The Money Tree

Safely Generating Income in Retirement

What Others are Trading – October 2010

Posted by mounddweller on October 5, 2010

Time flys when you’re having fun. Once again I am late in getting the new message posted. Please post your trades as comments.

10 Responses to “What Others are Trading – October 2010”

  1. Rich said

    INTEL Scorecard update

    In my post of Oct 4th I mistakenly said that I had an Oct 24 put to roll. I should have said I have an Oct 22 put instead. Anyway, I went ahead and rolled the Oct 22 put out to an Apr 22 put for a net credit of $68.50. I had to go all the way to April to get a decent premium. This will give me more time to see if Intel can work itself back up closer to my put.

    I also took the capital that I got from my MO assignment last month and sold a Nov 18 put for a net premium of $21.75 which is about a 1.2% ROC for one month.

    My 4 Oct 17 puts will hopefully remain out of the money until Oct expire. After Oct expire the Dec option prices will be available and I will decide what to do with that capitol at that time. Obligating the additional $1800 to this scorecard to cover the put reduces my net overall gain to 6.45%. This will move up as I continue to roll the put forward in the following months. My goal is to maintain an annual return of 12%

    Rich

  2. Rich said

    Alcoa scorecard update

    During the past 30 trading days Alcoa has slowly trended up from just above $10 to just under $13. On 5 Oct I rolled my 3 Oct 13 puts out to 3 Nov 13 puts for a net credit of $45.50. This morning as I looked over the option chain for AA I realized that I could roll the Nov 13 puts forward and down to Jan $12.50 puts for a credit. I made that trade and picked up an additonal $30.50 for this scorecard. By being able to roll the puts down below 13 I have gained a little more wiggle room and possibly keep the puts out of the money by Jan expire. The current goal for this scorecard is to keep generating income and not own shares of Alcoa

    Rich

  3. dealmakr said

    Hi Troy,

    I closed my WFR position on 10/12. Here is the summary;

    The WFR trade just closed is one that I was never real happy with. From the initial entry the stock moved lower and I felt that I had overtraded the position. Even though I liked the potential of the company, the decision to exit the position enables me to take a more objective look at where the stock can go from here. With INTC & JPM selling off after earnings, maybe stepping away before earnings will be the prudent move, but Mr Market will decide.

    Opening position WFR updated 10/12/10

    05/03/10 Bot 2500 WFR 13.19
    05/03/10 Sold 25 May 13 Call .73 corrected
    05/03/10 Sold 25 May 12 Put .23
    05/03/10 Sold 25 Jul 12 Put .76
    05/04/10 Sold 25 Jun 13 Call .80
    05/04/10 Sold 15 May 12 Put .43
    05/05/10 Bot 2500 WFR 12.60
    05/05/10 Sold 25 Jun 15 Call .31 corrected month
    05/05/10 Sold 25 May 11 Put .15
    05/05/10 Sold 25 Jul 10 Put .33
    05/06/10 Sold 30 Jun 13 Call avg .675
    05/06/10 Sold 15 Oct 9 Put .60
    05/06/10 Sold 15 Oct 9 Put .75
    05/06/10 Sold 15 May 11 Put .33
    05/07/10 Sold 15 Jul 14 Call .60
    05/07/10 Sold 15 Jul 10 Put .65
    05/07/10 Bot 1500 WFR 11.60
    05/10/10 Sold 25 May 11 Put .15
    05/13/10 Sold 25 Jun 11 Put .31
    05/14/10 Sold 25 May 11 Put .13
    05/14/10 Sold 25 Jun 12 Call .70
    05/14/10 Sold 10 Jul 10 Put .50
    05/14/10 Sold 25 Jul 13 Call .60
    05/18/10 Sold 25 Jun 12 Call .54
    05/25/10 Sold 50 Jul 13 Call .28
    05/25/10 Sold 25 Jun 9 Put .16
    06/07/10 Sold 25 Jul 12 Call .32
    06/08/10 Sold 50 Jun 12 Call .07
    06/08/10 Sold 25 Jun 9 Put .15
    06/08/10 Sold 25 Oct 6 Put .20
    06/08/10 Sold 10 Oct 13 Call .55
    06/15/10 Bot 1000 WFR 11.50
    06/15/10 Sold 25 Oct 13 Call .85
    06/15/10 Sold 15 Oct 9 Put .50
    06/24/10 Sold 25 Aug 9 Put .39
    06/24/10 Sold 25 Aug 12 Call .45
    07/01/10 Sold 25 Jul 9 Put .27
    07/01/10 Sold 15 Oct 9 Put 1
    07/07/10 Sold 25 Jul 11 Call .07
    07/07/10 Sold 25 Aug 8 Put .20
    07/08/10 Sold 10 Aug 11 Call .58
    07/09/10 Sold 25 Aug 12 Call .30
    07/14/10 Sold 25 Aug 12 Call .31
    07/19/10 Sold 10 Sep 11 Call .60
    07/19/10 Sold 10 Sep 9 Put .45
    07/21/10 Sold 20 Oct 12 Call .66
    07/22/10 Sold 25 Sep 13 Call .28
    07/22/10 Sold 10 Aug 11 Put .56
    07/30/10 Sold 15 Sep 11 Call .20
    08/06/10 Sold 25 Sep 9 Put .32
    08/10/10 Sold 25 Aug 11 Call .09
    08/12/10 Sold 35 Sep 11 Call .31
    09/02/10 Sold 60 Sep 12 Call .06
    09/10/10 Sold 15 Oct 11 Call .40
    09/13/10 Sold 15 Oct 11 Call .53
    09/17/10 Sold 30 Oct 12 Call .24
    09/22/10 Sold 15 Nov 12 Call .33
    09/22/10 Sold 15 Oct 11 Put .54
    09/23/10 Sold 15 Nov 12 Call .30
    09/23/10 Sold 30 Nov 12 Call .45

    Closed trades Profit or loss

    05/07/10 Bot close 25 May 13 Call .29 1100
    05/10/10 Sold 1500 WFR 12.40 1200
    05/10/10 Bot close 25 WFR Jul 15 Call .23 200
    05/10/10 Bot Close 30 WFR Oct 9 Put .57 320
    05/10/10 Bot Close 40 WFR May 12 Put .44 (540)
    05/14/10 Bot Close 25 WFR Jun 13 Call .39 1025
    05/18/10 Bot Close 15 WFR Jul 14 Call .26 510
    05/18/10 Bot Close 30 WFR Jun 13 Call .27 1210
    05/20/10 Bot Close 25 WFR Jul 13 Call .52 200
    05/20/10 Bot Close 90 WFR May 11 Put .40 (2030)
    05/24/10 Bot Close 50 WFR Jun 12 Call .33 1450
    06/08/10 Bot Close 50 WFR Jul 13 Call .14 700
    06/14/10 Bot Close 50 WFR Jun 9 Put .01 725
    06/15/10 Bot Close 50 WFR Jun 12 Call .09 (100)
    06/15/10 Bot Close 25 WFR Jun 11 Put .13 450
    06/15/10 Bot Close 50 WFR Jul 10 Put .23 1150
    06/15/10 Bot Close 25 WFR Oct 6 Put .10 250
    07/02/10 Bot Close 25 WFR Jul 12 Call .03 725
    07/07/10 Bot Close 35 WFR Oct 13 Call .30 1625
    07/16/10 Bot Close 25 WFR Jul 12 Put 1.80 (2600)
    07/16/10 Bot Close 25 WFR Aug 8 Put .15 125
    07/17/10 Expired 25 WFR Jul 9 Put 675
    07/17/10 Expired 25 WFR Jul 11 Call 175
    07/21/10 Bot Close 75 WFR Aug 12 Call .29 475
    07/22/10 Bot Close 25 WFR Aug 9 Put .10 725
    07/23/10 Bot Close 30 WFR Oct 9 Put .29 1380
    07/23/10 Bot Close 10 WFR Sep 9 Put .18 270
    08/02/10 Bot Close 25 WFR Sep 13 Call .03 625
    08/06/10 Bot Close 20 WFR Oct 12 Call .18 960
    08/18/10 Bot Close 10 WFR Aug 11 Put .47 90
    08/18/10 Bot Close 25 WFR Sep 9 Put .11 525
    08/18/10 Bot Close 35 WFR Aug 11 Call .06 655
    09/02/10 Bot Close 60 WFR Sep 11 Call .36 (175)
    09/17/10 Expired 60 WFR Sep 12 Call 360
    09/22/10 Bot Close 30 WFR Oct 12 Call .10 420
    09/23/10 Bot Close 30 WFR Oct 11 Call .56 (285)
    09/24/10 Bot Close 15 WFR Oct 11 Put .18 540
    10/12/10 Bot Close 60 WFR Nov 12 Call 1.62 (7425)
    10/12/10 Sold 6000 WFR 13.26

    Total return P/L on closed option trades 7685

    Total return P/L on closed stock trades 3600

    Total P/L 11285

    Position Closed

    Good Trading

    dealmakr

    • dealmakr said

      Hi Troy,

      Another position that I am working is KLIC. I usually update the trading on Silicon Investor when things change. Have been posting there quite a few years. Anyway fairly good options premium going into earnings.

      Updated Position KLIC 10/15/10

      09/21/10 Bot 5000 KLIC 6
      09/21/10 Sold 50 Oct 6 Call .35
      09/21/10 Sold 25 Oct 6 Put .40
      09/22/10 Bot 2500 KLIC 5.77
      09/22/10 Sold 25 Oct 6 Put .40
      09/22/10 Sold 50 Oct 5 Put .10
      09/22/10 Sold 50 Nov 5 Put .20
      09/22/10 Sold 25 Nov 7 Call .20
      10/08/10 Bot 2500 KLIC 5.80
      10/08/10 Bot 2500 KLIC 5.92
      10/08/10 Sold 50 Nov 6 Call avg .40
      10/08/10 Sold 50 Nov 7 Call .15
      10/08/10 Sold 25 Nov 5 Put .20
      10/11/10 Bot 2500 KLIC 5.80
      10/11/10 Sold 25 Nov 6 Call .40
      10/14/10 Sold 25 Nov 6 Call .40
      10/15/10 Bot 5000 KLIC 6.15
      10/15/10 Sold 25 Nov 6 Put .50

      Closed Trades Profit/Loss

      10/15/10 Bot Close 25 Nov 7 Call .25 09/22 sale (125)
      10/15/10 Expired 50 Oct 5 Put 500
      10/15/10 Expired 50 Oct 6 Put 2000
      10/15/10 Exercised 50 Oct 6 Call 1750
      10/15/10 Sold Excercise 5000 KLIC 6 (09/21 buy) 0

      Total return P/L on closed trades 4125

      Total Position Cost/Premium received

      Long 15000 KLIC avg 5.93 (88975)

      Short 75 Nov 5 Put 1500
      Short 25 Nov 6 Put 1250
      Short 100 Nov 6 Call 4000
      Short 50 Nov 7 Call 750

      Net Position Exposure

      Covered Calls 15000 Shares
      Naked Puts 10000 Shares

      Just when things looked good for this stock to get called away at 6 they came out with a warning on sales for the next Q. Even though they guided the last Q higher, stock came under pressure. Decided to expand position on volatility a bit. Am looking at Oct expiration to have the Oct 5 puts and 6 calls go bingo and will look maybe to cover Oct 6 Puts if they can be bot back cheap enough.

      Disregard above statement from 10/08/10. Just shows that its just a best informed guess at times. Even with OI of 6.86K calls to 380 puts the Max Pain indicator didn’t work this expiration and stock went through the 6 strike. Decided to leave the week with no uncovered calls.

      Good Trading

      dealmakr

      • mounddweller said

        dealmakr,

        Interesting. I don’t know much about KLIC. You seem to be doing alright with it. I don’t like to trade stocks < $10. Let me know how it turns out.

        Regards, Troy

    • mounddweller said

      dealmakr,

      Sorry for the delayed response. I’ve been very busy of late and have fallen behind in my responses. Good job with WFR. It is a volatile stock. If you get in at the wrong time it can take a while to recover.

      As you’ve probably noticed I haven’t been very active on my blog. It’s not that I haven’t been trading. I just haven’t been trading many CCs.

      Regards, Troy

  4. Rich said

    INTEL Scorecard update

    I had 4 Oct 17 INTEL put contracts expire out of the money last friday. On monday I sold 4 Nov 18 put contracts @ .19 I now have 5 Nov 18 put contracts in play. INTEL has been trading in a narrow range over the past week. Thats a good scenerio for selling puts for income.

    Rich

    • mounddweller said

      Rich,

      I sold 5 NOV INTC $19 puts at $0.53 last week. This is the 3rd month in a row I’ve sold the puts at the $19 strike. I’m considering doing this with MSFT as well.

      Regards, Troy

      • Rich said

        Troy,

        INTC has been trading in a pretty tight range the last few weeks with a slight upward trend. I have been trying to be careful and selling a little farther OTM. You never know when the market will have one of those 200 point drops and you gotta feel that the market is a little overbought right now. I have also been trying to keep a little more cash on hand to take advantage of those big drop days. I saw on the news last week where INTEL was planning on building a new plant out west. They are one of the few DOW stocks with bare cash on hand. I would like to see them raise their dividend though. I think your Nov 19 puts should be safe but as Teddi says, when selling puts, you have a lot more control over avoiding assignment than when selling covered calls. I plan on milking premiums out of INTC for a long time.

        Rich

  5. Rich said

    INTEL has moved up steadily over the past six trading sessions. This morning I bought back my 5 Nov 18 puts @ .07 and sold 3 Jan 19 puts @ .59 for a net credit of $123.00 This also frees up $3600 in capitol. Although we would all like to see the market continue to trend higher I have a feeling that we may be a little overbought right now and any little bit of negative news will cause one of those 200 point drops in the DJI. If that should occour I want to have cash on hand to take advantage of it.

    Rich

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