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SRS - Ultra short real estate ETF. Down here at support. I don't know about you, but I am surprised this one is doing this well (inverse way I mean). Nice premiums for covered calls.
Long a small position at 85.01. Sold the June 85's for 6.20.
Top 10 Index Companies1 Weight
Simon Property Group Inc 7.13%
ProLogis 5.18%
Vornado Realty Trust 4.21%
Public Storage 3.91%
Equity Residential 3.86%
Boston Properties Inc. 3.76%
General Growth Properties Inc 3.02%
Kimco Realty Corp 2.95%
Host Hotels & Resorts Inc 2.85%
Avalonbay Communities Inc. 2.55%
CSIQ - Rolling out of May 25's into 30's.
LDK - Nice premiums on May expiration but earnings due out on the 12th.
FWIW, Bought some earlier today and sold the May 35's. Long at 35.80. Sold the May's for $2.70. Protection down to 33. I don't mind owning this one lower as I think it has exceleent long term potential.
EJ- Bought the May 15's back for $3.00. Rolled over to June 17.50's for 2.20.
HMIN - Long at 22.33. Sold the June 22.50's for $2.00.
Chinese Hotel/motel owner. Thinking about the Olympics
Thanks Joe,
I was just thinking of just buying XEVAV leaps naked.
You've been posting some nice trades.
Well, the ask will give the holder 40% of the current stock price right now to trade with over the next 261 days. Look at it as a covered call would be a way to look at it. If you owned the stock here at 19.35 someone will give you 7.90 right now to play with next 9 expirations. Free money and the writer of the call has dwonside protection.
If you like DFS and think it has potential to hold for that length of time probably not a bad way to buy it with the call but not much downside protection in possibly losing you premium.
The ask just moved up to 8. They must be reading this board....<g>
Now down to 7.90 but no buyers.......
Perhaps I'm not looking at this correctly but DFS Jan 2009 12.50 leaps(XEVAV) look cheap at 7.10.........
12.50 + 7.10 will give you a break even price of 19.60 with plenty of time to make a nice profit.
Appreciate your thoughts on this.
DUG - Covered call idea. Long at 32.90. Sell the MAY 33's for 1.40. 4.5% return in 2 weeks if taken out. Crude fundies seem to have weaken a bit here. With the biggies earnings reports priced into the market I expect more weakness, which would be bullish for DUG.
Today's move has been strong so it may be better to wait for a pullback.
Hi Jim
Thank you for your reply. The market in general looks strong and all the bad news do not affect the buyers so we'll see things in the fullness of time as you say.
all the best
IK
IK, I sold my XLE (Energy sector) PUT Option, since I think the price of Oil won't drop a lot and I had a 22% profit in the Option. Although the broad market will drop into the 40 week cycle low, due the third week of May, I am not so sure that the Oil sector is going to particpate much, in that decline.
Sometimes a Bird In Hand Is Worth Two In The Bush.
Jim
Hi Jim
just wondering in your work the market should go to a new low around may 22nd so why you sold your puts? probably their value suppose to be higher in few days?
Thanks and Thanks for posting all your remarks
UNCOVERED PUT
Sold XLE June $85 (strike) Put Options at $5.75 each for a 22% profit.
Jim
LDK - Buy it here at 30.25. Sell the June 30's for 3.20. 58 days until expiration. Nice return if taken out. Worse case you own LDK at 27.05.
Just an idea . I have a full position in LDK and not adding.
Can anybody name a stock not on the REG-SHO threshold list that violates put-call parity like DNDN does?
Example: Short DNDN at 5.58, short Jan09 puts for 2.35, buy Jan09 calls for 2.25. Nice, but doesn't work because I can't short DNDN.
EJ- long at 14.90. SOLD the May 15's for 1.10.
FMCN - long at 35.40. SOLD the JUNE 35 calls for 4.30.
Jim, Joined you on e XLE JUNE puts at 4.45.
UNCOVERED PUT
Bought XLE June $85 (strike) Put Options at $4.70 each.
Jim
UNCOVERED CALL
Sold Citibank May $22.50 Call Options (CEA) at $3.50 each, +91 cents (35%).
Jim
Thanks gtober......
Try this if return is what you're looking for.
http://www.freeoptioninfo.com/
Thanks Joe,
I'm trying to create a list of stocks with the best return for a covered call on stocks in an uptrend or with little downside without going through a ton of charts one by one....
Thanks. Try this Yahoo link.
http://biz.yahoo.com/opt/
Hi Joe,
Nice board.
Is there anyplace where I can screen for options by volume and price.?? (free)
I'd also like to be able to screen for overpriced issues.
Thanks,
IWM iron condor.
May put spread.
Buy May $66 and write May $67 put. Net gain objective of $0.20.
May call spread.
Buy May $75 and write May $74. Net gain objective of $0.24.
Total collected premium of $0.44. Total potential loss of $0.56 ($1.00-$0.44)
Iron condor update. Successful low risk trade.
Close out the puts for a net cash outlay of about $0.04 or just let them expire. Close out the calls for a new cash outlay of about $0.06 or just let them expire. Total cash outlay of about $0.10 and total collected premium of $1.16. Total gain on the trade of $1.06.
My concerns were not founded in this case, and I guess it is a good lesson that stocks do not generally make significant moves most of the time.
I am considering an iron condor on IWM.
DUG - Long at 33.90. Sold the MAY 35's for 2.10
SPWR - long at 90.25. Sold the APRIL 90's for $4.00. Nice 4% gain in 4 trading days if taken out at $90.
