The Money Tree

Safely Generating Income in Retirement

Deep OTM NP Strategy – APR Week 1

Posted by mounddweller on April 9, 2011

Fellow Traders,

Bad news!  Not a single new trade met our selection criteria this week.  That hasn’t happened before.  I suspect the culprit is the low amount of volatility in the market as measured by the VIX.  It closed Friday at 17.87.

While there weren’t any new selections a number of stocks from earlier selections this month did reappear.  The one that most interested me was RMBS.  It closed Friday at $19.35.  The APR $17 put has a bid price of $0.11.  Thus, with only 5 DTE you can get a 0.65% ROIC with 12.7% DSP.

If the bid price holds up at the open on Monday and I can sell for $0.11 I may sell a few of these.

Regards,

Troy

Advertisements

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: