The Money Tree

Safely Generating Income in Retirement

Archive for November 12th, 2011

Weekly NP Strategy – NOV 11 Exp. Results

Posted by mounddweller on November 12, 2011

Fellow Traders,

You’ll recall last week I highlighted 5 of the 142 trades which met our NP Strategy selection criteria.  Below are the ticker symbols, strike prices, and yesterday’s closing price for each of the 5 trades.

AA  $10.00  $10.60

CSCO $17.00  $19.02

FCX  $36.00  $39.86

HPQ  $25.00  $27.58

WMB  $29.00  $31.34

As you can see all 5 of the trades I selected finished OTM.  Thus far since I started sharing my Weekly NP Strategy selections I don’t think a single one of my highlighted trades has finished ITM.  Now if I could only feel as confident as my record suggests I should.  I find it very hard to enter these positions.  I always find something to use to talk myself out of making the trade.

I hope everyone has a great week.  I want to let everyone know I’ve decided not to run the Weekly NP Strategy on the week before option expiration each month.  There are no true weekly options this week.  They simply are the regular options which expire on Saturday.





Posted in Weekly NP Strategy | Tagged: , , , , , | Leave a Comment »

Deep OTM NP Strategy – NOV Week 1

Posted by mounddweller on November 12, 2011

Fellow Traders,

Below are the selections which meet the criteria for Week 1 of our Deep OTM NP Strategy.  For newer readers and others who may have forgotten let me remind you that our Week 1 criteria is simply NPs with at least 10% down side protection (DSP) and a Put Factor (PF) of at least 2.0 or higher.

As you can see, as is usually the case this late in the monthly expiration calendar, it is pretty slim pickings.  So much so that I couldn’t find a single one that I would be comfortable owning.  What held me back from highlighting any of these as a possible trade is the fact that all of them except SIRI all report earnings this week.

If I had to choose at least one I think I would go with NTAP.  Networking stocks have done relatively well in the 3rd quarter.  Thus, odds would be in our favor that NTAP will at least match earnings expectations.  Also, NTAP has the strongest balance sheet of the stocks on our list.  It has a net cash position (cash net of debt) of $9.36 / share.

Well, that’s all I have to report for this week.  Best of luck to everone in the final week before expiration.



Posted in Deep OTM NP Strategy | Tagged: , , , , , , , , | Leave a Comment »