The Money Tree

Safely Generating Income in Retirement

Weekly NP Strategy – JAN 6 Expiration

Posted by mounddweller on December 30, 2011

Fellow Traders,

Our weekly NP Strategy screen identified 47 possible trades with a January 6 expiration.  Of these I found two that I think are worthy of your consideration.  They are trades in Abercrombie & Fitch Co (ANF) and Cleveland-Cliffs Inc Co. (CLF).

Here are the specifics for the two trades.  I’m late in getting this posted so the bid prices may no longer be accurate.  Be sure to double check prices if you decide to execute either one of these trades.

(1) ANF at $48.74 sell the $46 strike at $0.34 for 0.69% ROIC (36.37% annualized) with 6.32% DSP

(2) CLF at $62.39 sell the $57.50 strike at $0.31 for 0.54% ROIC (28.11% annualized) with 8.33% DSP.

Note: for the more adventurous among you, CLF also has a good trade at the $60 strike.  This is right at recent support levels.

Happy New Year!

Regards,

Troy

 

 

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