The Money Tree

Safely Generating Income in Retirement

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: http://finance.groups.yahoo.com/group/CoveredCalls-NakedPuts_OptionStrategies/files/.

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.

Regards,

Troy

 

 

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2 Responses to “Weekly Put Option Strategy – 02/24 Expiration”

  1. Rich said

    Troy,

    I have a FEB 20 put in play now. I sold the put back on February 3 @ .30 I figured a 1% ROC for just two weeks was pretty good. I’m watching it close today. If I have to roll it I would go down to the Mar 19 strike.

    Rich

    • Rich said

      I went ahead and rolled my FEB 20 put out and down to a Mar 19. I bought back the FEB 20 @ .03 and sold the Mar 19 @ .90

      the weather was great here today. I was working in the garden and everytime I checked on ANR it kept moving down all day. I finally said to heck with it and rolled my put. It was too nice of a day to sit in front of my computer all afternoon. So if ANR can close above 19 on March expire I will have a ROC of just over 5% for this scorecard for about six weeks at risk.

      Rich

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