The Money Tree

Safely Generating Income in Retirement

Archive for February 16th, 2012

Weekly Put Option Strategy – 02/24 Expiration

Posted by mounddweller on February 16, 2012

Fellow Traders,

This week 73 trades met our Weekly NP Strategy selection criteria.  A spreadsheet containing all 73 possible trades can be found here:

Of the 73 possible trades I ran across two that I would be interested in looking into further.

(1) Alpha Natural Resources $19 strike price on stock that closed today at $20.90.  Premium is $0.23.  ANR reports quarterly earnings before the bell on expiration day, 2/24.  Seems to me all of the bad news may already be priced into this stock.  Thus, even with a poor earnings announcement it might not fall much further, or it could actually rise on bad news.

(2) Petroleo Brasil SA Petrobras (PBR).  As you know I just got out of a multi-month position in PBR.  So why would I want to reenter it?  Well, mainly because it has come down a little bit off its recent highs of around $32 despite oil going up.  Today it closed at $29.34.  The $28 put trades at $0.16.  I think PBR has some support at $28 so this might not too risky a trade.

Check out the 71 other trades.  Let me know if you see one you like.  There are several well-known large-caps on the list this week.  Most, if not all, report earnings in the coming week.





Posted in Weekly NP Strategy | Tagged: , , | 2 Comments »