Conservative Options Trades

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

  1. ARO:

    http://www.thestreet.com/story/1222...is-rallying-today.html?puc=yahoo&cm_ven=YAHOO

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

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

    With ARO at 8.97 and allowing three months for the truth to be known:

    Trade 1:
    Apr 9/12 bull call spread for a net debit of $91

    Trade 2:
    Apr 9/5 bull put spread for a net credit of $96

    Trade 3:
    Apr 8 long call

    .................................P/L........................................
    Price........Trade 1.............Trade 2...........Trade 3

    6.00...........(91).................(200)................(170)
    7.00...........(91).................(103)................(170)
    8.00...........(91)....................(5).................(170)
    9.00...........(91).....................96..................(70)
    9.91.............0.00...................96..................20
    10.00...........7.60...................96..................30
    11.00.........108.00..................96.................130
    12.00.........209.00..................96.................230
    13.00.........209.00..................96.................330
     
    #591     Jan 9, 2014
  2. NWN:
    Income oriented utility

    http://www.fool.com/investing/gener...-aristocrats-that-look-ripe-for-the-pick.aspx

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

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

    http://finance.yahoo.com/q/bc?s=NWN&t=my&l=off&z=l&q=l&c=^GSPC

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

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

    Trade:
    with NWN at 42.10

    Sell June 40 put for $100.
    Yield = 100/3900 = 2.56% in 161 days or 5.8% annualized.
    (NWN pays a 4.4% dividend)
    Prob NWN > 40 = 67%

    The intent is to be put NWN, collect the dividend and sell calls. If not put we will sell puts again.
     
    #592     Jan 10, 2014
  3. TGT:

    http://finance.yahoo.com/news/massive-target-breach-could-lasting-215453304.html

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

    Trade:
    with TGT at 62.62
    Jul 70/72.5 bear call spread for a credit of $27
    Yield = 27/223 = 12.1% in 189 days or 23.4% annualized
    Prob = 83.5%
    Expectation = .835(27) - .1(223) - .065(111) = 22.5 - 22.3 - 7.15 = -7


    Price.....................Profit / Loss............%
    55.00 .....................27.00 ...............12.10%
    60.00 .....................27.00 ...............12.10%
    65.00 .....................27.00 ...............12.10%
    70.00 .....................27.00 ...............12.10%
    70.27 .......................0.00 ................0.00%
    72.50 .....................(223.00) .........-89.20%
    75.00 .....................(223.00) .........-89.20%
    80.00 .....................(223.00) .........-89.20%
    85.00 .....................(223.00) .........-89.20%
     
    #593     Jan 10, 2014
  4. CORN:

    http://finance.yahoo.com/news/corn-etf-surges-surprise-harvest-230102950.html

    http://www.zacks.com/stock/news/78132/Buy-American-with-these-Three-Commodity-ETFs

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

    Trade:

    With CORN at 31.16

    May 31/32 bull call spread for a net debit of $45


    Price................Profit / Loss.............. %
    26.00 .................(45.00) ............-100.00%
    29.00 .................(45.00) ............-100.00%
    31.00 .................(45.00) ............-100.00%
    31.45 ....................0.00 ..................0.00%
    32.00 ...................55.00 ...............122.22%
    33.00 ...................55.00 ...............122.22%
    34.00 ...................55.00 ...............122.22%
     
    #594     Jan 12, 2014
  5. RYN:

    http://finance.yahoo.com/news/bear-day-rayonier-ryn-060025566.html

    http://www.marketwatch.com/story/uk-stocks-in-the-red-inflation-falls-to-boe-target-2014-01-14

    http://www.fool.com/investing/general/2014/01/06/rayonier-goes-timberrrrrr.aspx

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

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

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

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

    Trade:

    With RYN at 41.53

    Feb 40/35 bear put spread for a net debit of $60


    Price.............Profit / Loss............ROI %
    26.25.............. 440.00 .............733.33%
    31.18 ..............440.00 .............733.33%
    35.00 ..............440.00 .............733.33%
    36.36 ..............304.10............. 506.83%
    39.40 ..................0.00 ................0.00%
    40.00 ...............(60.00) ..........-100.00%
    41.54 ...............(60.00) ..........-100.00%
    46.73 ...............(60.00) ..........-100.00%
    51.91 ...............(60.00) ..........-100.00%

    BTW:
    America is no more:
    http://abcnews.go.com/US/wireStory/bourbon-american-foreign-ties-21523151
    http://en.wikipedia.org/wiki/Old_Overholt
    http://theoldswhiskeys.com/
     
    #595     Jan 14, 2014
  6. CELG:

    http://finance.yahoo.com/news/celgene-provides-rosy-long-term-160005934.html

    http://finance.yahoo.com/news/celgene-raises-sales-eps-forecasts-173426271.html

    http://finance.yahoo.com/news/celgene-cuts-4q-2013-adj-192450371.html

    http://www.celgene.com/

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

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

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

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

    Trade:

