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Archive for October 6th, 2011

Weekly NP Strategy – OCT14 Exp

Posted by mounddweller on October 6, 2011

Fellow Traders,

Once again the market has exhibited its schizophrenic behavior.  After dropping sharply it has once again jumped up above 11,000.  Consequently, I am hesitant to recommend anything from the weekly NP selections this week for fear it will drop right back down again next week.  In this environment it is better to sell puts on a huge down day.  Thus, here’s what I’m planning to do.  If tomorrow is a down day I may consider some of the blue-chip names on the list.  I’d really like to sell some puts tomorrow because Monday is a holiday and the market will be closed.  That gives us one less day of exposure before expiration next Friday.  If tomorrow is an up day I’ll likely write this week off and look ahead to the last week of the monthly expiration cycle.

Here are the blue-chippers from the list that I’ll be keeping an eye on:

CSCO  – stock seems to have found a bottom.  Would look to sell the $15s.

INTC – doubtful it will fall enough to generate any meaningful premium on the $20s.  Not interested in selling puts at $21 or higher

BP – Would be interested in selling the $34s if BP sold off again.

HPQ – Might consider the $22s if the price was right.

That’s about it folks.  Even though 197 trades meet our selection criteria there isn’t much that appeals to me in this market.  I have posted the complete list of possible trades out on the Yahoo Weekly Options group board.  You can find it here: http://finance.groups.yahoo.com/group/weeklyoptions/files/

Regards,

Troy

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