Stock Symbol: [private_monthly]DIS[/private_monthly] Option Strategy: diagonal call spread Max Risk: $1164 Called Return: 20% ($233) Uncalled Return: 9% Profit Range: $33.42 – $43.13 Reasoning: [private_monthly]Disney – DIS[/private_monthly] has very strong fundamentals and is currently trading [Read More …]
Archives for September 2010
New Trade – bear call spread
September 30, 2010 By Leave a Comment
Stock Symbol: [private_monthly]AMZN[/private_monthly] Option Strategy: bear call spread Max Profit:$88 Max Risk: $412 Max Return: 18% (accounts for commissions) Profit Range: $0 – $165 Reasoning: Although it’s been a strong performer, [private_monthly]AMZN[/private_monthly] is technically near [Read More …]
Trade Adjustment – Combo Trade
September 24, 2010 By Leave a Comment
Stock Symbol: [private_monthly]GLW[/private_monthly] Option Strategy: Combo (short put / long call) Update: Time to turn this trade into a covered call. As our cost basis for our 100 shares of [private_monthly]Corning – GLW[/private_monthly] is $17.70, [Read More …]
New Trade – Call Back Spread
September 23, 2010 By 2 Comments
Stock Symbol: [private_monthly]ADBE[/private_monthly] Option Strategy: Call Back Spread Max Risk: $592 (close at $28 on 11/19/10) Max Gain: Unlimited Profit Range: $29.48 + Max Risk if stock closes at or under $27 by Nov expiration: [Read More …]
New Trade – Covered Call
September 23, 2010 By Leave a Comment
Stock Symbol: [private_monthly]OVTI[/private_monthly] Price at time of Trade: $21.25 Target Price: $23 Strategy: Covered Call Reasoning:This stock has strong fundamentals and is currently trading in the low range of it’s trading cycle, giving it more [Read More …]
New Trade – Bear Call Spread
September 22, 2010 By 2 Comments
Stock Symbol: [private_monthly]SSO[/private_monthly] Option Strategy: Bear Call Spread Risk Level: low Max Risk: $448 Max Gain: $352 = 78% return Price for Max Gain at expiration: $39 Break Even at Expiration: $39.88 (2.39% higher than [Read More …]
Trade Update – Combo (short put / long call)
September 20, 2010 By Leave a Comment
Stock Symbol: [private_monthly]GLW[/private_monthly] Option Strategy: Combo (short put / long call) Update: Occasionally, when we’re looking to enter a covered call position, we’ll start off by implementing a combo option strategy which involves the simultaneous [Read More …]
Closed Trade – WFC covered call
September 20, 2010 By Leave a Comment
Stock Symbol: WFC Price at time of Trade: $25.75 Target Price: $29 Option Strategy: Covered Call Trade Details: BTO 100 shares for $25.73 per share STO 1 Sep 26 call option for $0.91 Effective Cost [Read More …]
Closing Trade – MOT combo trade
September 17, 2010 By Leave a Comment
Symbol: MOT Let’s close out our trade on Motorola here: STC (Sell To Close) 1 MOT Oct10 7 Call @ $1.39 $139 BTC (Buy To Close) 1 MOT Oct10 7 Put @ $0.03 ($3) for [Read More …]