    With CELG at 166.03

    Jan '15 100/95 bull put spread for a net credit of $50
    Yield = 50/450 = 11.1% in 367 days or 11% annualized
    Prob = 91%
    Expectation = .91(50) - .07(450) - .02(225) = 45.5 - 31.5 - 5.0 = 9.0


    Price......................Profit / Loss................ROM %
    90.00 .....................(450.00) ..................-90.00%
    95.00 .....................(450.00) ..................-90.00%
    97.41 .....................(209.40) ..................-41.88%
    99.50 ..........................0.00 ......................0.00%
    100.00 .......................50.00 ....................11.10%
    124.94 .......................50.00 ....................11.10%
    152.47 .......................50.00 ....................11.10%
    180.00 .......................50.00 ....................11.10%
    207.54 .......................50.00 ....................11.10%
     
    #596     Jan 14, 2014
  7. AA:

    http://www.cnbc.com/id/101334401?__...hoo&doc=101334401%7cWhat+the+F-150+tells+us+a

    http://www.cnbc.com/id/101327719

    http://www.thestreet.com/story/12237892/1/why-alcoa-aa-is-gaining-today.html?puc=yahoo&cm_ven=YAHOO

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

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

    With AA at 10.32:

    Trade 1:
    Jan '15 10/12 Bull call spread for a net debit of $69

    Trade 2
    Jan '15 10/5 Bull Put Spread for a net credit of $102

    ...............Trade 1....................................Trade 2.................
    Price........Profit / Loss............%............Profit / Loss............%
    7.50 ...........(69.00) ...........-100%...........(144)............(36)%
    9.00 ...........(69.00) ...........-100% ..........0.00.................0%
    10.00 .........(69.00) ...........-100% ...........102................26%
    10.45 .........(23.50) .............-34%............102................26%
    10.69 ...........0.00 ..................0%............102................26%
    12.00 ........131.00 ...............190%...........102................26%
    13.50 ........131.00 ...............190%...........102................26%
    15.00 ........131.00 ...............190%...........102................26%
     
    #597     Jan 14, 2014
  8. ACN:

    http://wallstcheatsheet.com/stocks/...ands-of-a-new-federal-contractor.html/?ref=YF

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

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

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

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

    Trade:

    With ACN at 81.95

    Aug 70/65 bull put spread for a net credit of $55
    Yield = 55/445 = 12.4% in 213 days or 21% annualized
    Prob = 88%
    Expectation = .88(55) - .04(445) - .08(222) = 48.4 - 17.8 - 17.7 = 12.9


    Price..............Profit / Loss................ROM %
    48.75............. (445.00) ................-89.00%
    59.05............. (445.00) ................-89.00%
    65.00 .............(445.00) ................-89.00%
    69.45 .................0.00 .....................0.00%
    69.90 ................45.00 ....................9.00%
    70.00 ................55.00 ...................12.40%
    80.75 ................55.00 ...................12.40%
    91.59 ................55.00 ...................12.40%
    100.00 ..............55.00 ...................12.40%
     
    #598     Jan 14, 2014
  9. SSI:

    http://finance.yahoo.com/news/bear-day-stage-stores-ssi-060023720.html

    http://finance.yahoo.com/news/stage-stores-reports-sales-nine-110000060.html

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

    Trade:
    With SSI at 19.62

    APR 22.50/17.50 bear put spread for a net debit of $330


    Price................Profit / Loss...........ROI %
    13.00................ 170.00.............. 51.52%
    16.00................ 170.00.............. 51.52%
    17.50................ 170.00.............. 51.52%
    19.00.................. 16.60............... 5.03%
    19.20.................... 0.00............... 0.00%
    20.00..................(85.00).............-25.00%
    22.50............... (330.00)........... -100.00%
    25.09............... (330.00)........... -100.00%
    28.13............... (330.00)........... -100.00%
     
    #599     Jan 15, 2014
  10. INTC:

    http://www.marketwatch.com/story/intel-profit-rises-on-modest-sales-growth-2014-01-16

    http://www.marketwatch.com/story/amex-intel-to-report-earnings-after-hours-2014-01-16?siteid=yhoof2

    http://www.zacks.com/stock/news/119936/intel-beats-revs-misses-eps-guides-flat

    http://finance.yahoo.com/news/intel-fourth-quarter-revenue-exceeds-210904920.html

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

    Trade:
    With INTC at 26.54
    Jul 30/33 bear call spread for a net credit of $26
    Yield = 26/274 = 9.5% in 183 days or 18.9% annualized


    Price..................Profit / Loss.............ROI %
    20.00.................. 26.00 ...................9.50%
    25.00.................. 26.00 ...................9.50%
    28.00.................. 26.00 ...................9.50%
    30.00.................. 26.00 ...................9.50%
    30.26.................... 0.00 ...................0.00%
    32.63................. (236.60) .............-78.87%
    33.00................. (274.00) ..............-91.33%
    36.94................. (274.00) ..............-91.33%
    41.25................. (274.00) ..............-91.33%
     
    #600     Jan 16, 2014