Conservative Options Trades

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

  1. CPB:

    http://finance.yahoo.com/news/campbell-reports-lackluster-q1-results-184155088.html

    http://www.thestreet.com/story/1211...canned-on-tuesday.html?puc=yahoo&cm_ven=YAHOO

    http://finance.yahoo.com/news/kicking-campbell-hit-fresh-food-152444085.html

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

    With CPB at 39.20:

    Trade #1:

    Jan 2015 50/45 Bear Call Spread for a net credit of $45
    Yield = 45/455 = 9.9% in 424 days or 8.5% annualized

    Trade #2:

    Jan 2015 40/35 Bear Put Spread for a net debit of $310
    Yield = $190/ 310 = 61% in 424 days or 52.7% annualized

    Trade #3

    Jan 2015 35/30 bull put spread for a net credit of $120
    Yield = 120/380 = 31.6% in 424 days or 27.2% annualized

    .........................................P/L.........................................
    Price..............Trade #1..................Trade #2........Trade #3
    30.....................$45.........................$190..............($380)
    35.....................$45.........................$190..............$120
    36.90.................$45..........................$0.0..............$120
    40.....................$45.........................($310)............$120
    45.....................$45.........................($310)............$120
    45.45................$0.0.........................($310)............$120
    50....................($455)......................($310)............$120
    55....................($455)......................($310)............$120
     
    #541     Nov 20, 2013
  2. Shares opened today at 39.50. Did you travel to the past?
     
    #542     Nov 20, 2013
  3. CPB:

    Try it again:

    http://finance.yahoo.com/news/campbell-reports-lackluster-q1-results-184155088.html

    http://www.thestreet.com/story/1211...canned-on-tuesday.html?puc=yahoo&cm_ven=YAHOO

    http://finance.yahoo.com/news/kicking-campbell-hit-fresh-food-152444085.html

    http://finance.yahoo.com/q/bc?s=CPB+Basic+Chart&t=5d

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

    With CPB at 39.20 (close):

    Trade #1:

    Jan 2015 50/45 Bear Call Spread for a net credit of $45
    Yield = 45/455 = 9.9% in 424 days or 8.5% annualized

    Trade #2:

    Jan 2015 40/35 Bear Put Spread for a net debit of $255
    Yield = $245/255 = 96% in 424 days or 82.7% annualized

    Trade #3

    Jan 2015 35/30 bull put spread for a net credit of $115
    Yield = 120/380 = 31.6% in 424 days or 27.2% annualized

    .........................................P/L.........................................
    Price..............Trade #1..................Trade #2........Trade #3....Prob>
    30.....................$45.........................$245..............($385)......89%
    33.85.................$45.........................$245...............$0.0.......74%
    35.....................$45.........................$245..............$115........69%
    37.45.................$45..........................$0.0..............$115.......57%
    40.....................$45.........................($255)............$115.......54%
    45.....................$45.........................($255)............$115.......23%
    45.45................$0.0.........................($255)............$115.......22%
    50....................($455)......................($255)............$115.......11%
    55....................($455)......................($255)............$115........4%

    :)

    (optionsOracle tables were not updated...this data is from OptionsXpress)
     
    #543     Nov 20, 2013
  4. CPB and Camden NJ:

    Campbell Soup is located in Camden NJ.

    Camden, across the Delaware river from Philadelphia, is the nation's most poignant example of urban decay, having been ranked #1 in violent crime per capita.

    http://en.wikipedia.org/wiki/Camden,_New_Jersey

    https://www.google.com/search?q=cam...=X&ei=9LGMUscNzc2RB_DggPgE&sqi=2&ved=0CDkQsAQ

    A number of years ago, working in Philadelphia, I became disillusioned with corporate culture and took a job as VP of Information Systems at....Camden County College deep inside Camden NJ.

    As part of my job I had to teach several classes in data processing.

    It was an eye opening experience. The daily walk from the college building to my car was always frightening and one never stayed late.
     
    #544     Nov 20, 2013
  5. BJRI:

    http://finance.yahoo.com/news/bear-day-bjs-restaurants-bjri-055026191.html

    http://finance.yahoo.com/news/bjs-misses-earnings-rev-estimates-154002455.html

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

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

    http://finance.yahoo.com/q/bc?s=BJRI&t=1y&l=off&z=l&q=l&c=

    Trade:

    With BJRI at 28.16

    Jan '14 30/25 bear put spread for a net debit of 2.25

    Price.........................P/L
    15.00 .................... $275.00
    20.00 .....................$275.00
    25.00 .....................$275.00
    26.14 .....................$161.40
    27.75 .........................$0.00
    28.16 .......................(47.00)
    29.92 .....................($217.40)
    30.00 .....................($225.00)
    35.00 .....................($225.00)
    40.00 .....................($225.00)
     
    #545     Nov 21, 2013
  6. PTM:

    http://finance.yahoo.com/news/3-etfs-play-platinums-coming-202430720.html

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

    Trade:
    With PTM at 15.59

    May '14 14/18 bull call spread for a net debit of $180

    Price.............P/L.....................%
    10.50 ........($180.00)....... -100.00%
    12.80 ........($180..00).......-100.00%
    14.00 ........($180.00)....... -100.00%
    15.23 ..........($57.30)......... -31.83%
    15.80 ...........$0.00............... 0.00%
    17.65 ........$185.20........... 102.89%
    18.00 ........$220.00........... 122.22%
    20.00 ........$220.00........... 122.22%
    22.00 ........$220.00........... 122.22%
     
    #546     Nov 22, 2013
  7. IBM:

    http://seekingalpha.com/article/1854751-ibm-cant-get-blood-out-of-a-stone?source=yahoo

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

    http://finance.yahoo.com/q/bc?t=2y&s=IBM&l=on&z=l&q=l&c=&ql=1&c=^GSPC

    http://finance.yahoo.com/q/bc?t=2y&s=IBM&l=on&z=l&q=l&c=&ql=1

    Trade:

    With IBM at 184.13

    Jan '15 215/220 bear call spread for a net credit of $60
    Yield = 60/440 = 13.6% in 420 days or 11.8% annualized



    Price.............P/L...........%..............Prob >
    138.10....... 60.00...... 12.00% .........97%
    164.37....... 60.00...... 12.00% .........78%
    192.03....... 60.00...... 12.00% .........40%
    215.00....... 60.00...... 12.00% .........15%
    215.60........ 0.00......... 0.00% .........13%
    219.69..... (408.60).... -81.72% ........12%
    220.00..... (440.00).... -88.00% ........11%
    230.00..... (440.00).... -88.00% ..........6%
    240.00..... (440.00).... -88.00% ..........4%
     
    #547     Nov 22, 2013
  8. SHLD:

    http://finance.yahoo.com/news/sears-3q-loss-widens-sales-112240783.html

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

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

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

    Trade:
    With SHLD at 61.34
    Jan '15 75/80 bear call spread for a net credit of $110
    Yield = 110/390 = 28% in 420 days or 24.5% annualized
    Prob = 73%
    Expectation = .73(110) - .22(390) - .05(195) = 80.3 - 85.8 - 9.75 = -15

    Price..........Profit / Loss.......... %
    45.00 ...........110.00 ........28.00%
    55.00 ...........110.00 ........28.00%
    65.00 ...........110.00 ........28.00%
    75.00 ...........110.00 ........28.00%
    76.10 ..............0.00 ..........0.00%
    78.18 ...........(208.40) ....-41.68%
    80.00 ...........(390.00) ....-78.00%
    85.00 ...........(390.00) ....-78.00%
    90.00........... (390.00) ....-78.00%
     
    #548     Nov 22, 2013
  9. INTC:

    http://finance.yahoo.com/news/intel-shares-drop-2014-forecast-201743746.html

    http://www.marketwatch.com/story/in...ement-over-big-plans-2013-11-22?siteid=yhoof2

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

    http://finance.yahoo.com/q/bc?s=INTC+Basic+Chart&t=2y

    Trade:
    With INTC at 23.87

    April '14 26/28 bear call spread for a net credit of $27

    Yield = 27/173 = 15.6% in 147 days or 38.8% annualized

    Prob = 78%

    Price..........Profit / Loss............ %
    17.90 ............27.00 .............15.60%
    21.18 ............27.00 .............15.60%
    24.64 ............27.00 .............15.60%
    26.00 ............27.00 .............15.60%
    26.27 ..............0.00 ...............0.00%
    28.00 ...........(173.00) .........-86.50%
    28.09 ...........(173.00) .........-86.50%
    31.55 ...........(173.00) .........-86.50%
    35.00 ...........(173.00) .........-86.50%
     
    #549     Nov 22, 2013
  10. I am very impressed by your thread, your patience and the uniqueness of your method. If I could ask, what methods do you use to search for such spreads? How do you calculate the expected values and how do you get the probs? If you have an example that goes over the steps of the numbers it would help. For instance what is the .05(195) in: Expectation = .73(110) - .22(390) - .05(195). Thanks.
     
    #550     Nov 23, 2013