Do you monitor your leverage in terms of outright stock position? Ie if all positions were put to you? If so, what levels are you comfortable maintaining? 100% of account, 200%?
Sold puts on $35 IACI for March. Credit $0.90 Annualized % return......... 18 - 19% otm safety cushion 9% BE price $34.10 Companies fundamentals are somewhat mixed, and that is a concern. And it may also be a little over valued. However, overall it is financially healthy, and pays a good dividend, if I end up owning it at $35. Good companies with some current issues, is what creates investing opportunities, and annualized % returns of 18 - 19%. Earnings released Feb 6. The 2 year chart shows tech support in the $38 - $38.50 area, where it's currently trading,..... and again in the $34 - 35 range. Hence my strike of $35..... with a BE of $34.10 http://finance.yahoo.com/q/bc?s=IACI&t=2y&l=on&z=l&q=b&c=
I live in Vegas. I have no problem finding "exciting" ways to spend my profits.... and I don't even gamble, as I find the process boring.
Its better when you consider the alternative, which is sitting infront of your computer from 9am - 4pm everyday. Put_master, how much time do you spend daily in front of the computer researching trades and etc? Are you on from 9am to 4 or do you look for your trades after the market has closed to enter them the next opening?
I search for my option trades between the time I spend searching for porn. Or is it the other way around??? Lets just say there's a reason I chose to specialize in naked butts.... I mean puts.
Sold puts on $30 BJRI for March. Credit $0.60 Annualized % return.....16% http://finance.yahoo.com/q/bc?s=BJRI&t=2y&l=on&z=l&q=b&c= Company is reasonably valued for it's sector and is financially healthy. Company has no debt. Sold the put with the stock trading $32.15. Technically, there is support in the $32 - 32.25 area. Hence my trade, with a BE price of $29.40 and an annualized % return of 16%.
Sold puts on $30 BJRI for April Credit $1.05 Annualized % return.....16% Thus I now have $30 puts on BJRI for March and April. With each earning a potential 16% annualized return. If anyone is planing to eat out for lunch/dinner today..... I may have a suggestion for you.
Sold puts on $70 VMW for April. Credit $2.05 Annualized % return.....14% http://finance.yahoo.com/q/bc?s=VMW&t=2y&l=on&z=l&q=b&c= The 2 year chart above shows tech support in the $74 - $76 area. Thus it can certainly fall more, if a bad market takes it down. But I decided to lock in the $2.05 credit, 14% return, 9% otm safety cushion, and BE price of $67.95..... as I did not want to risk missing the trade with the weekend coming up soon, and the stock volatility calming down. VMW presents a mixed picture. Via some metrics the stock is still over valued at my $70 price, but reasonably valued via other metrics. But given that it is also financially healthy, I decided to take a chance on a BE price of $67.95. If I'm wrong, the stock can drop into the low 60's and still generate a reasonable income for me, via covered calls.