The Money Tree

Safely Generating Income in Retirement

What Others are Trading – OCT 2011

Posted by mounddweller on October 1, 2011

Fellow Traders,

Let’s hear what trades you’ve recently made or are considering.  Just add a comment to this post.

Regards,

Troy

 

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4 Responses to “What Others are Trading – OCT 2011”

  1. Rich said

    I’ve decided to try trading weekly put options. This morning I sold to open 1 AA 9 put that will expire this friday, Oct 7. I sold it @ .18 and after commission cost netted $9.75. That would be a 1.08% ROC if AA closes above 9 on friday. However, instead of rolling my puts when the option is in the money I will accept assignment and the following week sell an in the money or near the money covered call to expire the next week if possible. If I have to go out to the near month expiration I will look at selling an at the money covered call.

    I only wrote one contract, want to test the waters for awhile. I have 3 INTC Oct 20 puts due to expire in a few weeks. Depending on where INTEL closes on Oct expiry will determine if I try to roll or let the contracts be assigned. If they expire I will use that cash to sell weekly puts on INTC

    AA closed below 9 today so I am already looking at the possibility of assignment. Need to wear a rally cap this week.

    Rich

  2. Rich said

    shares of Alcoa have been selling off since the beginning of April. Since then I have been rolling my cash secured puts forward, always for a net credit. The global economy has not been good for Alcoa as evidenced by the Q3 results posted yesterday. shares of AA are down this morning on above average volume. I decided it was time to start taking some losses on my account. I don’t feel like I can “kick the can” down the road any longer. So, for the first time, I will start taking some debits over the next few months and get my puts more in line with how the shares of AA are trading.

    This morning I bought to close 2 Oct 15 puts @ 5.05 then sold to open 1 Nov 15 put @ 5.07 and 1 Apr 14 put @ 4.34
    This resulted in a net debit of $81.

    My YTD ROC is now just over 7%

    Rich

    • Rich said

      My 14 Oct weekly AA 9 put expired out of the money yesterday. AA bounced back nicely after disapointing earnings reported on Oct 11. I think the market must have been expecting that so AA recovered quickly as the market continued its recent trend up. If we get a pull back early in the week which could give me at least a .5 % return for the week I may sell another weekly 9 put. However I did sell a weekly BAC 6 put for a nice 1.45% ROC. Just couldn’t pass on the return so took a little risk. If it should end the week in the money I’ll sell weekly call at 5 to get out of the trade fast.

      Rich

  3. Rich said

    I had 3 Oct 20 INTC puts expire out of the money yesterday. This will make $6000 available in my account to write cash secured put options against.

    my INTEL scorecard now has a 22 month return of over 35% which averages out to an annualized 19%

    this return is a combination of premiums from both puts, calls and cash from dividends on 100 shares of INTEL on which my cost basis is less than zero at present.

    Rich

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