Conservative Options Trades

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

  1. DDR:
    [​IMG]


    http://online.barrons.com/article/S...59610629340766.html?mod=yahoobarrons&ru=yahoo

    http://www.thestreet.com/story/1252...oration-ddr-today.html?puc=yahoo&cm_ven=YAHOO

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

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

    Trade:
    With DDR at 16.32
    Jul 15/17.50 bull call spread for a net debit of $155
    Yield = 95/155 = 61.3% in 111 days or 200% annualized


    Price.....................Profit / Loss........................ROI %
    11.00..................... (155.00)....................... -100.00%
    13.00..................... (155.00)........................ -100.00%
    15.00..................... (155.00)........................ -100.00%
    15.44..................... (111.40)......................... -71.87%
    16.55............................. 0.00............................... 0.00%
    17.50........................... 95.00........................... 61.29%
    18.00........................... 95.00........................... 61.29%
    20.00........................... 95.00........................... 61.29%
    22.50........................... 95.00........................... 61.29%
     
    #701     Mar 29, 2014
  2. USO:

    The consensus on oil pricing seems to be higher in the short term if US and Europe place restrictions on Russian oil, but lower in the longer term given increased supply and competition with natural gas.

    Here I hypothesize sideways to down by 2016.

    http://online.barrons.com/article/S...579459323209921860.html#articleTabs_article=1

    http://247wallst.com/energy-business/2014/03/29/the-argument-for-75-oil-should-be-95-oil/

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

    Trade:
    with USO at 36.62
    Jan '16 45/49 bear call spread for a net credit of $69
    Yield = 69/331 = 20.8% in 655 days or 11.6% annualized
    Prob = 82%
    Expectation = .82(69) - .097(331) - .083(166) = 56.58 - 32.11 - 13.78 = 10.7


    Price...........................Profit / Loss..............................ROI %
    30.00.............................. 69.00................................... 20.80%
    35.00.............................. 69.00................................... 20.80%
    40.00.............................. 69.00................................... 20.80%
    45.00.............................. 69.00................................... 20.80%
    45.69................................. 0.00...................................... 0.00%
    47.60.......................... (190.90)............................... -47.73%
    49.00.......................... (331.00)............................... -82.75%
    55.00.......................... (331.00)............................... -82.75%
    60.00.......................... (331.00)............................... -82.75%
     
    #702     Mar 30, 2014
  3. Ukraine and Crimea:

    In listening to the ongoing reporting about this issue an important factor seems to be ignored: Economics

    Economics is an essential and, I believe, a determinant factor.

    Let me just spew out some facts that are never reported:

    1. Russia and the Ukraine are very poor compared to the West. As estimated by the IMF per capita GDP in the US is $52,839. The same figure in Russia is $14,973. A Factor of 3.5 to 1.

    In the Ukraine it is only $3,862

    http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita

    The future for Russia does not look very much better. The Russian economy has already shrunk for two consecutive quarters. A large part of Russia's economy is based on oil production and exportation, and the world is moving towards using less rather than more oil. As a response, Russia has already started to shift emphasis on selling its oil to China as opposed to Europe and the US.

    China is very much less concerned than is the West about global warming and CO2 production.

    Russia HAS to sell it's oil to somebody or it can't survive.

    http://www.bbc.com/news/world-europe-26469461

    http://www.bloomberg.com/news/2014-03-25/russian-oil-seen-heading-east-not-west-in-crimea-spat.html

    http://www.npr.org/blogs/parallels/2014/02/21/280684831/why-ukraine-is-such-a-big-deal-for-russia

    http://uk.reuters.com/article/2014/03/24/uk-russia-economy-idUKBREA2N13S20140324

    The Ukraine's interest in increasing its NATO participation is a clear threat to Russia both politically and economically.

    World War II was an Economic necessity for Germany. The treaty of Versailles made it impossible for Germany to survive economically and the resultant ascendance of the Nazi party in Germany was a logical result of this short sightedness.

    As Putin implied in one of his 'speeches' recently, you cannot push a county to the brink of destruction and not expect it to respond.

    $7 oil??? We'll have to put Russia on food stamps.
     
    #703     Mar 30, 2014
  4. AMGN:

    http://finance.yahoo.com/news/bull-day-amgen-amgn-050019336.html

    http://www.bloomberg.com/news/2014-...rol-within-weeks-of-treatment.html?cmpid=yhoo

    http://blogs.barrons.com/stockstowa...organ-stanley-says/?mod=yahoobarrons&ru=yahoo

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

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

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

    Trade:

    With AMGN at 120.55
    Jan '15 82.5/77.5 bull put spread for a net credit of $30
    Yield = 30/470 = 6.4% in 291 days or 8.0% annualized
    Prob = 93%
    Expectation = .93(30) - .04(470) - .03(235) = 27.9 - 18.8 - 7.05 = 2.1


    Price............................Profit / Loss.........................ROI %
    70.00........................... (470.00).......................... -94.00%
    75.00........................... (470.00).......................... -94.00%
    77.50........................... (470.00).......................... -94.00%
    82.20................................... 0.00................................. 0.00%
    82.50................................. 30.00................................ 6.40%
    90.00................................. 30.00................................ 6.40%
    100.00.............................. 30.00................................ 6.40%
    120.55...............................30.00................................ 6.40%
    135.00.............................. 30.00................................ 6.40%
    150.00.............................. 30.00................................ 6.40%
     
    #704     Mar 31, 2014
  5. MDT:

    http://finance.yahoo.com/news/study-backs-nonsurgical-way-fix-130932257.html

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

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

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

    Trade:
    With MDT at 60.41
    Jan '15 47/42 bull put spread for a net credit of $30
    Yield = 30/470 = 6.38% in 291 days or 8.0% annualized
    Prob = 95%
    Expectation = .95(30) - .01(470) - .04(235) = 28.5 - 4.7 - 9.4 = 14.4


    Price.......................Profit / Loss.....................ROI %
    35.00....................... (470.00)...................... -94.00%
    40.00....................... (470.00)...................... -94.00%
    42.00....................... (470.00)...................... -94.00%
    46.70............................... 0.00............................ 0.00%
    47.00............................ 30.00............................ 6.38%
    50.00............................ 30.00............................ 6.38%
    55.00............................ 30.00............................ 6.38%
    60.00............................. 30.00........................... 6.38%
    70.00............................. 30.00........................... 6.38%
     
    #705     Mar 31, 2014
  6. EXAS:

    http://finance.yahoo.com/news/exact-sciences-announces-fda-advisory-195200439.html

    http://www.cbsnews.com/news/fda-panel-backs-non-invasive-colon-cancer-screening-alternative/

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

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

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

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

    Trade:
    with EXAS at 14.17
    Jan '15 10/8 bull put spread for a net credit of $30
    Yield = 30/170 = 17.6% in 290 days or 22.2% annualized

    Price.......................Profit / Loss...................ROI %
    6.00............................ (170.00).................. -85.00%
    8.00............................ (170.00).................. -85.00%
    8.25............................ (145.20).................. -72.60%
    9.70.................................... 0.00........................ 0.00%
    10.00............................... 30.00..................... 17.60%
    11.00............................... 30.00...................... 17.60%
    12.50............................... 30.00...................... 17.60%
    14.17............................... 30.00...................... 17.60%
    18.00............................... 30.00...................... 17.60%

    EXAS is a 'development phase' biotech (i.e. money losing) waiting for someone to buy it. The current owners have held onto the company in the hopes that they will get Cologuard approved which would greatly increase the value of the company.

    This test is a tremendous advance because it uses a DNA signature to test for cancer.

    http://newsnetwork.mayoclinic.org/d...ol-shows-unprecedented-detection-rates-2ac87f
     
    #706     Apr 1, 2014
  7. The mid on that spread is $0.55.
     
    #707     Apr 1, 2014
  8. Thanks Atticus.

    :)
     
    #708     Apr 1, 2014
  9. #709     Apr 1, 2014
  10. WCG:

    http://finance.yahoo.com/news/wellcare-strong-sell-202024624.html

    http://www.theflyonthewall.com/perm...e-climbs-after-analyst-says-takeover-probable

    http://www.fool.com/investing/general/2014/03/16/the-best-stocks-for-obamacares-medicaid-surge.aspx

    http://www.theflyonthewall.com/perm...-to-Outperform-from-Market-Perform-at-Leerink

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

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

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

    Trade:
    with WCG at 64.39
    Sept 45/40 bull put spread for a net credit of $35
    Yield = 35/465 = 7.5% in 172 days or 16% annualized
    Prob = 93%
    Expectation = .93(35) - .02(465) - .05(233) = 32.55 -9.3 - 11.7 = 11.55


    Price.................................Profit / Loss......................ROI %
    30.00.................................. (465.00)......................... -93.00%
    35.00.................................. (465.00)......................... -93.00%
    40.00.................................. (465.00)......................... -93.00%
    44.65.......................................... 0.00................................ 0.00%
    45.00....................................... 35.00................................ 7.50%
    49.89....................................... 35.00................................ 7.50%
    60.00....................................... 35.00................................ 7.50%
    70.00....................................... 35.00................................ 7.50%
    80.00....................................... 35.00................................ 7.50%
     
    #710     Apr 1, 2014