Trade of the day

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Nov 13, 2008 6:03 pm

Sold Dec. GE 12.50 Puts w/.82 at the end of the day yesterday.  Was looking for my checkbook earlier this morning, but feeling pretty good about it right now.

Nov 18, 2008 7:18 pm

STT Nov 30 for .60, not bad for thre days.  Met had some huge last minute premium as well as GS & MS but the STT has a 96% probability of expiring out of the $$

Nov 19, 2008 2:34 pm

Here’s a trade that seems almost too good to be true.



Buy RIMM at 45.70 and write a December 45 Straddle for  12.50.



If the stock remains where it is, or goes higher the gain will be 11.80
on an investment of 33.20–about 35% between now and Dec 19.



The downside is that you end up owning additional RIMM at
32.50–average cost will be less than 40 in new shares bought if the
put is exercised plus those bought at this time to cover the call.



Plus, if it’s down next month just roll the entire position to
January.   If you’re catching 12 points of time value per
month it won’t take long to collect enough to pay for the shares.



Blackberrys are not going to disappear and RIMM seems capable of
staying on the leading edge of the technology.  The PE ratio is
15, but hell we’re in “The New Economy.”  What was the PE ratio of
JDS Uniphase, or how about that sock puppet pet food seller?



Just a zany idea from your pal Put Trader.

Nov 19, 2008 4:16 pm

[quote=Gaddock]

STT Nov 30 for .60, not bad for thre days.  Met had some huge last minute premium as well as GS & MS but the STT has a 96% probability of expiring out of the $$

[/quote]

Gadd…how are you deriving the probability of expiration that you cite…
Nov 19, 2008 4:48 pm

It’s the inverse of the hedge ratio (delta)

Nov 19, 2008 5:17 pm

I did so many today it’s hard to say what was the best. So putting the screws market maker was the high point of the day. I had 249 of 500 call contracts (149 were Jan 10 2.50 and 100 Jan 9 2.50’s all pre reverse split TMA) Anytime I put more than a few contracts he would raise the ask to .10 or even .15. Since they were sold for .20 and .35 and dont trade on the penny I didnt want to pay more than a nickle for the buy ro close.

  So I had two FA's (We are still FC's) get the orders ready to be put in  on two diff machines.   I locked the market on the Jan 5's by selling and buying one contract from the same location at the same time, all or nothing so it didnt even show on the tape and the second the market was locked I had both of them enter the two orders at the same moment.   I got a fill on all 249 for a nickle. If I put the screws to him in the confusion real or imagined I laughed me arse off for a good 20 mins.
Nov 20, 2008 5:09 pm

Looked like I had a clean sweep for Nov expirations … today rolled 8 positions but the option chains were all wacked out. On all but one I rolled out of harms way and did so with a credit. Never thought I would see that on a one month roll. Trade of the day had to be the GS Nov 50 roll to Dec 40 and got additional 2.80 per share and 10K less liability. Holy crap you have to be quick on the draw these days. Got .90 on a MS 10 Nov to a Dec 7 1/2 as well.

Nov 20, 2008 6:51 pm

No, sure dont.

Nov 21, 2008 4:32 pm

This isn’t options but picked up SD at 5.16 yesterday when all the natural gas and energy stocks went down(also picked up chk & btu). SD closed at 7.71… 49% increase…

Nov 21, 2008 4:57 pm

Good trade … CRAZY DAY   I rolled position after position all with a credit, never seen anything like it. It was like getting into new positions with a lower strike price AND GETTING PAID … what the hell iks going on ??? I dont get it but it works for me.

Nov 21, 2008 4:59 pm

The IV spikes were huge this morning. If I had to read the tea leaves I would say more people than not are getting ready for the rubber band to break.

Nov 24, 2008 8:46 am

Got in on C at 3.45 under the impression that it was too big and more importantly too global to fail.. premarket trading has it at $5.75.. nice bump.. I like Bove's price outlook of $9 and that was before the gov't endorsement.. Lost my nice dividend but just gained 50% so I will take the switch

Nov 26, 2008 4:17 pm

The C trade looking better every day... now up over 50%

Nov 27, 2008 11:26 am

[quote=Squash1]

The C trade looking better every day... now up over 50%

  [/quote] I believe Mr. Steve Miller himself said it best, "Go on, take the money and run..." 
Dec 1, 2008 4:52 pm
Bought back Mon Jan 120's for .15 from 1.30 and resold the Jan 100's for 1.05 and still remain within my discipline. I'm really starting to dig this 60+ VXO envirnment.
Dec 1, 2008 5:36 pm

You got to love this volatility!! I know my clients are. When the market is moving, someone is making money! Hahahaha!!!

Dec 2, 2008 5:39 pm

Buying yield .... HOG  Dec 15's for 1.60. At Hog's current yield picking it up with a basis of 13.40 puts the yield in the 9% area, It's on our DSIP focus list so I feel pretty good about its capacity to continue the divs. If I dont get it we got paid for being wrong. If we do I write a covered call as soon as we've been asigned.

 
Dec 2, 2008 5:46 pm

RISKY RISKY RISKY

  Sold Jan Puts 2 1/2's on GM for $1. Yep good chance on eating this one but GM stock with a 1.50 basis isnt such a bad thing .... maybe. If it expires out of the money the annual return is 480% in a month and 1/2.
Dec 2, 2008 8:31 pm

lol @ “eating this one”.

The premiums are ridiculuous if you are willing to take a shot.  Other than your posts, the thing that spurred my interest in writing more puts was the day in late Oct/early NOV when HIG gapped open and traded down to about 9, and the HIG NOV 10 Puts were trading at 4 with 3 weeks left.  Nuts.

Happy writing!  Be careful that you don’t get carried away!

Dec 2, 2008 9:52 pm

“Be careful that you don’t get carried away!”

  LOLOLOL Amen to that!   look at the GS chain a few days before expiration!!!