The Money Tree

Safely Generating Income in Retirement

Posts Tagged ‘ANF’

Weekly NP Strategy – 050412 Expiration

Posted by mounddweller on April 26, 2012

Fellow Traders,

I’ve got 2 out of 81 possible trades for your consideration this week.  They are ANF and APC.  I’ve suggested ANF previously with mixed results.  I believe once it finished ITM but was an easy work out by selling the next month’s ATM covered call.  This week the $48 put looks good with 5.68% DSP and 0.79% ROIC.

I also like the looks of APC.  However, caution is advised with it because it announces 1st quarter earnings next week.  The $70 put has 6.11% DSP and 0.56% ROIC.

The other 79 trades meeting our screen criteria can be found here:




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Weekly NP Strategy – MAR 9 Exp.

Posted by mounddweller on March 1, 2012

Fellow Traders,

My apologies, It’s been hit or miss the past few weeks with me posting the Weekly NP Strategy selections.  But, this week, I’m back with another round of trades for you to consider.

It was pretty slim pickin’s this week.  Only 33 trades met our 5% DSP and 0.5% ROIC selection criteria.  Of those only 2 caught my eye as good possibilities.

First up is Abercrombie & Fitch (ANF).  This isn’t the first time it has shown up on our Weekly NP Strategy screen.  This week its the $45 strike price we’re interested in.  The stock closed today at $47.33 and the $45 put has a bid premium of $0.33.  This gives us a 0.73% ROIC with 5.62% DSP.  ANF has a 52-wk low of $40.25 which it hit exactly one month ago.  Looking at the 1-yr chart you’ll see ANF has solid support at $45.  It bounced off this level several times over the past few months before finally succumbing to the repeated pressure in early February.

My second selection this week is a trade very similar to the one I made earlier this week.  It involves the ETN, VXX.  You may recall VXX tracks the performance of the volatility index VIX.  Earlier this week I placed a trade selling the regular MAR monthly expiration puts at the $22 strike.  The weeklies at the same strike also look like a good trade.  The MAR 9 $22 put has a bid premium of $0.22.  The ETN closed today at $24.14 giving us a 1.00% ROIC with 9.78% DSP.  While VXX has a 52-wk low of $19.88, it hasn’t closed below $23 in several months.

Well, there you have it.  Just two trades this week, but both I think are worthy of your time and further due diligence.



PS.  Oops, almost forgot.  If you want to see the other 31 trades you can find them here:


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Weekly NP Strategy – FEB 10 Exp.

Posted by mounddweller on February 2, 2012

Fellow Traders,

I have posted the screener results for the Weekly NP Strategy here:  There were 65 trades meeting the selection criteria this week.  Unfortunately none of them appealed to me.  However, since we all have different objectives and risk tolerances they are there for you to check out.

I really stepped in it with my pick of ANF last week.  The company pre-announced an earnings short-fall today and the stock fell hard, dropping $6.73 to $40.40.  That is well below the $44 strike price which showed up in our screener results last week.

Folks who placed this trade now have 3 choices:

(1) BTC at a loss and walk away knowing you can’t win every trade, or

(2) Roll-out the puts to the regular MAR expiration or another month even further out.  Today, the FEB03 $44 puts closed at $3.60 and the MAR $44 puts were at $4.65.  This would give you about $1 net credit, about 2.25% for a month.

(3) Accept assignment and sell OTM calls at the $44 strike price.  The MAR $44 calls are at $0.88 bid.  The MAY $44 calls are at $2.13 bid.

I’m not very fond of #1.  ANF is a good company and will eventually recover.  I would select either #2 or #3.




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Weekly NP Strategy – FEB 3 Expiration

Posted by mounddweller on January 26, 2012

Fellow Traders,

After a two-week hiatus I’m back with another round of weekly options.  Quite honestly I had lost some motivation to publish the list because it seemed to be producing the same results each week for several weeks in succession.

This week, however, the list has produced some names we have not seen previously or at least not in a while.  You can see this list here:

The list this week contains 73 possible trades.  Of these one stood “head and shoulders” in my mind above the rest.  That is ANF at the $44 strike price.  It is priced at $0.44 bid.  That gives you a 1% ROIC with 8 days to expiration.  ANF is a solid company.  However, investor sentiment has turned against it.  It is trading very near 52-wk lows.  The company has yet to announce its quarterly earnings.  This may be driving the high premium.  However, ANF isn’t scheduled to release its earnings until February 13 which is well after our expiration on February 3.

Check it out!







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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!





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