.2 - 4.8 - 7.2 = 7.2

    This is an interim trade. I have a number of spreads which are expiring this week and I need to replace them to maintain income from my portfolio. A 1 year 30/25 GIS spread is among those. GIS has run up during the year and I am taking a short term spread in hopes the market pulls back over the next six months so that I can get a better yield and position for the rest of the year.

    (copied from post on another site)
     
    #412     Jan 14, 2013
  3. deonrock

    deonrock

    This is interesting information.....
     
    #413     Jan 14, 2013
  4. GME:

    http://finance.yahoo.com/news/soft-holiday-sales-gamestop-203853982.html

    http://seekingalpha.com/article/1106871-cramer-s-mad-money-game-over-for-gamestop-1-10-13

    http://finance.yahoo.com/q/bc?s=GME+Basic+Chart

    Trade:
    With GME at 23.01
    Buy the Jul 23 put and sell the Jul 20 put for a net debit of $146

    Price...................P/L
    25.....................(146)
    23.....................(146)
    22......................(47)
    21.......................54
    20......................154
    19......................154

    :)
     
    #414     Jan 15, 2013
  5. again looking to replace a Jan expiration:

    MRK: 35/30 bull put spread

    Expiration.........Premium..............Days..........Annualized Yield..........Probability...........Prob*Yield
    April....................1.00..................94....................8.0%.....................99%................0.079
    July....................20.00................185....................8.2%.....................96%................0.079
    Jan '14................61.00................367...................13.8%.....................89%...............0.123
    Jan '15...............124.00................731...................16.5%....................81%................0.136

    Jan '14 looks good to me


    (copied from another board)
     
    #415     Jan 16, 2013
  6. GE:

    http://finance.yahoo.com/news/general-electric-marginally-beats-153312595.html

    http://finance.yahoo.com/news/ge-earnings-rise-emerging-market-115643073.html

    http://www.nytimes.com/2013/01/19/b...ergy-equipment.html?partner=yahoofinance&_r=0

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

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

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

    Trade:
    One year trade to replace expiring spreads but not a roll-over.
    Sacrificing high yield for high probability... and recognizing GE is at a high point... if GE pulls back I'll add to my position at a more favorable technical point.

    With GE at 22.04
    Trade 1
    Jan '14 15/10 bull put spread for a net credit of $20
    Yield = 20/480 = 4.2% in 364 days or 4.2% annualized
    Prob = 98%
    Expectation = .98(20) - .01(480) - .01(240) = 19.6 - 4.8 - 2.4 = 12.4

    Trade 2
    Jan '14 27/30 bear call spread for a net credit of $12
    Yield = 12/288 = 4.2% in 364 days or 4.2% annualized
    Prob = 91%
    Expectation = .91(12) - .02(288) - .07(144) = 10.9 - 5.8 - 10.08 = -5

    (copied from another board)
     
    #416     Jan 19, 2013
  7. lol another loser gambler looking for confirmation. smalltime, can't even afford a website.
     
    #417     Jan 19, 2013
  8. sle

    sle

    Please contribute something of substance or go away. Trolls and idiots are not welcome here. Thank you for your kind consideration. :mad:
     
    #418     Jan 19, 2013
  9. HON:

    Back in Dec with HON in the low 60's HON announced a predicted attenuated 2013. I initiated a 70/72.5 bear call spread on the hypothesis that the stock would peak out below 70.

    The stock did indeed drop a few points but has since advanced to the point where the 70 marker is threatened:

    http://finance.yahoo.com/q/bc?t=1m&s=HON&l=off&z=l&q=b&c=&ql=1

    I still think HON will peak at 70 (or pretty close) but, with GE perking along (and not being a gambler) I have put in an order to drop my spread at a net loss of about $50. I obviously misjudged HON.
     
    #419     Jan 20, 2013
  10. KKD:

    http://www.cnbc.com/id/100391632?__source=yahoo|headline|quote|text|&par=yahoo

    http://www.bloomberg.com/news/2013-...ce-of-international-expansion.html?cmpid=yhoo

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

    http://finance.yahoo.com/q/bc?s=KKD&t=my&l=on&z=l&q=l&c=

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

    Trade:
    With KKD at 11.94:
    Long 8.00 call for a net debit of $440
    Bull Call Spread: Buy Aug 8.00 call and sell Aug 10.00 call for a net debit of $290
    Short 9.00 put for a net credit of $35
    Bull Put Spread:Sell Aug 9.00 put and buy Aug 5.00 put for a net credit of $25
    ..............................................................P/L...............................................
    Price........Long Call..........Bull Call Spread.....................Short Put.............Bull Put Spread
    4...............(440)....................(290)................................(465).......................(375)
    5...............(440)....................(290)................................(365).......................(375)
    6...............(440)....................(290)................................(265).......................(275)
    7...............(440)....................(290)................................(165).......................(175)
    8...............(440)....................(290).................................(65)..........................(75)
    9...............(340)....................(190)..................................35.............................25
    10.............(240).....................(90)...................................35.............................25
    11.............(140).....................10.....................................35.............................25
    12..............(40).....................110....................................35.............................25
    13.............. 60......................110....................................35..............................25
    14.............160......................110.....................................35.............................25
    15.............260......................110.....................................35.............................25
     
    #420     Jan 21, 2013