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=
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.
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%
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.
WFC: http://seekingalpha.com/article/911771-w....it?source=yahoo http://finance.yahoo.com/q/bc?s=WFC&t=2y&l=on&z=l&q=l&c= Trade: With WFC at 35.80 Buy the Oct 36 call and sell the Oct 37 call for a net debit of $37 Price.................P/L 35....................(37) 36....................(37) 36.37.................0 37....................63 38....................63 39....................63 Res Ipsa Loquitor (posted on another board)
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
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.
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.
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.