I know it's been awhile since I posted. I've been busy at work, play and with family. In any event I closed the following transaction for a profit:
09/05/12 STO 3 COP Oct 20 50 Puts @.38 $101.73
10/02/12 BTC 3 COP Oct 20 50 Puts @.04 -12.06
In this trade I made $89.67 in 26 days on ~$1500 in margin maintenance. This equates to a return on maintenance of 5.98% or 83.95% annual. I closed the trade for a profit without paying a commission.
I've got other trades to report and I'll try to post once a day for a while and get back in the swing of things.
Showing posts with label Conoco Phillips. Show all posts
Showing posts with label Conoco Phillips. Show all posts
Thursday, November 1, 2012
Wednesday, September 5, 2012
New Trade: ConocoPhillips (COP) Naked Puts
Today when the Dow was down less than 1% and COP had sunk to ~54.80 I entered into the following transaction:
09/05/12 STO 3 COP Oct 20 50 Puts @.38 $101.73
ConocoPhillips is a rising dividend, blue chip, oil & gas company. I have been waiting for it to show some weakness, i.e., drop below 55, as I love it's yield as a buoy for the stock price. Today I got my wish although I must admit that the lack of news was a bit disconcerting. Hopefully there are not problems brewing behind closed doors.
This is a 45 day trade that uses ~$1600 in margin maintenance. If the puts expire worthless I will earn 6.36% return on maintenance in 45 days or 51.6% annual.
If COP were to drop below 50 and the stock was put to us our yield on cost would be a whopping 5.3%. I like this yield amount as a buoy of the stock price. If the price tanks I feel confident that I could roll down and/or out for a net credit. As such, an exit strategy is in place.
I have been enjoying writing naked puts far out of the money because the maintenance requirement is so low. This allows me to enjoy higher returns on maintenance and to commit less capital to any one trade. In addition, the downside protection is very high making this a comfortable yet probably profitable setup.
09/05/12 STO 3 COP Oct 20 50 Puts @.38 $101.73
ConocoPhillips is a rising dividend, blue chip, oil & gas company. I have been waiting for it to show some weakness, i.e., drop below 55, as I love it's yield as a buoy for the stock price. Today I got my wish although I must admit that the lack of news was a bit disconcerting. Hopefully there are not problems brewing behind closed doors.
This is a 45 day trade that uses ~$1600 in margin maintenance. If the puts expire worthless I will earn 6.36% return on maintenance in 45 days or 51.6% annual.
If COP were to drop below 50 and the stock was put to us our yield on cost would be a whopping 5.3%. I like this yield amount as a buoy of the stock price. If the price tanks I feel confident that I could roll down and/or out for a net credit. As such, an exit strategy is in place.
I have been enjoying writing naked puts far out of the money because the maintenance requirement is so low. This allows me to enjoy higher returns on maintenance and to commit less capital to any one trade. In addition, the downside protection is very high making this a comfortable yet probably profitable setup.
Friday, February 17, 2012
Profitable Trade: Conoco Phillips (COP) Covered Calls
Yesterday in a traditional IRA I earned a profit in the following transaction:
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
01/20/2012 BTC 2 COP Jan 21 2012 70 Calls @.77 -165.52
01/20/2012 STO 2 COP Jan 27 2012 70 Calls @1.35 +258.45
01/30/2012 STO 2 COP Feb 18 2012 70 Calls @.58 +104.47
02/16/2012 Sold 200 COP @ 70 13979.75
We made $295.65 when these shares were assigned. We held the shares for 34 days. Our rate of return was 2.1% which equates to 22.54% annual.
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
01/20/2012 BTC 2 COP Jan 21 2012 70 Calls @.77 -165.52
01/20/2012 STO 2 COP Jan 27 2012 70 Calls @1.35 +258.45
01/30/2012 STO 2 COP Feb 18 2012 70 Calls @.58 +104.47
02/16/2012 Sold 200 COP @ 70 13979.75
We made $295.65 when these shares were assigned. We held the shares for 34 days. Our rate of return was 2.1% which equates to 22.54% annual.
Tuesday, January 24, 2012
Recent Trade Thoughts
I usually enter into new investments when the market is down and investors are fearful. For the last couple of weeks those times have been rare. I'm a patient person and I've learned to let the market come to me. There are some traders who I respect greatly, i.e., Bill Cara, who are bullish on the markets.
So why did I enter some trades when the market has been bullish? I didn't want to have the train leave the station with me standing on the platform. In any event, I only entered into some conservative out of the money put plays on stocks I would love to own. These were Coca-Cola, Proctor & Gamble and Johnson & Johnson. If put to me the yield on cost would be well above average. In addition, some of these are set to raise their dividends. I also entered into a covered call transaction on Conoco-Phillips. I like this one as they are going to spin off shares and are set to raise the dividend. It also diversifies us into oil and gas.
I've also been trading the precious metals which bottomed a couple of weeks ago. Now that they are back in their bullish trend I'm losing a bit of interest going forward. I'm looking for dips preferably large ones where folks are talking about precious metals cratering.
I think that GOOG may be providing a good opportunity for out of the money put writing, especially 30 or 40 points below where it's trading right now. I probably won't participate, however, as it violates my rule of only trading something I really want to own.
Other than these trades I think it's time to wait for a correction. Obvious opportunities should appear. I've got a ton of cash and margin to work with. With my recent trades I just took a little nibble in case we are off to new highs.
So why did I enter some trades when the market has been bullish? I didn't want to have the train leave the station with me standing on the platform. In any event, I only entered into some conservative out of the money put plays on stocks I would love to own. These were Coca-Cola, Proctor & Gamble and Johnson & Johnson. If put to me the yield on cost would be well above average. In addition, some of these are set to raise their dividends. I also entered into a covered call transaction on Conoco-Phillips. I like this one as they are going to spin off shares and are set to raise the dividend. It also diversifies us into oil and gas.
I've also been trading the precious metals which bottomed a couple of weeks ago. Now that they are back in their bullish trend I'm losing a bit of interest going forward. I'm looking for dips preferably large ones where folks are talking about precious metals cratering.
I think that GOOG may be providing a good opportunity for out of the money put writing, especially 30 or 40 points below where it's trading right now. I probably won't participate, however, as it violates my rule of only trading something I really want to own.
Other than these trades I think it's time to wait for a correction. Obvious opportunities should appear. I've got a ton of cash and margin to work with. With my recent trades I just took a little nibble in case we are off to new highs.
Friday, January 20, 2012
Trade Continuation: Conoco Phillips (COP) Covered Calls
Today in a taxable account I continued the following transaction:
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
01/20/2012 BTC 2 COP Jan 21 2012 70 Calls @.77 -165.52
01/20/2012 STO 2 COP Jan 27 2012 70 Calls @1.35 +258.45
We rolled the covered call for a net credit of $92.93. This lowers our out of pocket to $13788.57 or $68.94/share. If we get called away we will make $190.43 in 2 weeks. This equates to a return of 1.4% or 35.9% annual. Before we get exercised we will look to roll the options again with an eye on the weeklys.
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
01/20/2012 BTC 2 COP Jan 21 2012 70 Calls @.77 -165.52
01/20/2012 STO 2 COP Jan 27 2012 70 Calls @1.35 +258.45
We rolled the covered call for a net credit of $92.93. This lowers our out of pocket to $13788.57 or $68.94/share. If we get called away we will make $190.43 in 2 weeks. This equates to a return of 1.4% or 35.9% annual. Before we get exercised we will look to roll the options again with an eye on the weeklys.
Friday, January 13, 2012
New Trade: Conoco-Phillips (COP) Covered Call
Today in a traditional IRA I entered into the following transaction:
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
Our out of pocket on this transaction is $13881.50 or $69.41/share. There are only 4 market days until options expiry. If this is called away it will provide a return of $100 in 7 days or .007% which equates to 36.4% annual. This is an issue we like long term and there is a good chance we'll roll this position. There will be a spin-off company later in the year as well as a dividend raise in the next quarter.
01/13/2012 Bought 200 COP @ 70.29 -14,067.97
01/13/2012 STO 2 COP Jan 21 2012 70 Calls @.99 186.47
Our out of pocket on this transaction is $13881.50 or $69.41/share. There are only 4 market days until options expiry. If this is called away it will provide a return of $100 in 7 days or .007% which equates to 36.4% annual. This is an issue we like long term and there is a good chance we'll roll this position. There will be a spin-off company later in the year as well as a dividend raise in the next quarter.
Thursday, January 12, 2012
Profitable Trade: SLV Naked Puts
Yesterday in a taxable account I closed the following transaction:
12/22/2011 STO 8 SLV Dec 30 2011 26 Puts @.09 55.94
12/29/2011 BTC 8 SLV Dec 30 2011 26 Puts @.38 -320.05
12/29/2011 STO 8 SLV Jan 21 2012 25 Puts @.7 +553.88
01/11/2012 BTC 8 SLV Jan 21 2012 25 Puts @.04 -32.10
This trade netted $257.67 in 19 days on ~ $2200 in margin. That is a return on margin of 11.71% or 224.95%. It also allowed me to exceed my goal of making 2 - 3% a month by writing naked puts on margin in this little account. I didn't milk the last $32 of the trade so I could possibly take advantage of the new weekly options that come out today. If one can enter into weekly option trade on Thursday or Friday, studies have shown that over the weekend there is ~ 30% drop due to time decay.
I should note that with the money I've made in this account through recent trades I am able to add to my holdings in my core dividend growth portfolio. Every time I earn $1000 I add to my holdings. Today I added 14 shares of Conoco-Phillips at 71.62. The yield is 3.67% and they are set to raise the dividend next time around. I like the idea of the company splitting and spinning off shares my way. I look at this as another little boat set to sail that will compound over time and bring me passive income.
12/22/2011 STO 8 SLV Dec 30 2011 26 Puts @.09 55.94
12/29/2011 BTC 8 SLV Dec 30 2011 26 Puts @.38 -320.05
12/29/2011 STO 8 SLV Jan 21 2012 25 Puts @.7 +553.88
01/11/2012 BTC 8 SLV Jan 21 2012 25 Puts @.04 -32.10
This trade netted $257.67 in 19 days on ~ $2200 in margin. That is a return on margin of 11.71% or 224.95%. It also allowed me to exceed my goal of making 2 - 3% a month by writing naked puts on margin in this little account. I didn't milk the last $32 of the trade so I could possibly take advantage of the new weekly options that come out today. If one can enter into weekly option trade on Thursday or Friday, studies have shown that over the weekend there is ~ 30% drop due to time decay.
I should note that with the money I've made in this account through recent trades I am able to add to my holdings in my core dividend growth portfolio. Every time I earn $1000 I add to my holdings. Today I added 14 shares of Conoco-Phillips at 71.62. The yield is 3.67% and they are set to raise the dividend next time around. I like the idea of the company splitting and spinning off shares my way. I look at this as another little boat set to sail that will compound over time and bring me passive income.
Tuesday, December 27, 2011
Profitable Trade: Conoco-Phillips (COP) Put
Today I closed out the following transaction in a taxable account:
11/25/2011 STO 1 COP Jan 21 2012 60 Put @ 1.30 +119.23
12/27/2011 BTC 1 COP Jan 21 2012 60 Put @ .05 -5.02
We didn't fight for that last nickel and we reached the point where we could close without commissions. We made $114.21 in 31 days. This is a return of 1.9% or 22.37% annual. If one were to calculate return on margin which was $781.84 then we have a return of 14.6% or 171.9% annual. The latter returns are sought to be exploited in the book I recommended called Selling Put Options My Way.
We continue to close positions when fear is at a minimum and we await the fear to return, loaded up with cash, so we can enter new positions.
11/25/2011 STO 1 COP Jan 21 2012 60 Put @ 1.30 +119.23
12/27/2011 BTC 1 COP Jan 21 2012 60 Put @ .05 -5.02
We didn't fight for that last nickel and we reached the point where we could close without commissions. We made $114.21 in 31 days. This is a return of 1.9% or 22.37% annual. If one were to calculate return on margin which was $781.84 then we have a return of 14.6% or 171.9% annual. The latter returns are sought to be exploited in the book I recommended called Selling Put Options My Way.
We continue to close positions when fear is at a minimum and we await the fear to return, loaded up with cash, so we can enter new positions.
Friday, November 25, 2011
Sold Conoco Phillips (COP) Put
Today with the market up a smidgen and COP trading at ~66.95 I entered into the following transaction in a taxable account:
STO 1 COP Jan 21 2012 60 Put @ 1.30 +119.23
Conoco Phillips has a rising dividend and is a stock I'm interested in holding long term. It is a Buffett favorite. In reading the charts, like a psychic reads tea leaves...ha, it is revealed to me that every time COP has hit 60 in the last year it immediately found support and jumped up like a prairie dog sittin' on a cactus. If assigned to us we'll take COP at ~ 59 which will at that price yield 4.5%. In addition, COP will probably raise it's dividend next quarter. If the put expires worthless we will earn 2% in 57 days which equates to 12.8% annual. If one were to believe in return on margin (ROM) the return on a $781.84 margin requirement is 15.2% or 98% annual.
All the puts I've sold lately are at the very bottom of the last year's trading range. At this point in my trading experience that's about the best I can do. If these stocks fall below the strike prices, we can: 1) accept the stocks and collect dividends and write calls; or 2) roll them out for a credit. Either way they won't have heard the last from this gal! ha!
STO 1 COP Jan 21 2012 60 Put @ 1.30 +119.23
Conoco Phillips has a rising dividend and is a stock I'm interested in holding long term. It is a Buffett favorite. In reading the charts, like a psychic reads tea leaves...ha, it is revealed to me that every time COP has hit 60 in the last year it immediately found support and jumped up like a prairie dog sittin' on a cactus. If assigned to us we'll take COP at ~ 59 which will at that price yield 4.5%. In addition, COP will probably raise it's dividend next quarter. If the put expires worthless we will earn 2% in 57 days which equates to 12.8% annual. If one were to believe in return on margin (ROM) the return on a $781.84 margin requirement is 15.2% or 98% annual.
All the puts I've sold lately are at the very bottom of the last year's trading range. At this point in my trading experience that's about the best I can do. If these stocks fall below the strike prices, we can: 1) accept the stocks and collect dividends and write calls; or 2) roll them out for a credit. Either way they won't have heard the last from this gal! ha!
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