My OPTION TRADES..... part 2

Discussion in 'Options' started by Put_Master, Aug 20, 2012.

  1. Sold puts on $10 ATVI for Nov.
    Credit $0.15
    Annualized % return..... 12%

    Thus I've now sold puts on $11 ATVI for Oct, and $10 ATVI for Nov.
    Given that the 1st trade has the potential to earn 22% annualized, and this 2nd one at a lower strike, earning 12%,.... they average out to 17%.

    Love the tech support in the $10 - $10.5 area... per the 5 year chart below:
    http://finance.yahoo.com/q/bc?s=ATVI&t=5y&l=on&z=l&q=b&c=
     
    #481     Oct 1, 2012
  2. Sold puts on $$12.50 DY for Dec.
    Credit $0.55
    Annualized % return..... 20%

    Reasonable tech support around $12, per the 5 year chart below:
    http://finance.yahoo.com/q/bc?s=DY&t=5y&l=on&z=l&q=b&c=

    Fundamentals are a bit mixed. For example, some margins are a little weaker than I like, but overall, a financially healthy company whose debt interest coverage is still good.
    Looks like a reasonable trade for a break even price of $11.95

    I would have sold puts for Nov vs Dec., but I could not get the credit I desired. Thus, I went for Dec.
    Also, earnings are due out about the same time as the Nov contract expires.

    I'll be at the gaming convention all day, so I won't be posting anymore today.
     
    #482     Oct 4, 2012
  3. Today I closed this Jan $22 CNX trade, after just one month.
    Original credit $1.25.
    Closed the trade for $0.38
    Thus keeping 64% of the credit.

    I've been on a bit of leverage the past week, with my last few trades, so it's good to reduce that responsibility.
    With my Oct trades expiring in 2 weeks, I now have the opportunity to either consider another Jan trade that pays more credit than I just returned,... or to look for an earlier Nov or Dec trade.
    Or perhaps just relax for a week or two.
    Also, I just changed the % return from 13% to about 37%
     
    #483     Oct 8, 2012
  4. Sold puts on $24 VECO for Nov.
    Credit $0.40
    Annualized % return..........15%
    OTM safety cushion 17%.

    There is reasonable tech support at 24 per the 1 year chart below.
    http://finance.yahoo.com/q/bc?s=VECO&t=1y&l=on&z=l&q=b&c=

    My only concern about the company is, that it is heavily shorted.
    There are a few issues with it's fundamentals, but I don't see anything that would warrant such a large % of shorts.
    But I will find out soon enough, as they report earnings October 22.
    With a BE price of $23.60, I'm happy to own the company and sell covered calls, if I should get a nasty surprise.
     
    #484     Oct 8, 2012
  5. #485     Oct 9, 2012
  6. Assuming I shared all my October trades, which expire next friday,... below is an update of the trades, for those following or trading them.
    They are all currently above their strikes, but a few are very close to them, and could potentially be put to me.
    If so, I'll be happy to sell covered calls on them.
    Below is a list the stocks and their strike:

    ARO.... 10
    ATVI.... 11
    CNX.... 24
    IGT..... 11
    LRCX.... 31
    TRLG.... 17
    WMS.... 15
     
    #486     Oct 12, 2012
  7. ACTG reports earnings tomorrow.
    I'm hoping for an opportunity, via increased volatility, to initiate a $17.50 November naked put on the stock tomorrow.
     
    #487     Oct 17, 2012
  8. Earnings are now out. They missed.
    I'm hoping for a drop in stock price Friday, and that it creates the investing opportunity I was speaking about above.
     
    #488     Oct 18, 2012
  9. It dropped fifty. The 17.50 put will be flat to down.
     
    #489     Oct 18, 2012
  10. Closed this Nov trade earlier today for a loss.
    Normally i would buy the stock and sell a covered call.
    But when the facts change.... I change my mind and my strategy.

    As for my Oct trades which expire today, they are all currently trading above their strikes, but my $11 ATVI is very close to it's strike, so I'll have to wait and see.
     
    #490     Oct 19, 2012