CFC - one of the best covered call ops out there IMO. Buy at $5 and you can sell the may 5's for .50 for a 10% return. Sure it is a financial and could go lower, but with it sell for less that 20 cnte son the dollar it offers reasonable value, and BAC's $6.50 offer to be completed in 3Q puts some support under it.
Afraid the deal doesn't go through? Bing the largest mortgage company and picking up market share from others going out of business, I think CFC is only worth more than the current offer than less. The American public will always be buying and selling homes with mortgages. CFC has been writing good mortgages since the subprime issue hit so every loan they make makes their portfolio of bad loans look a wee bit less bad.
GG Buy/write. Sell the Apr $40 for $1 or the May $40 for 2.50. I am watching it, no move yet. Still worried about OP's gold call.
Yep, I got whipped-sawed out of SMN. Very nice comeback on them too. Still have a little in a couple of accounts.
AA says Aluminum demand to be up 8.5%. They last said in a previous forecast an increase of over 9% in 08'. Hmmm.....
Nice comeback on DUG. Nice drop in time premium too.
Yep, SMN and DUG are stinkin' up my ports. Good idea. I have been busy today looking at everyone of my covered calls and rolling out to May in many cases.
DUG is looking weak. If it breaks below it's most recent low I will consider rolling my calls down a couple of strikes and capture more premium while still in May. As long as the low holds, I think I'll stand pat. My calls are written at $36.
UNCOVERED CALL
Bought Citibank May $22.50 Call Options (CEA) at $2.59 each.
Jim
BTW, a hugely bearish formation for oil.
http://stockcharts.com/h-sc/ui?s=$WTIC:$XEU&p=M&b=5&g=0&id=p56566347022&a=133182185&listNum=1
Yes, I think you can see the power of this strategy. Time decay is a powerful ally. Like I said, I don't know really if all options is better or worse. You do take a lot of aggressive positions with the covered calls. What one has to do is determine if a less aggressive condor is more or less profitable, once you factor in the maintenance.
I think I am going to order McMillan's latest and see if I can find time to read it this summer.
I have given it some thought. I really need to study it more. I would like to experiment with one (iron condor). Right now what ever I am doing is working great and leery of changing right now. I have to admit the market has been going my way since before the first of the year. Funny thing is that I really don't know why. I am assuming the covered calls are helping a bunch, but it helps to be on the right side of the market. All my managed accounts hit record highs again today. That's about 7 trading days in a row in up and down markets. I have started to roll some positions into May calls as the margins have been squeezed out.
Joe, have you given any thought to using iron condors in your neutral strategy as opposed to long stock with covered calls? Most of the time I keep coming to the conclusion that one just doesn't need the shares at all if neutrality is the objective. Just wondering if you thought about it, and what your conclusions may have been.
One thing that I could see preference for the shares would be in chasing more aggressive returns and fatter premiums.
Nice to have the endorsement. Thanks. SMN - Long at 37.20. Sold the MAY 35's for 4.20.
DUG - Long at 36.65. Sold the MAY 37's for 3.50
LEH - Long @ 41.10. Sold the MAY 35's for 8.80. Max gain 2.70. 8.4% return on money at risk. (41.10 minus credit of 8.80 = 32.30) Worse case I own LEH at 32.30 46 days from now.
New position for JS portfolio. I am experimenting (with real money) to try to add some market neutrality to this portfolio. I have position in DUG and SMN to offset some long positions. I have been doing this with some of the other bigger accounts I manage and it has worked fairly well aloowing me to go heavier into margin without a significant amount of additional risk - basically giving me additional leverage with limited additional risk.
Today I added SSO at 66.33, and sold the APR 66 contract for $3
I then bought TWM at 81.56 and sold the APR 82 at $4.00.
I have a little more exposure on the short side, but that's how I feel about the market. If I could have bought 100 shares a piece at the same price I would have rathered do that. BUYing UWM 47.80 (TWM's sister) would have meant buying 200 shares to get close to 100 shares of TWM and that would have left me with a bullish bias.
Anyway, this $25,000 account is now just about fully margined. I will post my first months results tomorrow. Right this moment I have $24,200 invested long, and $16,100 invested short.
They certainly do help. I have a number of shares that have avg. costs way below market. NEM is 18, NTAP is 13 BRCM is 13 - etc. I build CASH every month, and use other people's money to add to the total number of shares I have every month, which in turn has a compounding affect all it's own.
Now, as to that China position, it seems to me that China has a ways to go down. Which is also my view of the markets once we rally. So, given the LEAPS strategy is a long term one, I am going to hold off on it until the other shoe drops. I'll re-visit then.
gtober, I love covered calls. What a difference it has made in my monthly performance. Better returns with what I perceive to have less risk. This month I have showing a 4.5% average return on the 6 largest accounts I manage. The S&P, DOW and Nas are all down for the month. In addition, these are my lowest monthly returns this year. After the first of the year I got very aggressive in doing covered calls in all my managed accounts. I love the fact that time decay is adding to my accounts every minute that goes by including weekends. I think what has also helped is the hedging I do with the ultra-short etf's. They have strong call premiums as well. These same accounts on average were up everyday last week on up days and down days due mostly to this hedging strategy.
I hope to start experimenting with those covered leaps soon.
Perhaps it's time for a new advertising campaign like "They're a crock if the aren't Crox!"
CROX Looks like the principals are buying this one. The 250 should be 250k.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28032130
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