Conservative Options Trades

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

  1. Ukraine and Crimea :

    Tomorrow's open may well be down because of Putin's sabre rattling over the Ukraine. I believe this will be short lived so I don't plan to do anything. Since the market is so overbought it could trigger a decline with the Ukraine as an excuse... just to let a little air out of the bubble.

    I find Putin's statement that he needs to exert control over events in the Ukraine in order to protect Russians and 'Russian speakers' living there a bit worrisome... he could say the same about New York city which seems to have more Russians than the Crimea.

    :)

    http://en.wikipedia.org/wiki/Ukraine

    http://en.wikipedia.org/wiki/Crimea

    http://stream.wsj.com/story/deadly-clashes-in-ukraine/SS-2-457850/

    It's interesting to review the current situation and compare it to Obama's recent threat to bomb Syria in order to protect US interests there... and especially to review Putin's op-ed in the NY Times in that instance:

    http://www.washingtonpost.com/blogs...-putins-new-york-times-op-ed-lets-revisit-it/

    http://www.nytimes.com/2013/09/12/opinion/putin-plea-for-caution-from-russia-on-syria.html?hp&_r=2&

    I was in Kiev in the sixties and found it a singularly unpleasant place... mostly because it was full of people who looked like Putin:

    [​IMG]
     
    #661     Mar 2, 2014
  2. Update:
    http://stockcharts.com/h-sc/ui?s=acat
    http://finance.yahoo.com/news/zacks-rank-5-additions-tuesday-130954122.html
    New Trade:
    with ACAT at 47.45
    Sept 45/40 bear put spread for a net debit of $150
    Potential Yield = 350/150 = 230% in 199 days



    Price................................Profit / Loss..........................ROI %
    30.00................................. 350.00............................... 233.33%
    35.00................................. 350.00............................... 233.33%
    40.00................................. 350.00............................... 233.33%
    41.41.................................. 209.10............................... 139.40%
    43.50.......................................... 0.00................................... 0.00%
    45.00.................................. (150.00).......................... -100.00%
    50.00.................................. (150.00).......................... -100.00%
    55.00.................................. (150.00).......................... -100.00%
    60.00.................................. (150.00).......................... -100.00%
     
    #662     Mar 4, 2014
  3. GTLS:

    http://finance.yahoo.com/news/bear-day-chart-industries-gtls-060028281.html

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

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

    Trade:
    with GTLS at 85.56
    Sept 110/115 bear call spread for a net credit of $45
    Yield = 45/455 = 9.89% in 198 days or 18.2% annualized
    Prob = 86.8%
    Expectation = .868(45) - .097(455) - .035(228) = 39.1 - 44.2 - 8.0 = -13.1


    Price......................Profit / Loss..........................ROI %
    85.00............................ 45.00................................. 9.89%
    90.00............................ 45.00................................. 9.89%
    95.00............................ 45.00................................. 9.89%
    110.00......................... 45.00................................. 9.89%
    110.45............................ 0.00.................................. 0.00%
    111.60..................... (114.60)........................... -22.92%
    115.00..................... (455.00)........................... -91.00%
    125.00..................... (455.00)........................... -91.00%
    130.00..................... (455.00)........................... -91.00%
     
    #663     Mar 5, 2014
  4. Ukraine:

    Here is an excellent review of events over the past few days from the London Telegraph

    http://www.telegraph.co.uk/news/worldnews/europe/ukraine/10669670/Ukraine-Russia-crisis-live.html

    If you get fish and chips on the street in London they put it in a rolled up Telegraph.

    Here are some photos of Kiev in the '60s. A horrible place then and now. I think it has the worlds longest winter outside of the Artic.

    [​IMG][​IMG]
    [​IMG][​IMG]

    http://www.marketwatch.com/story/uk...oy-your-portfolio-2014-03-05?dist=lbeforebell
     
    #664     Mar 6, 2014
  5. RSH: Dinosaur Trade

    http://www.marketwatch.com/story/did-radioshack-run-out-of-things-to-sell-2014-03-06?dist=lcountdown

    Goldman lowered RadioShack's price target to $1 from $2.25 based on a higher probability of default over the next three years by the CDS market, which is now about 80%. Shares are Sell rated.

    http://stockcharts.com/h-sc/ui

    Trade:

    Oct 3/5 bear call spread for a net credit of $10
    Yield = 10/190 = 5.3% in 225 days or 8.5% annualized
    Prob = 82%
    Expectation = .82(10) - .06(190) - .12(95) = 8.2 - 11.4 - 11.4 = -14.6

    Price.......................Profit / Loss................ROI %
    1.51............................ 10.00......................... 5.30%
    2.42............................ 10.00......................... 5.30%
    3.00............................ 10.00......................... 5.30%
    3.10............................... 0.00......................... 0.00%
    3.38............................ (27.80)................. -13.90%
    4.34.......................... (123.50)................. -61.75%
    5.00.......................... (190.00)................. -95.00%
    5.29........................... (190.00)............... -95.00%
    6.25........................... (190.00)............... -95.00%
     
    #665     Mar 6, 2014
  6. DFE:

    http://finance.yahoo.com/q/bc?t=5y&s=DFE&l=off&z=l&q=l&c=&ql=1

    http://finance.yahoo.com/q/bc?t=5y&s=DFE&l=off&z=l&q=l&c=SPY&ql=1

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

    http://finance.yahoo.com/q/hl?s=DFE+Holdings

    http://www.marketwatch.com/story/7-signs-were-near-a-market-top-and-what-to-do-now-2014-03-07

    http://www.expatica.com/fr/news/fre...er-close-watch-over-high-deficits_286844.html

    http://www.businessweek.com/news/20...et-deficit-to-widen-in-2015-without-more-cuts

    Trade:
    With DFE at 63.22
    Aug 63/65 bear call spread for a net credit of $100
    Yield = 100/100 = 100% in 160 days or 228% annualized
    Prob = 51%

    Price..............................Profit / Loss................ROI %
    50.00............................... 100.00....................... 50.00%
    55.00............................... 100.00....................... 50.00%
    60.00............................... 100.00....................... 50.00%
    63.00............................... 100.00....................... 50.00%
    64.00...................................... 0.00......................... 0.00%
    65.00............................... (100.00).................. -50.00%
    70.00............................... (100.00).................. -50.00%
    75.00............................... (100.00).................. -50.00%
    80.00............................... (100.00).................. -50.00%

    A hundred dollars on red.

    :)

    [​IMG]
     
    #666     Mar 8, 2014
  7. UNG:

    http://www.nytimes.com/2014/03/06/w...a-for-natural-gas.html?hpw&rref=business&_r=0

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

    Trade:
    With UNG at 25.55
    Jan '15 18/15 bull put spread for a net credit of $25
    Yield = 25/275 = 9.1% in 314 days or 10.6% annualized
    Prob = 85%

    Price........................Profit / Loss...................ROI %
    12.00......................... (275.00)...................... -91.67%
    15.00......................... (275.00)...................... -91.67%
    15.22......................... (253.00)...................... -84.33%
    17.75.................................. 0.00............................ 0.00%
    18.00............................... 25.00............................ 9.10%
    20.00............................... 25.00............................ 9.10%
    25.00............................... 25.00............................ 9.10%
    30.00.............................. 25.00............................. 9.10%
     
    #667     Mar 8, 2014
  8. WTW:

    http://finance.yahoo.com/news/bear-day-weight-watchers-wtw-050021066.html

    http://www.bloomberg.com/news/2014-...fit-forecast-trails-estimates.html?cmpid=yhoo

    http://www.thestreet.com/story/1252...till-a-heavy-sell.html?puc=yahoo&cm_ven=YAHOO

    http://www.thestreet.com/story/1236...eting-aftermarket.html?puc=yahoo&cm_ven=YAHOO

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

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

    Trade:
    With WTW at 20.46
    Jan'15 35/37.5 bear call spread for a net credit of $25
    Yield = 25/225 = 11.1% in 312 days or 13% annualized
    Prob = 93%
    Expectation = .93(25) - .05(225) - .02(113) = 23.25 - 11.25 - 2.26 = 9.7


    Price...........................Profit / Loss......................ROI%
    20.00................................. 25.00......................... 11.11%
    25,00................................. 25.00......................... 11.11%
    30.00................................. 25.00......................... 11.11%
    35.00................................. 25.00......................... 11.11%
    35.25.................................... 0.00............................ 0.00%
    37.50............................. (225.00)...................... -90.00%
    40.51............................. (225.00)...................... -90.00%
    46.88............................. (225.00)...................... -90.00%
     
    #668     Mar 10, 2014
  9. TSLA:

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

    http://blogs.marketwatch.com/thetel...s-pointing-to-netflix-tesla-bitcoin-and-more/

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

    Trade:

    Jan'15 300/305 bear call spread for a net credit of $100
    Yield = 100/400 = 25% in 312 days or 29.2% annualized
    Prob = 75%


    Price........................Profit / Loss.......................ROI %
    225.00......................... 100.00........................... 25.00%
    250.00......................... 100.00........................... 25.00%
    275.00......................... 100.00........................... 25.00%
    300.00......................... 100.00........................... 25.00%
    301.00............................... 0.00............................. 0.00%
    305.00........................ (400.00)...................... -80.00%
    320.00........................ (400.00)...................... -80.00%
    340.00........................ (400.00)...................... -80.00%
     
    #669     Mar 10, 2014
  10. NILE:

    http://finance.yahoo.com/news/bear-day-blue-nile-nile-050020381.html

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

    http://www.bluenile.com/

    http://finance.yahoo.com/news/blue-nile-announces-fourth-quarter-123000714.html

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

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

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

    Trade:
    With NILE at 36.13
    Aug 45/50 bear call spread for a net credit of $45
    Yield = 45/455 = 9.9% in 157 days or 23% annualized
    Prob = 87%
    Expectation = .87(45) - .054(455) - .076(228) = 39.2 - 24.6 - 17.3 = -2.7


    Price.........................Profit / Loss........................ROI %
    30.00............................... 45.00............................ 9.90%
    35.00............................... 45.00............................ 9.90%
    40.00............................... 45.00............................ 9.90%
    45.00............................... 45.00............................ 9.90%
    45.45.................................. 0.00............................ 0.00%
    48.20........................... (274.60)..................... -54.92%
    50.00........................... (455.00)..................... -91.00%
    55.00........................... (455.00)..................... -91.00%
    60.00........................... (455.00)...................... -91.00%

    Alternate Trade:

    Aug 30/25 bull put spread for a net credit of $72
    Yield = 72/428 = 16.8% in 157 days or 39.1% annualized
    Prob = 78%
    Expectation = .78(72) - .05(428) - .17(214) = 56.2 - 21.4 - 36.2 = -1.4


    Price.........................Profit / Loss........................ROI %
    18.00............................ (428.00)...................... -85.60%
    20.00............................ (428.00)...................... -85.60%
    25.00............................ (428.00)...................... -85.60%
    29.15............................ (12.50)........................... -2.50%
    29.28................................. 0.00............................... 0.00%
    30.00............................... 72.00............................ 16.80%
    35.00............................... 72.00............................ 16.80%
    40.00............................... 72.00............................ 16.80%
    45.00.............................. 72.00............................. 16.80%
     
    #670     Mar 11, 2014