The Money Tree

Safely Generating Income in Retirement

What Others are Trading – May 2010

Posted by mounddweller on May 7, 2010

All,

Sorry I haven’t been posting much of late.  I’ve been traveling a lot these past few weeks and busy with my “day job”.  Here’s this months post for what you have been trading.  I’ll be back hopefully this weekend with an update on my recent trading activities as well.

Regards,

Troy

Advertisements

5 Responses to “What Others are Trading – May 2010”

  1. Rich said

    with the market pulling back this week I had a few May puts go deeper in the money than I was comfortable with so I did some rolling forward:

    rolled a INTC May 24 to Oct 24 for a net gain of about $80
    rolled a SPWRA May 17 to Sep 17 for a net gain of about $123
    rolled a AA May 14 to Jul 14 for a net gain of about $19

    I still have a AA May 13 put in play but will worry about that when we return home from our rode trip. the above trades may not seem like much but its enough to help pay for this weeks camping trip and when your retired you can’t ask for much more than that.

    I hope yesterdays glitch in the market did not hurt anyone.

    Rich

  2. Rich said

    Shares of AA have dropped about 200 basis points over the last month and is currently trading at 12.22. Today I rolled 2 May 13 put contracts. I bought to close 2 May 13 puts and sold to open 2 Jun 13 puts for a net credit of $50

    I do not own any shares of AA but have a 7.6% return on my capitol at risk on this scorecard for 5 months.

    I also have a May 12 put open and will wait and see if I need to roll that prior to fridays expiration.

    • Rich said

      Wow what a day. How low will the DOW go before we find a bottom? Alcoa has continued its downward trend, following the rest of the market. It got down to about 11.02 today. I went ahead and rolled my May 12 to Jun 12. Picked up a little more premium and now have a 7.8% gain over the past 5 months on this scorecard. I now have Jun 12, 13 and 15 puts in play. Will most likely have to roll them also before June expiration.

      Rich

  3. Rich said

    Yesterday was kind of interesting. With the large drop in the DOW all my stocks were down with the exception of SPWRA which actually traded higher. It came down some again today and I sold the Jun 10 put for a net of $33.75. This gives me a return of about 3.4% for one month. My five month gain so far on this scorecard is 8.97%

  4. Rich said

    With the market continuing to sell off today I decided to take advantage of the voliltility and I rolled forward all my puts on INTC, AA and KFT to July or later. Picked up some extra premium and gave myself some wiggle room as we wait and see if the market will pause or continue down. I am also going to out of town during June expiration so this way I won’t have to worry about being exercised. I left all my June covered calls open, if by chance any are assigned I will be able to use the cash to sell more puts.

    My May 26 calls on AT&T expired out of the money and I sold 2 Jun 26 calls yesterday. I have a 4 month return of just over 5% on my AT&T scorecard so far.

    Rich

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: