The Money Tree

Safely Generating Income in Retirement

What Others Are Trading – December 2010

Posted by mounddweller on December 3, 2010

All,

Sorry for the delay in getting this message posted.  I see dealmakr posted a couple messages about his recent trades under my MYGN trade.  Any other trades out there folks want to share?  Here’s your opportunity.  Just post a comment to this message.

Regards,

Troy

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14 Responses to “What Others Are Trading – December 2010”

  1. Irene S. said

    C Citigroup – ( using ditm calls as in book “getting back to even”
    Bought 10 Nov 3.00 calls @ .91 stock was 3.88 on sep 23rd (949.95)
    Bought 10 more @ .87 stock was 3.845 Sep 28th (889.95)
    Sold 20 calls @ .99 stock at 3.98 oct 1st (1950.05)
    Profit 130.15 average 5.5 days
    ………….
    Bought 19 dec 3.00 calls @ 1.07 stock 4.04(just dropped .21) oct 14th $2061.95
    Sold @ 1.16 Oct 18th stock 4.15? $2175.05
    Profit 113.10 4 days
    ……………
    bought 23 5.00 Dec **PUTS** @ .86 oct 18 $2010.95 stock was 4.18
    Sold **Puts** @ .94 Oct 19 Stock 4.08 $2129.05
    Profit 118.10 1 day
    …………..
    bought 20 $3.00 dec calls @ 1.08 2189.95 stock 4.05 Oct 21st
    sold @ 1.16 stock 4.14 oct 22
    profit 100.10 1 day
    ……..
    bought 30 jan 2011 $2.50 calls @ 1.62 stock 4.11 nov 23rd for 4899.95
    sold 30 @ 1.80 Dec 1 stock 4.29 5360.05
    profit 460.10 8 days
    ……………..

    Irene
    profit 921.55 in five deals, book cost $21

    • Rich said

      Way to go Irene! Looks like you are doing great buying and selling calls and puts. I’ve always had bad luck doing this. Thats why I stick to selling puts

      Rich

      • Irene S. said

        I always had bad luck too. Of course I use to buy them atm insead of deep itm.
        But I try to have 60 days before expiry and will sell on a small profit, even though a few hours or days later I often could have doubled the profit. Great way to control a lot more shares compared to buying the shares outright. But we all know the risks.
        Irene

  2. Rich said

    Troy, I hadn’t posted any Nov trades, did not see the Nov update until today. thought you were waiting till after the first of the year when you roll out your new strategy. Anyway, here are some updates from my INTEL Scorecard:

    11/01 BTC 1 Jan 24 put @ 3.78 and STO 1 Jul 23 put @ 3.66 ( rolled down for a net debit)
    11/01 STO 1 FEB 18 put @ .44 to cover the above debit ( resulted in a net credit)

    11/08 STO 1 Apr 18 put @ .44

    11/11 BTC 3 DEC 19 puts and STO 2 Jan 19 puts for a small credit. ( this freed up $1900 cash )

    11/12 BTC 1 Apr 22 put @ 1.72 and STO 2 Apr 21 puts @ 1.215 ( used cash from above trade to roll this option down and get a credit )

    NOTE: I have been trying to emulate what Teddi does on her INTEL scorecard. Rolling down for small credits when I can.

    Rich

  3. Rich said

    12/01 BTC my DEC 21 covered call @ .68 and rolled it forward to a Jan 21 covered call @ 1.04 for a net credit. I did not want my shares call away. Should pick up the Dec dividend soon. I paid 20.83 for the shares back in January and have now accumulated almost $1827 in premiums on this scorecard. My net cost for the stock is now down to $2.56. In a few months I will have the total cost of the stock covered. Kind of like buying stock using others peoples money. I love the strategy of selling puts for premiums!

    • mounddweller said

      Rich,

      You didn’t mention which stock this trade was associated with. Was it INTC? Regardless of what stock it is, this is an amazing accomplishment. To work your cost basis down from $20.83 to $2.56 in under a year is awesome. If you don’t mind, send me your complete transaction history for this trade, I’d love to learn from it!

      Regards,
      Troy

      • Rich said

        Troy, yes this is my INTC scorecard. Awhile back I had a spread sheet that I was able to copy and paste to your blog. I’ll try and update it and post it here.

        Rich

    • hank said

      Wow, amazing trading to reduce your trading cost from 20.83 to 2.56.
      I also would like to see the actual trades for education.
      Thanks.
      Hank

  4. Rich said

    Troy & Hank,

    Here is a history of my INTEL trades. When copying and pasteing the excel spreadsheet not all info lines up but each line is complete. Nothing really special about this. I’m trying to take Teddi’s advice and concentrat my capitol on just this one stock (in this account) and just keep plugging away selling puts and rolling forward and down for net credits as often as possible. Goal is to generate income and reduce cost of stock as much as possible. The overall return is low now because I only within the last few months began to concentrate my cash to this one stock after Teddi explained how she got started building wealth. The return should increase as I work my puts throughout 2011. See below:

    Rich

    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
    7/6/2010 $38.50 rolled Jul 19 put to Aug 19 put
    7/14/2010 $70.50 rolled Jul 21 covered call to Oct 21 covered call
    8/11/2010 ($47.50) bought to close 2 Aug 19 puts
    8/11/2010 $165.50 sold to open 2 Oct 19 puts
    8/23/2010 $108.00 sold to open 4 Oct 17 puts
    8/26/2010 ($590.25) buy to close Oct 24 put
    8/26/2010 $601.75 sell to open Jan 24 put
    8/30/2010 ($291.50) buy to close 2 Oct 19
    8/30/2010 $401.50 sell to open 2 Apr 18
    9/1/2010 $15.00 received dividend on 100 shares
    10/4/2010 ($389.25) BTC Oct 23 put and rolled to Apr 23
    10/4/2010 $440.75 STO Apr 23 put
    10/7/2010 ($271.25) BTC Oct 22 and rolled to Apr 22
    10/7/2010 $342.75 STO Apr 22 put
    10/7/2010 $21.75 STO 1 Nov 18 put @ .30
    10/18/2010 $64.00 STO 4 Nov 18 @ .19
    10/21/2010 $10.75 STO 1 DEC 21 covered call @ .19
    10/27/2010 ($24.25) BTC 1 Oct 20 put @ .16
    10/27/2010 $75.75 STO 1 Apr 18 put @ .77
    10/27/2010 $94.25 STO 3 DEC 19 puts @ .35
    10/28/2010 ($41.25) BTC 5 Nov 18 puts @ .07
    10/28/2010 $106.50 STO 2 Jan 19 puts @ .58
    10/28/2010 $57.75 STO 1 Jan 19 puts @ .59
    11/1/2010 ($386.25) BTC 1 Jan 24 put @ 3.78
    11/1/2010 $364.75 STO 1 JUL 23 put @ 3.66
    11/1/2010 $42.75 STO 1 FEB 18 put @ .44 to cover net debit from above roll down
    11/8/2010 $35.75 STO 1 APR 18 put @ .44
    11/11/2010 ($33.75) BTC 1 DEC 19 put @ .10
    11/11/2010 $42.50 STO 1 Jan 19 put @ .26
    11/12/2010 ($173.25) BTC 1 Apr 22 put @ 1.72
    11/12/2010 $233.50 STO 2 Apr 21 puts @ 1.215
    12/1/2010 ($69.25) BTC 1 DEC 21 covered call @ .68
    12/1/2010 $95.75 STO 1 Jan 21 covered call @ .104

    12/4/10 $1,867.25 cash received from premiums & dividends
    12/4/10 $27,317.00 capitol at risk
    12/4/10 6.84% overall percent gain on scorecard

    • hank said

      Rich, thanks much for this.
      Hank

      • hank said

        It looks like you started out with 100 shares and then using multiple naked puts, scaling in and out, your cost basis kept decreasing.
        You sometimes were naked up to 12 puts that would expire in different months.
        This looks like an interesting approach as long as you have the cash reserves if the stock is put to you.
        I like the strategy.

  5. Rich said

    Hank,

    I can only do cash secured puts in my accounts. Thats OK with me because I do not have a good grasp of how to manage margin. I have only been into options for about 2.5 years. I didn’t understand them and was the primary reason I stayed away. Then a friend asked me what I thought of options so I started reading a bucnh of books, visiting websites and so on. Thats how I met Troy and he introduced me to Teddi’s web site. I’ve learned a lot, most in the past year after learning about Teddi’s website. I’ve only been exclusively selling puts and some calls this past year. My capitol was spread over about 5 stocks when Teddi explained how concentrating your capitol on one stock and keep selling multiple contract puts over and over, compounding the premiums into more contracts and so on. So thats what I’m trying to do. I follow all her posts on her website and study how she manipulates her puts on the different stocks she works with. I’m trying to do the same but on a smaller scale right now. Yes I started out doing a buy write on INTEL and as luck would have it the market pulled back and INTEL started falling. Thats how I got stuck with the 22 23 and 24 strikes. Really didn’t have a handle on how to cope with that until I started studying Teddi’s spreadsheets and following her trades. Now I know to roll out and down as soon as I can, even for small credits. Anyhow, I’m starting to ramble.

    Rich

  6. Rich said

    Alcoa shares have steadily rised over the past thirty days, now trading at 14.39. This morning I took the following action:

    Bought to close 2 Jan 15 puts @ 1.04 and sold to open 2 Jul 14 puts @ 1.34 for a net credit.

    Since Dec 2009 I have achieved a 12.04% ROC by selling cash covered puts month after month.

    I do not own any shares of Alcoa, however my goal is to be able to purchase 100 shares at no cost. I should be able to accomplish this within a few months. I currently have 8 open put contracts on AA

  7. Rich said

    My Money Tree updates:

    Last friday I had a Dec 13 AA cash covered put expire OTM as well as a Dec 10 SPWRA put.

    Took the following action today:

    1. sold to open 1 Feb 14 put on AA @ .47 I have a 13 month ROC of 12.29% on this scorecard

    2. bought to close a Mar 17 SPWRA put @ 4.20 and sold to open a Jun 16 put @ 3.65 for a net debit. Then I bought to close 2 Jan 10 puts @ .075 and sold to open 3 Feb 12 puts @ .52. This covered the net debit from the roll down and gave me a net credit on the transactions as well. My 12 month ROC for this scorecard is 11.97% Will continue to roll the multiple contract position to allow me to keep rolling the Jun 16 put down and get that contract eventually out of the money.

    Rich

    I’m hoping to increase my ROC during 2011 as the magic of compounding kicks in.

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