The Money Tree

Safely Generating Income in Retirement

Posts Tagged ‘V’

FEB Expiration – Results

Posted by mounddweller on February 21, 2011

Fellow Traders,

Just a quick post to update everyone on my trades that closed at expiration on Friday.  I had a number of NP trades  that closed OTM.  They are as follows:

As you can see one mistake can do a heck of a lot of damage to what otherwise was a good month.  So, lesson learned.  STICK TO YOUR GAMEPLAN!



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Update – Visa (V) Trade

Posted by mounddweller on December 27, 2010


I took advantage of the jump in Visa (V) today by BTC my JAN $65 puts and STO JAN $67.5 puts for a net credit of $0.45/share.

Originally, back on 12/17, I had sold the JAN $65 puts at $1.75.  Holding these to expiration would have generated a ROIC of 2.61% with a holding period of 36 days.  Today, with V jumping back above $70, I saw the opportunity to increase my ROIC with very little additional risk.  The additional $0.45/share will increase my ROIC from 2.61% to 3.09%.   If, at expiration, I choose to have the stock put to me at $67.50 I will own 200 shares of Visa at a cost basis of $65.46.

Finally, a quick plug for my broker, Charles Schwab.  I entered my trade today as ‘All or None’.   However, the floor trader at the CBOE failed to notice this and only executed one of my two outstanding contracts.  I call Schwab and they contacted the CBOE on my behalf.  Schwab made sure my other contracts were executed at my previously set net credit price (even though the market had moved away from a net credit of $0.45 down to $0.41).  Scwab then called me back to tell me everything had been taken care of and to ensure I was happy with the execution.



Posted in Portfolio Updates | Tagged: , | 2 Comments »