Weekly Put Option Strategy – 02/24 Expiration
Posted by mounddweller on February 16, 2012
Fellow Traders,
This week 73 trades met our Weekly NP Strategy selection criteria. A spreadsheet containing all 73 possible trades can be found here: http://finance.groups.yahoo.com/group/CoveredCalls-NakedPuts_OptionStrategies/files/.
Of the 73 possible trades I ran across two that I would be interested in looking into further.
(1) Alpha Natural Resources $19 strike price on stock that closed today at $20.90. Premium is $0.23. ANR reports quarterly earnings before the bell on expiration day, 2/24. Seems to me all of the bad news may already be priced into this stock. Thus, even with a poor earnings announcement it might not fall much further, or it could actually rise on bad news.
(2) Petroleo Brasil SA Petrobras (PBR). As you know I just got out of a multi-month position in PBR. So why would I want to reenter it? Well, mainly because it has come down a little bit off its recent highs of around $32 despite oil going up. Today it closed at $29.34. The $28 put trades at $0.16. I think PBR has some support at $28 so this might not too risky a trade.
Check out the 71 other trades. Let me know if you see one you like. There are several well-known large-caps on the list this week. Most, if not all, report earnings in the coming week.
Regards,
Troy
Rich said
Troy,
I have a FEB 20 put in play now. I sold the put back on February 3 @ .30 I figured a 1% ROC for just two weeks was pretty good. I’m watching it close today. If I have to roll it I would go down to the Mar 19 strike.
Rich
Rich said
I went ahead and rolled my FEB 20 put out and down to a Mar 19. I bought back the FEB 20 @ .03 and sold the Mar 19 @ .90
the weather was great here today. I was working in the garden and everytime I checked on ANR it kept moving down all day. I finally said to heck with it and rolled my put. It was too nice of a day to sit in front of my computer all afternoon. So if ANR can close above 19 on March expire I will have a ROC of just over 5% for this scorecard for about six weeks at risk.
Rich