The Money Tree

Safely Generating Income in Retirement

What Others are Trading – June 2010

Posted by mounddweller on May 31, 2010

All,

Here is the post for all of your June trades.  Rich, can you believe it, I actually got the new post added before we were several days into the new month!?!  Hope everyone is having a great Memorial Day.  Please take a few moments to give thanks and remember those who made the ultimate sacrifice for our country.

Regards,

Troy

Advertisements

17 Responses to “What Others are Trading – June 2010”

  1. Rich said

    I will be traveling next week and not sure if I will have access to Wi-Fi so I rolled two puts forward today. Both are in the money and I do not want to be exercised yet.

    Rolled SPWRA JUN 10 put to Jul 10…..I now have a 9.27% return on this scorecard since January 2010

    Rolled a PFE JUN 16 put to SEP 16….. I now have a two month return of 5.52% on this scorecard

    • mounddweller said

      Rich,

      Safe travels! Keep that RV on the right side of the road. Where you headed to this time?

      Troy

      • Rich said

        Heading down to Disney World. Meeting my daughter and her husband and our granddaughter there. Granddaughter turned 5 recently. This will be her first trip there. Not taking the RV though, staying in a time share not far from the park.

        Rich

  2. Rich said

    The following options expired OTM last friday:

    DRYS Jun 8 call – today I sold the Jan 7.5 covered call for a net gain of $6.75
    GE Jun 19 call – today I sold the Dec 19 covered call for a net gain of $29.75
    MO JUN 21 call – today I sold the Jul 20 covered call for a net gain of $57.75

    My KFT Jun 29 call closed in the money and I was assigned. When this transaction is settled on wednesday I will take a look at selling either a Jul or Aug cash covered put. I will continue to sell puts, building up cash on this scorecard and take assignment when I feel the price is discounted enough. This is a stock I would like to hold long term but only purchase it at a deep discount.

    Rich

  3. Rich said

    SPWRA update. I copied my excel scorecard for this stock to show my activity since Jan. I have an overall gain of 8.02% so far.
    Date ACT Shares cost Contracts SYM Month Strike premium Net Status
    1/19/2010 STO NP 1 SPRWA Feb 20 0.5 $41.75 put expired in the money
    2/19/2010 BUY 100 2017 SPRWA $0.00 100 shares put to me
    2/22/2010 STO CC 1 SPRWA Mar 20 1.15 $106.75 call expired OTM
    3/22/2010 STO CC 1 SPRWA Apr 20 0.35 $26.75 stock closed at 18.29 option expired OTM
    4/20/2010 STO CC 1 SPRWA May 20 0.5 $41.75 CC expired OTM stock closed at 11.22
    4/20/2010 NP 1 SPRWA May 17 0.5 $48.75
    5/4/2010 BTC NP 1 SPWRA May 17 ($154.25) buy back may 17 put
    5/21/2010 STO NP 0 0 1 SPWRA Jun 10 $33.75 rolled forward to Jul 10 put
    6/10/2010 STO NP 100 1017 1 SPWRA Jul 10 $17.50
    6/21/2010 STO NP 100 1100 SPWRA AUG 11 $15.75
    5/4/2010 STO NP 100 1717 1 SPWRA Sep 17 $277.75
    6/21/2010 STO CC 1 SPWRA Sep 20 $12.75
    $0.00

    400 $5,851.00 NET> $469.00
    basis $5,851.00
    % gain 8.02%

    Net cost per share $13.46

    Let me know if my scorecard makes sense.

    Rich

    • mounddweller said

      Rich,

      Let’s see if this works…

      Date ACT Shares cost Contracts SYM Month Strike premium Net Status
      1/19/2010 STO NP 1 SPRWA Feb 20 0.5 $41.75 put expired in the money
      2/19/2010 BUY 100 2017 SPRWA $0.00 100 shares put to me
      3/22/2010 STO CC 1 SPRWA Mar 20 1.15 $106.75 call expired OTM
      3/22/2010 STO CC 1 SPRWA Apr 20 0.35 $26.75 stock closed at 18.29 option expired OTM
      4/20/2010 STO CC 1 SPRWA May 20 0.5 $41.75 CC expired OTM stock closed at 11.22
      4/20/2010 NP 1 SPRWA May 17 0.5 $48.75
      5/4/2010 BTC NP 1 SPWRA May 17 -$154.25buy back may 17 put
      5/21/2010 STO NP 0 0 1 SPWRA Jun 10 $33.75 rolled forward to Jul 10 put
      6/10/2010 STO NP 100 1017 1 SPWRA Jul 10 $17.50
      6/21/2010 STO NP 100 1100 SPWRA AUG 11 $15.75
      5/4/2010 STO NP 100 1717 1 SPWRA Sep 17 $277.75
      6/21/2010 STO CC 1 SPWRA Sep 20 $12.75
      $0.00

      400 $5,851.00 NET> $469.00
      basis $5,851.00
      % gain 8.02%

      Net cost per share $13.46

  4. Rich said

    PFE scorecard – I reformated the spreadsheet as “TEXT” to see if it will copy to the blog

    Risk / Strike
    Date ACT Shares cost Contracts SYM Month Price premium Net Status
    40295 STO NP 0 0 1 PFE JUN 16 0.46 37.75 rolled forward to Sep 16 put
    40340 STO NP 100 1617 1 SEP 16 51.5

    100 1617 NET> 89.25
    basis 1617
    % gain 5.52%

    Net cost per share 15.2775

  5. Rich said

    reformated PFE scorecard again

    PFE Scorecard
    4/27/2010 37.75 started scorecard by selling 1 Jun 16 cash covered put @ .46
    6/11/2010 51.50 rolled the Jun 16 put to Sep 16 added 51.50 premium

    6/11/2010 89.25 Total
    6/11/2010 1617.00 capitol at risk
    6/11/2010 5.52% % return

  6. Rich said

    Update on my Kraft scorecard. My Jun 29 call was assigned last friday. Today I sold 1 Aug 28 put @ .52. The following is a history of my trades on this scorecard. I’ve got a nice return om my capitol so far.

    Kraft Scorecard
    1/25/2010 $0.00 purchased 100 shares of KFT for total cost of $2766
    2/9/2010 $117.75 sold 1 Jun 29 covered call contract
    4/14/2010 $29.00 received dividend on 100 shares
    4/27/2010 $34.75 sold 1 Jun 29 cash secured put contract
    5/25/2010 $31.50 rolled Jun 29 put to Jul 29 put
    6/18/2010 $117.00 Jun 29 call assigned for $2883 cash ( 2883 – 2766 )
    6/23/2010 $43.75 sold 1 Aug 28 put @ .52

    6/23/2010 $373.75 Net income ( premiums + dividends+return on sale of stock)
    6/23/2010 $5,734.00 Capitol at risk
    6/23/2010 6.52% Net return on scorecard

    • Rich said

      Kraft had pulled back a little over 2% the past week and was down about 25 basis points again this morning. I went ahead and rolled my Jul 29 put to Aug 29 and picked up a little more that a 1% gain on the cash securing this put. Here is an update of the scorecard:

      Kraft Scorecard
      1/25/2010 $0.00 purchased 100 shares of KFT for total cost of $2766
      2/9/2010 $117.75 sold 1 Jun 29 covered call contract
      4/14/2010 $29.00 received dividend on 100 shares
      4/27/2010 $34.75 sold 1 Jun 29 cash secured put contract
      5/25/2010 $31.50 rolled Jun 29 put to Jul 29 put
      6/18/2010 $117.00 Jun 29 call assigned for $2883 cash ( 2883 – 2766 )
      6/23/2010 $43.75 sold 1 Aug 28 put @ .52
      6/28/2010 $36.50 rolled Jul 29 put to Aug 29 put

      6/23/2010 $410.25 Net income ( premiums + dividends+return on sale of stock)
      6/23/2010 $5,734.00 Capitol at risk
      6/23/2010 7.15% Net return on scorecard

  7. Rich said

    INTEL scorecard update. INTEL has been selling off recently but over the past three months it seems to find support around $20. Its currently trading about that right now so today I sold to open 1 Aug 19 put @ .78. I added $1917 more capitol at risk and this lowered my YTD gain to just under 6%. the history of my transactions is added below:

    INTEL Scorecard
    1/4/2010 $0.00 purchased 100 shares of INTC for total cost of $2083
    1/4/010 $141.75 sold JUL 21 covered call @ 1.50
    3/1/2010 $15.75 received dividend on 100 shares
    3/9/2010 $12.75 sold 1 APR 19 put @ .21
    3/22/2010 $52.50 sold 2 May 20 puts @ .31
    4/1/2010 $17.75 sold 1 Jul 19 put @ .26
    4/16/2010 $0.00 Apr 19 put expired OTM
    4/27/2010 ($8.00) bought to close 2 May 20 puts @ .04
    4/27/2010 $72.00 sold 1 May 24 put @ .78
    4/27/2010 $50.75 sold 1 Jun 23 put @ .59
    5/6/2010 $86.50 bought to close 1 May 24 @ 2.62 and sold 1 Oct 24 @ 3.58
    5/12/2010 $49.75 sold 1 Jun 22 put @ .58
    5/25/2010 $99.50 buy back Jun 22 put @ 2.09 and sell 1 Oct 22 @ 3.18
    5/25/2010 $78.50 buy back Jun 22 put @ 2.09 and sell 1 Oct 22 @ 3.18
    6/1/2010 $15.75 received dividend on 100 shares
    6/25/2010 $69.75 sold 1 Aug 19 put

    6/25/2010 $755.00 total cash received
    6/25/2010 $12,868.00 capitol at risk
    6/25/2010 5.87% overall percent gain on scorecard

    • mounddweller said

      Rich,

      I’m looking to establish a position in INTC too. I have an order in to STO 5 JUL $18 puts at $0.23. That’s currently a penny higher than the ask so I may not get filled. Only time will tell. Am also considering selling an equal number of AUG $17 puts but am going to hold off on that for now.

      Regards, Troy

      • Rich said

        I would like to get to a point when I can sell multiple contracts. For now I’m just plugging away buiilding up cash one contract at a time for the most part. Teddi gave me some good advice awhile back about selling in or near the money puts. One of the good aspects of selling puts on INTC is the ability to keep rolling them forward when they are in the money and picking up the extra premiums.

        Rich

    • Rich said

      Today I rolled my Jul 19 cash secured put to an Aug 19 put for a net credit of $38.50 which gives me a 1 month return on this capitol of 2% ( $38.50/$1917 = 2% ) I now have an overall 6.17% ROC on my INTEL Scorecard since Jan of this year. This now gives me two Aug 19 cash secured puts which will save me some commission costs and be able to pick up larger net credits when rolled again.

  8. Rich said

    I currently find myself in a pickle. My Jul 15 cash covered puts on AA are now deep in the money and in order to avoid assignment I would have to roll all the way to Jan 2011 to eck out a little premium and buy some time. We still have just over two weeks until Jul expire so dont have to take action soon, I wouldn’t expect the buyer of my put to take assignment with the stock trading at 10.59. I also have Jul 14 and Jul 12 puts. So far I have built up $886 cash on this scorecard. I do not own any shares of AA.

    Anyone got any ideas?

    Rich

    • Rich said

      I went ahead and rolled my Jul 15 puts to Jan 15. I had to roll this far out in order to get a small credit. I now have a 7 month gain on this scorecard of 8.3%. I still have to deal with the Jul 12 & Jul 14 puts prior to expiration next week.

      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: