Yesterday these naked puts expired worthless in a taxable account:
12/28/2011 STO 7 SLV Dec 30 2011 25 Puts@.12 68.66
This was a 2 day trade on $2900 in margin maintenance. Time decay was a great
ally here. They expired worthless and we earned 2.36% or 430.7%
annual. I felt that precious metals had bottomed at the time I entered this trade.
Showing posts with label ROM. Show all posts
Showing posts with label ROM. Show all posts
Saturday, December 31, 2011
Friday, December 30, 2011
Profitable Trade: AT&T (T) Puts
Today in a taxable account I closed the following transaction:
11/21/2011 STO 2 Jan 21 2012 T 27.5 Puts @.9 168.47
12/30/2011 BTC 2 Jan 21 2012 T 27.5 Puts @.05 -10.03
In this trade we made $158.44 in 39 days. I closed it because we were down to our last nickel of profits and reached the point where we weren't charged commissions for closing. These puts were covered so our covered return was 2.98% or 27.89% annual. The margin maintenance requirement was $1059.61. If one were to calculate return on margin (ROM) the return jumps to 14.95% or 139.9% annual.
11/21/2011 STO 2 Jan 21 2012 T 27.5 Puts @.9 168.47
12/30/2011 BTC 2 Jan 21 2012 T 27.5 Puts @.05 -10.03
In this trade we made $158.44 in 39 days. I closed it because we were down to our last nickel of profits and reached the point where we weren't charged commissions for closing. These puts were covered so our covered return was 2.98% or 27.89% annual. The margin maintenance requirement was $1059.61. If one were to calculate return on margin (ROM) the return jumps to 14.95% or 139.9% annual.
New Trade: GDX Naked Puts
Today with GDX trading at ~51.70 I entered into the following transaction in a taxable account:
12/30/2011 STO 3 GDX Jan 21 2012 48 Puts @.5 137.71
I feel that precious metals just hit a bottom and will be moving back up. In any event GDX, a precious metals miners ETF, has shown great support at 50 for quite some time. Writing these at 48 give even more buffer than that. This trade expires in 22 days. The margin maintenance requirement is 2323.97. If these puts expire worthless the return on margin (ROM) is 5.92% or 98.2%.
12/30/2011 STO 3 GDX Jan 21 2012 48 Puts @.5 137.71
I feel that precious metals just hit a bottom and will be moving back up. In any event GDX, a precious metals miners ETF, has shown great support at 50 for quite some time. Writing these at 48 give even more buffer than that. This trade expires in 22 days. The margin maintenance requirement is 2323.97. If these puts expire worthless the return on margin (ROM) is 5.92% or 98.2%.
Thursday, December 29, 2011
New Trade: SLV Naked Puts
Yesterday in a taxable account with SLV at ~ 26.30 I entered into the following transaction:
12/28/2011 STO 7 SLV Dec 30 2011 25 Puts@.12 68.66
This is a 2 day trade on $2900 in margin maintenance. Time decay is a great ally here. If they expire worthless it will earn 2.36% or 430.7% annual. If silver continues to collapse I will probably roll this position.
12/28/2011 STO 7 SLV Dec 30 2011 25 Puts@.12 68.66
This is a 2 day trade on $2900 in margin maintenance. Time decay is a great ally here. If they expire worthless it will earn 2.36% or 430.7% annual. If silver continues to collapse I will probably roll this position.
Trade Continuation: SLV Naked Puts
Today with SLV down to ~ 26 I continued the following transaction in a taxable account:
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
Well silver had a nice little crash party thereby hitting the strike price of my naked puts. I could have exited the trade for a loss but I liked the setup to roll down to the 25's for a net credit of $233.83 (plus I wasn't willing to put my undefeated status on the line..ha). If these expire worthless we will make $289.92 in 30 days on $4000 of margin maintenance. That's a 7.2% return on margin (ROM) or 87.5% annual. Of course we don't have much breathing room on this trade and silver could continue it's weakness. I get the feeling that once we make it past the new year that SLV will find a bid. It's amazing that the dollar is strong but it's better than the alternative...the Euro.
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
Well silver had a nice little crash party thereby hitting the strike price of my naked puts. I could have exited the trade for a loss but I liked the setup to roll down to the 25's for a net credit of $233.83 (plus I wasn't willing to put my undefeated status on the line..ha). If these expire worthless we will make $289.92 in 30 days on $4000 of margin maintenance. That's a 7.2% return on margin (ROM) or 87.5% annual. Of course we don't have much breathing room on this trade and silver could continue it's weakness. I get the feeling that once we make it past the new year that SLV will find a bid. It's amazing that the dollar is strong but it's better than the alternative...the Euro.
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.
Thursday, December 22, 2011
New Trade: Silver ETF (SLV) Naked Puts
Today in a taxable account I entered the following short term transaction:
12/22/2011 STO 8 SLV Dec 30 2011 26 Puts @.09 55.94
This is an 8 day trade in SLV. SLV would have to drop 8.2% in 8 days for these to be in the money. If these expire worthless we will earn 2.24% on our maintenance requirement of $2496 which equates to 102.2% annual. We are bullish precious metals and are of the belief that SLV has support at present levels of 28 and change.
12/22/2011 STO 8 SLV Dec 30 2011 26 Puts @.09 55.94
This is an 8 day trade in SLV. SLV would have to drop 8.2% in 8 days for these to be in the money. If these expire worthless we will earn 2.24% on our maintenance requirement of $2496 which equates to 102.2% annual. We are bullish precious metals and are of the belief that SLV has support at present levels of 28 and change.
Tuesday, December 20, 2011
Profitable Trade: General Electric (GE) Puts
Today I closed out the following investment in a taxable account:
11/17/2011 STO 3 GE Jan 21 14 Puts @.49 134.75
12/20/2011 BTC 3 GE Jan 21 14 Puts @.05 -15.04
I closed this trade as I got down to the .05 mark where I'm not charged commissions to exit the trade. In addition I wanted to free up funds for another transaction. We made $119.71 in this transaction. This is a return of 2.94% in 33 days which equates to 32.51% annual. If one were to calculate return on margin (ROM) the returns are impressive. This investment had a low maintenance requirement of $533.24. The ROM is 22.45% or 248.31% annual. I can live with that :)
11/17/2011 STO 3 GE Jan 21 14 Puts @.49 134.75
12/20/2011 BTC 3 GE Jan 21 14 Puts @.05 -15.04
I closed this trade as I got down to the .05 mark where I'm not charged commissions to exit the trade. In addition I wanted to free up funds for another transaction. We made $119.71 in this transaction. This is a return of 2.94% in 33 days which equates to 32.51% annual. If one were to calculate return on margin (ROM) the returns are impressive. This investment had a low maintenance requirement of $533.24. The ROM is 22.45% or 248.31% annual. I can live with that :)
Saturday, December 17, 2011
Profitable Trade - Coca-Cola (KO) Puts
Today our KO puts expired worthless. The transaction was as follows:
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We earned 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We earned 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
Monday, December 12, 2011
Sold GDX Puts
Today with the DOW down 168 points to just over 12000 and GDX, the gold miners ETF, down to~ $55.50 I entered into the following transaction in a taxable account:
STO 2 GDX Jan 21 2012 52 Puts @ 1.47 +282.45
GDX has bounced off $52.50 for a year now. We are bullish precious metals and will be happy to own GDX at 50 and change. This might not be the absolute bottom but I anticipate that GDX, like the South, will rise again.
If the puts expire worthless this is a 2.7% return for 40 days or 24.7% annual. For those that give merit to return on margin (ROM) the return is a whopping 21.26% or 194% annual.
STO 2 GDX Jan 21 2012 52 Puts @ 1.47 +282.45
GDX has bounced off $52.50 for a year now. We are bullish precious metals and will be happy to own GDX at 50 and change. This might not be the absolute bottom but I anticipate that GDX, like the South, will rise again.
If the puts expire worthless this is a 2.7% return for 40 days or 24.7% annual. For those that give merit to return on margin (ROM) the return is a whopping 21.26% or 194% annual.
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!
Tuesday, November 22, 2011
Sold Microsoft (MSFT) Puts
Today in a taxable account and during amateur hour (ha!) I entered into the following transaction:
STO 4 MSFT Dec 17 2011 24 Puts@.38 +138.95
Microsoft is a cash cow and is now steadily raising it's dividend. It is also extremely heavily traded and, therefore, very liquid. It is a holding we are happy to own long term. If put to us we will have a cost basis after commissions of ~23.70/share. There has been strong support for MSFT at this level. At $23.70 our yield on cost is ~3.4%.
If the puts expire worthless our return is 1.45% for 25 days which equates to 21.17% annual. If one were to calculate return on margin (ROM) our return on a margin requirement of $1744.91 is 8% which equates to 115% annual.
I've entered into several transactions during this time of fear and uncertainty. I'll probably chill for a little while and see how things play out. My feeling is that we are oversold, however, as seems to be the norm these days a crash is always a possibility.
STO 4 MSFT Dec 17 2011 24 Puts@.38 +138.95
Microsoft is a cash cow and is now steadily raising it's dividend. It is also extremely heavily traded and, therefore, very liquid. It is a holding we are happy to own long term. If put to us we will have a cost basis after commissions of ~23.70/share. There has been strong support for MSFT at this level. At $23.70 our yield on cost is ~3.4%.
If the puts expire worthless our return is 1.45% for 25 days which equates to 21.17% annual. If one were to calculate return on margin (ROM) our return on a margin requirement of $1744.91 is 8% which equates to 115% annual.
I've entered into several transactions during this time of fear and uncertainty. I'll probably chill for a little while and see how things play out. My feeling is that we are oversold, however, as seems to be the norm these days a crash is always a possibility.
Monday, November 21, 2011
Sold Coca Cola (KO) Puts
With the DOW down ~300 to ~11500 and Coca-Cola down to ~65.58 I entered into the following transaction in a taxable account:
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We'd be happy to own KO at ~62. Our yield on cost will exceed 3%. In addition, KO is set to raise the dividend next quarter. If the puts expire worthless we will earn 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return if the puts expire worthless, with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
Sold 2 KO Dec 17 2011 62.5 Puts@.71 +130.47
We'd be happy to own KO at ~62. Our yield on cost will exceed 3%. In addition, KO is set to raise the dividend next quarter. If the puts expire worthless we will earn 1.04% in 26 days or 14.65% annual. If one were to calculate return on margin (ROM) our return if the puts expire worthless, with an initial margin requirement of 1794.99, comes to 7.26% or 102% annual.
Sold AT&T (T) Puts
Today with the DOW down 293 to 11503 and T down to 28.22 I entered into the following transaction in a taxable account.
STO 2 T Jan 21 27.5 Puts @.9 +168.45
I like to enter my income investments on down days. Check. For the recent past AT&T has found solid support at the 27 levels. If put to me our cost basis will be ~26.76 after commissions. At that price our dividend yield on cost is 6.4%. In addition, AT&T will probably announce a dividend increase in December with an ex-dividend date before our puts expire. Therefore, I expect our yield on cost to increase.
If these puts expire worthless our return is 3.1% which is 18.54% annual. For those who figure return on margin (ROM) the return on the margin requirement of $1059.61 is 15.9% or 95.14% annual.
AT&T is a stock we are interested in holding long term. If put to us (and we don't decide to roll the position) we will look forward to collecting the dividends and writing calls to lower our amount invested and increase our yield on cost.
STO 2 T Jan 21 27.5 Puts @.9 +168.45
I like to enter my income investments on down days. Check. For the recent past AT&T has found solid support at the 27 levels. If put to me our cost basis will be ~26.76 after commissions. At that price our dividend yield on cost is 6.4%. In addition, AT&T will probably announce a dividend increase in December with an ex-dividend date before our puts expire. Therefore, I expect our yield on cost to increase.
If these puts expire worthless our return is 3.1% which is 18.54% annual. For those who figure return on margin (ROM) the return on the margin requirement of $1059.61 is 15.9% or 95.14% annual.
AT&T is a stock we are interested in holding long term. If put to us (and we don't decide to roll the position) we will look forward to collecting the dividends and writing calls to lower our amount invested and increase our yield on cost.
Thursday, November 17, 2011
New Trade: Sold General Electric (GE) Puts
This afternoon with GE down to $15.60 and the DOW down 170 points to 11736.21 I entered into the following transaction:
11/17/11 Sold 3 GE Jan 21 14 Puts@.49 +134.75
I'm happy to own GE at 14. In fact, if put to me my cost basis will be ~13.75 after commissions. The dividend yield on $13.75 is 4.4%. GE's dividend is back on the rise. If the puts expire worthless this is a 3.2% return in 5 weeks which equates to ~32% annual. The maintenance requirement to begin with is only $533.24 and for those that calculate return on margin (ROM) the return is a ridiculous 25.27% or ~250% annual. In the recent past GE only fell to 14 once and then bounced right back up so I'll be surprised if the shares are put to me.
I have to admit it is nice to only pay one commission to enter into this trade as opposed to paying twice to enter a covered call investment.
11/17/11 Sold 3 GE Jan 21 14 Puts@.49 +134.75
I'm happy to own GE at 14. In fact, if put to me my cost basis will be ~13.75 after commissions. The dividend yield on $13.75 is 4.4%. GE's dividend is back on the rise. If the puts expire worthless this is a 3.2% return in 5 weeks which equates to ~32% annual. The maintenance requirement to begin with is only $533.24 and for those that calculate return on margin (ROM) the return is a ridiculous 25.27% or ~250% annual. In the recent past GE only fell to 14 once and then bounced right back up so I'll be surprised if the shares are put to me.
I have to admit it is nice to only pay one commission to enter into this trade as opposed to paying twice to enter a covered call investment.
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