Trade of the day
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Well it seems I have quite a good thing going on. Just for fun I’ll post what I consider to be the best trade I did on a given day.
Today was selling cash secured puts, GE December 15 for .72 to open. Easy money and if GE gets to 15 I'll take it with a 14.28 basis that should also make the dividend in the 8% range.Forgot to add there is an 82% probability that this will expire worthless. We do want the stock, but if not we get paid to be wrong.
If something like that happens I would ‘roll’ it. There is plenty of chain for profit management. So no not really would just manage the position. Was 48 for 48 profitable expirations last month. My system was crash tested and all was well. Will have 70 something this month.
I see… you SOLD the puts. I misread your original post to say that you BOUGHT them. My bad.
Altria cash secured put MO Dec 17 1/2 for 1.26, Hope/planning to get the stock on this one. Don’t see asians stopping smoking anytime soon with a 16.24 the div will be above 7.5%
FYI All funds used for cash secured puts are put in TBills until expiration. If I buy back the option I just leave the cash in TBill as it’s considered cash by margin.
How about buying CHK at 22.36 and writing the Jan 09 calls at 27.50 for 2. Pocket the $200 and get called away with a 23% profit. You also will get the divi from the stock.
With Obama becoming prez, you could do this all year long while owning a nat gas company, which is a form of energy he supports.Not on My radar but I’ll check it out. I trade overwrites all the time. Not a lot of premium on the call side for the last month or so that one sounds very nice.
I can't tell these guys how proud I am to know that there are still smart guys around who are not afraid to suggest "zany options trades" to their clients.
You guys make me and my mentor LeRoy Gross proud.
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I can't tell these guys how proud I am to know that there are still smart guys around who are not afraid to suggest "zany options trades" to their clients.
You guys make me and my mentor LeRoy Gross proud.
[/quote] I thought you hated me...I have never used options before(frmr EDJ) where is a good place to start to learn how to, so I can add it to my business…
Prov,
Zany? I guess your not a fan of probabilities and getting high quality dividend paying stock at a discount.[quote=Gaddock]Prov,
Zany? I guess your not a fan of probabilities and getting high quality dividend paying stock at a discount.[/quote] Gad, I think you read his comment a little too quick. He actually thinks what you're doing is the best thing since sliced bread. I do, however, think "zany" was an odd choice for an adjective in his sentence, which might have been what threw you off.Beyond that these "zany" trades are appropriate for errisa account... yawn.
Trade of the day ... Bought back a APA Nov. 95 for .15 from .95 to close. Yes I know it expires a week from Friday, I needed the margin to free up some cash.
Covered Calls, if you can find any premium. Dont go for the big credits and try to keep the delta in the 90's, above overhead resistance and three standard deviations on the strike price. Dont go out beyond 60 days for the most part as the time value drops off quick (your best friend). Be sure it's a price your client would be happy to sell the stock for as well.I have never used options before(frmr EDJ) where is a good place to start to learn how to, so I can add it to my business…
[quote=Gaddock]
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Both. The man could sell ice to eskimos, or is it eskimoes?
[quote=Provocative Put] [quote=Gaddock]
Prov,
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Both. The man could sell ice to eskimos, or is it eskimoes?
[/quote] Not to mention sand to the sand man, ice to the ice man ,and pussy to the Navy. Leroy was the man!