Today the following puts expired worthless:
04/24/2012 STO 3 Apr 27 2012 29.5 Puts @.22 53.71
Margin maintenance on the trade was $1745. In three days we earned 3.08% return on maintenance or 374% annual.
Showing posts with label SLV. Show all posts
Showing posts with label SLV. Show all posts
Friday, April 27, 2012
Wednesday, April 25, 2012
New Trade: SLV Naked Puts
Today I entered into the following short term trade:
04/24/2012 STO 3 Apr 27 2012 29.5 Puts @.22 53.71
This is a tiny 3 day trade that is attempting to take advantage of SLV falling below 30, of precious metals consolidating their lows and of some wicked time decay. Margin maintenance on the trade is $1745. The return on maintenance is 3.08% or 374% annual. If silver drops we have many options to roll down and out for a net credit. As such an exit strategy is in place.
04/24/2012 STO 3 Apr 27 2012 29.5 Puts @.22 53.71
This is a tiny 3 day trade that is attempting to take advantage of SLV falling below 30, of precious metals consolidating their lows and of some wicked time decay. Margin maintenance on the trade is $1745. The return on maintenance is 3.08% or 374% annual. If silver drops we have many options to roll down and out for a net credit. As such an exit strategy is in place.
Saturday, April 21, 2012
Profitable Trade: SLV Naked Puts
Yesterday the following naked puts expired worthless:
04/16/2012 STO 3 SLV April 21 2012 30 Puts @.29 74.71
Silver stayed range bound so these puts expired worthless. We earned 4.3% in 5 days on $1737.13 in margin maintenance. That equates to 313.9% annual. We'll look to put that margin maintenance to work soon. I like the opportunities provided by the recent weakness in JNJ. I'm looking at the 60 puts a few months out.
04/16/2012 STO 3 SLV April 21 2012 30 Puts @.29 74.71
Silver stayed range bound so these puts expired worthless. We earned 4.3% in 5 days on $1737.13 in margin maintenance. That equates to 313.9% annual. We'll look to put that margin maintenance to work soon. I like the opportunities provided by the recent weakness in JNJ. I'm looking at the 60 puts a few months out.
Tuesday, April 17, 2012
New Trade: Sold SLV Naked Puts
Yesterday I entered into the following transaction:
04/16/2012 STO 3 SLV April 21 2012 30 Puts @.29 74.71
Silver has been pretty steady in the 30 - 32 range for quite some time now. In this account we have some longer term trades so I wanted to put some shorter term money to work. Even though SLV has been range bound the option premiums are still relatively high. It is very easy to roll out and down for a credit especially since there are weekly options available so an exit strategy is in place. If these puts expire worthless we will earn 4.3% in 5 days on $1737.13 in margin maintenance. That equates to 313.9% annual.
Risks are strength in the dollar and that the GLD and SLV house of cards come crashing down as there is no guarantee these precious metals are backed by physical gold and silver.
04/16/2012 STO 3 SLV April 21 2012 30 Puts @.29 74.71
Silver has been pretty steady in the 30 - 32 range for quite some time now. In this account we have some longer term trades so I wanted to put some shorter term money to work. Even though SLV has been range bound the option premiums are still relatively high. It is very easy to roll out and down for a credit especially since there are weekly options available so an exit strategy is in place. If these puts expire worthless we will earn 4.3% in 5 days on $1737.13 in margin maintenance. That equates to 313.9% annual.
Risks are strength in the dollar and that the GLD and SLV house of cards come crashing down as there is no guarantee these precious metals are backed by physical gold and silver.
Saturday, February 11, 2012
Profitable Trade: SLV Naked Puts
Yesterday in a taxable account I closed out the following transaction for a profit:
01/30/2012 STO 7 SLV Feb 18 2012 30 Puts @.23 145.70
02/10/2012 BTC 7 SLV Feb 18 2012 30 Puts @.05 -35.09
In this trade we made $110.61 in 10 days on a maintenance requirement of $2800.00. This equates to a 3.95% return on margin or 144% annual. I closed out the trade when there was no commission.
01/30/2012 STO 7 SLV Feb 18 2012 30 Puts @.23 145.70
02/10/2012 BTC 7 SLV Feb 18 2012 30 Puts @.05 -35.09
In this trade we made $110.61 in 10 days on a maintenance requirement of $2800.00. This equates to a 3.95% return on margin or 144% annual. I closed out the trade when there was no commission.
Thursday, February 2, 2012
New Trade: Sold SLV Naked Puts
A couple of days ago I entered into the following transaction in a taxable account:
01/30/2012 STO 7 SLV Feb 18 2012 30 Puts @.23 145.70
It looks like the precious metals bottomed ~ three weeks ago. SLV has been north of 30 and rising for some time. If it drops SLV has provided good opportunities to roll out to the next month and down a strike for a net credit. As such, we have an additional exit strategy in place. If I hadn't been dealing with a family emergency I probably would have been a tad more patient and waited for SLV to drop a bit and written the less risky 29's for a little less return. I didn't have that luxury but I wanted to put time decay to work while I was out of town. If these puts expire worthless we will earn $145.70 in 18 days on $2800 margin maintenance (which is free BTW). This equates to a 5.2% return or 105.44% annual.
01/30/2012 STO 7 SLV Feb 18 2012 30 Puts @.23 145.70
It looks like the precious metals bottomed ~ three weeks ago. SLV has been north of 30 and rising for some time. If it drops SLV has provided good opportunities to roll out to the next month and down a strike for a net credit. As such, we have an additional exit strategy in place. If I hadn't been dealing with a family emergency I probably would have been a tad more patient and waited for SLV to drop a bit and written the less risky 29's for a little less return. I didn't have that luxury but I wanted to put time decay to work while I was out of town. If these puts expire worthless we will earn $145.70 in 18 days on $2800 margin maintenance (which is free BTW). This equates to a 5.2% return or 105.44% annual.
Monday, January 30, 2012
Profitable Trade: SLV Naked Puts
The following SLV naked puts expired worthless in a taxable account:
01/19/2012 STO 6 SLV Jan 27 2012 28 Puts @.15 75.46
In this 8 day trade the puts expired worthless This trade earned a 2.94% return on margin maintenance of $2568.00 which equates to 134.1% annual.
01/19/2012 STO 6 SLV Jan 27 2012 28 Puts @.15 75.46
In this 8 day trade the puts expired worthless This trade earned a 2.94% return on margin maintenance of $2568.00 which equates to 134.1% annual.
Sunday, January 22, 2012
Profitable Trade: SLV Covered Call
Today we were assigned out of our position in SLV in a Roth IRA. The trade was as follows:
12/19/2011 Bought 100 SLV @ 28.389 -2848.85
12/19/2011 STO 1 SLV Jan 21 2012 29 Call@1.12 +101.27
01/21/2011 Sold 100 SLV @ 29 2879.94
We made $132.94 in 33 days. This equates to a 4.84% return or 53.5% annual. There weren't any juicy near month options to roll so we let it get assigned. I'll be hoping to find an opportunity to get this cash back in play soon.
12/19/2011 Bought 100 SLV @ 28.389 -2848.85
12/19/2011 STO 1 SLV Jan 21 2012 29 Call@1.12 +101.27
01/21/2011 Sold 100 SLV @ 29 2879.94
We made $132.94 in 33 days. This equates to a 4.84% return or 53.5% annual. There weren't any juicy near month options to roll so we let it get assigned. I'll be hoping to find an opportunity to get this cash back in play soon.
Saturday, January 21, 2012
Profitable Trade: GDX Naked Puts
Yesterday I closed out for a profit in a taxable account the following transaction:
12/12/2011 STO 2 GDX Jan 21 2012 52 Puts @ 1.47 +282.45
01/20/2012 BTC 2 GDX Jan 21 2012 52 Puts @ .03 -6.03
We made $276.42 on this investment in 39 days. The average margin maintenance was ~ 4400.00. This equates to a return on margin of 6.3% or 59% annual. As I've stated I thought precious metals bottomed a couple of weeks ago. The massive run up of the dollar is consolidating and toppy. I'm probably going to be trading GDX and GDXJ (junior precious metal miners) more than GLD and SLV as the latter ETF's are paper rather than physical metal. We've seen with MF Global that paper can vanish into thin air. Many investors have lost faith in the COMEX and some in the know believe that at some point GLD and SLV will default on their obligations. We've seen with credit default swaps, fractional banking and the like that paper assets can vanish in a corrupt dark cloud.
12/12/2011 STO 2 GDX Jan 21 2012 52 Puts @ 1.47 +282.45
01/20/2012 BTC 2 GDX Jan 21 2012 52 Puts @ .03 -6.03
We made $276.42 on this investment in 39 days. The average margin maintenance was ~ 4400.00. This equates to a return on margin of 6.3% or 59% annual. As I've stated I thought precious metals bottomed a couple of weeks ago. The massive run up of the dollar is consolidating and toppy. I'm probably going to be trading GDX and GDXJ (junior precious metal miners) more than GLD and SLV as the latter ETF's are paper rather than physical metal. We've seen with MF Global that paper can vanish into thin air. Many investors have lost faith in the COMEX and some in the know believe that at some point GLD and SLV will default on their obligations. We've seen with credit default swaps, fractional banking and the like that paper assets can vanish in a corrupt dark cloud.
Thursday, January 19, 2012
New Trade: SLV Naked Puts
Today in a taxable account with SLV trading at 29.65 I entered into the following transaction:
01/19/2012 STO 6 SLV Jan 27 2012 28 Puts @.15 75.46
The new weekly options on this came out today. I was so busy with other things that I missed out on last week's trade. The dollar seems to be weakening again and the precious metals bottomed a couple of weeks ago. If the trade goes against me I'll either close or roll out and down. If these puts expire worthless it is 2.94% return on margin maintenance of $2568.00 which equates to 134.1% annual.
01/19/2012 STO 6 SLV Jan 27 2012 28 Puts @.15 75.46
The new weekly options on this came out today. I was so busy with other things that I missed out on last week's trade. The dollar seems to be weakening again and the precious metals bottomed a couple of weeks ago. If the trade goes against me I'll either close or roll out and down. If these puts expire worthless it is 2.94% return on margin maintenance of $2568.00 which equates to 134.1% annual.
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.
Saturday, December 31, 2011
Profitable Trade: SLV Naked Puts
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.
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.
Friday, December 30, 2011
Precious Metals and other thoughts
Well it looks like precious metals bottom was yesterday morning. The GDX, GLD and SLV are all on the rise this morning. I assume that fear of a metals crash shook the herd out yesterday. In the face of this crash we were entering positions. With the MF Global situation and the weakness in the Euro it took more resolve than usual to go against the herd.
I understand and appreciate the simplicity and lack of stress that the dividend growth investor exists in! That being said, I believe I've learned methods that enhance the returns of the dividend growth strategy and which offer greater downside protection. It should be noted that in some accounts I hold that we are simple dividend growth investors with the usual suspects of Proctor and Gamble, Johnson & Johnson, AT& T, McDonald's, Wal-Mart, Pepsico, etc.
I understand and appreciate the simplicity and lack of stress that the dividend growth investor exists in! That being said, I believe I've learned methods that enhance the returns of the dividend growth strategy and which offer greater downside protection. It should be noted that in some accounts I hold that we are simple dividend growth investors with the usual suspects of Proctor and Gamble, Johnson & Johnson, AT& T, McDonald's, Wal-Mart, Pepsico, etc.
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.
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.
Monday, December 19, 2011
New Trade: Silver (SLV) Covered Call
Today I entered into the following transaction in a Roth IRA:
12/19/2011 Bought 100 SLV @ 28.389 -2848.85
12/19/2011 STO 1 SLV Jan 21 2012 29 Call@1.12 +101.27
Silver has been slaughtered as of late and it is trading at the bottom of it's trading range. Our out of pocket is $27.47 which is at or below the bottom of SLV's trading range for the last year. We are bullish on precious metals and look at the recent downturn as a buying opportunity. If we get called away we will make $133 in 33 days which equates to 4.84% or 53.53% annual.
12/19/2011 Bought 100 SLV @ 28.389 -2848.85
12/19/2011 STO 1 SLV Jan 21 2012 29 Call@1.12 +101.27
Silver has been slaughtered as of late and it is trading at the bottom of it's trading range. Our out of pocket is $27.47 which is at or below the bottom of SLV's trading range for the last year. We are bullish on precious metals and look at the recent downturn as a buying opportunity. If we get called away we will make $133 in 33 days which equates to 4.84% or 53.53% annual.
Thursday, December 8, 2011
Swing Low Sweet Sentiment
We've got cash at the ready. We just need the herd to swing the pendulum back toward fear. Downright Damien Omen, Exorcist panic and horror would be this gal's preference. Trade the Psychology, Ride the Lightning...ha.
World economies are in the position of relying on government to set things right. May I have some examples of when that has ultimately worked in the past? Politicians are short sighted. Short sightedness put the world economies in the situation we're in. A doctor with broken arms flapping in the wind can't perform surgery on the gasping patient.
When the market heads back south I will be at the ready to sell naked and covered puts below the support levels of Dividend Champions. I will be rolling my existing covered call positions to keep the premiums and dividends pouring in. I love my Double D's! (that's double dividends fellas..). I also love to trade precious metals ETF's with options. I believe we are in the midst of a long term secular bull in precious metals. If you'll search under GDX, GLD and SLV on this blog you'll find several examples of "have your cake and eat it" trades.
On covered calls we will look closely at in the money and at the money strikes first. I'm a believer that we now live in a world where we are witnessing the end of growth. I'll give up capital appreciation for boring double digit income returns.
As for now, I'm licking my lips...and waiting...
World economies are in the position of relying on government to set things right. May I have some examples of when that has ultimately worked in the past? Politicians are short sighted. Short sightedness put the world economies in the situation we're in. A doctor with broken arms flapping in the wind can't perform surgery on the gasping patient.
When the market heads back south I will be at the ready to sell naked and covered puts below the support levels of Dividend Champions. I will be rolling my existing covered call positions to keep the premiums and dividends pouring in. I love my Double D's! (that's double dividends fellas..). I also love to trade precious metals ETF's with options. I believe we are in the midst of a long term secular bull in precious metals. If you'll search under GDX, GLD and SLV on this blog you'll find several examples of "have your cake and eat it" trades.
On covered calls we will look closely at in the money and at the money strikes first. I'm a believer that we now live in a world where we are witnessing the end of growth. I'll give up capital appreciation for boring double digit income returns.
As for now, I'm licking my lips...and waiting...
Wednesday, November 30, 2011
Trading a Bipolar Market
Today the futures are up big, building on Monday's momentum. Last week the world economy was headed toward sure collapse. China is in a bubble...no wait....China's government is taking action to support banks. The end of the Euro...no wait...world bankers are getting together to support the whole world economy. Back and forth it goes...
So what's a gal to do in this mad, mad, man's world? Read the charts baby, that's what. I'm selling out of the money puts at or below a stocks lows during the last year. I'm only entering new income positions when the bipolar meter is set to doom, gloom, dog and cats living together.
With such high volatility there are above average premiums to be collected out there. Even deep in the money covered calls are providing double digit annual returns. Lovin' it! Yumsicle!...*clears throat*...where was I? Oh yeah..
And all this money to be made on widow and orphan blue chip Dividend Champions. If one wants to get a little racy they can trade the precious metals etf's like GLD, SLV and GDX. They don't pay dividends but the option premiums are juicy and this gal loves long term secular bulls.
Be greedy when others are fearful. Be fearful when others are greedy. Buy low, sell high. Only invest in those stocks that you are happy to own for the long haul. Only roll options for a credit. Don't stand under a tree holding a golf club when it's lightning. And finally: What's sexier then a hot babe who can trade the average guy under the table? :)
So what's a gal to do in this mad, mad, man's world? Read the charts baby, that's what. I'm selling out of the money puts at or below a stocks lows during the last year. I'm only entering new income positions when the bipolar meter is set to doom, gloom, dog and cats living together.
With such high volatility there are above average premiums to be collected out there. Even deep in the money covered calls are providing double digit annual returns. Lovin' it! Yumsicle!...*clears throat*...where was I? Oh yeah..
And all this money to be made on widow and orphan blue chip Dividend Champions. If one wants to get a little racy they can trade the precious metals etf's like GLD, SLV and GDX. They don't pay dividends but the option premiums are juicy and this gal loves long term secular bulls.
Be greedy when others are fearful. Be fearful when others are greedy. Buy low, sell high. Only invest in those stocks that you are happy to own for the long haul. Only roll options for a credit. Don't stand under a tree holding a golf club when it's lightning. And finally: What's sexier then a hot babe who can trade the average guy under the table? :)
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