Owner: The Option Premium Collector URL:http://optionpremiumcollector.blogspot.com/ Join Date: Tue, 16 Dec 2008 01:17:36 -0600 Rating:0 Site Description: The purpose of this blog is to share investment philosophies as well as trades and put them up for discussion. As the name of the blog indicates, the blog primarily sell put and call options and collect the premiums. Site statistics:Click here
Trade Alert: ERX 3X Energy Bull 2008-12-15 09:53:00 I sold to open the January 30 put @ 3.20 per contract. The issue was trading at around 43.50 at the time of the trade. I could have written the out of the money 35's or even 40's and received more premium but that is not consistent with my appetite for risk. I am a fairly conservative investor although this issue has a ton of volatility. If you are an aggressive investor you may want to compare th Read more:Alert
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Poll Result; Big 3 Bailout 2008-12-14 17:46:00 Our poll of whether or not the Big 3 should be bailed out came out 50% for and 50% against. Some very smart people are on both sides of the argument and this poll is indicative of the split in opinions.Personally, I believe we need to bolster our U.S. manufacturing base. Simply put, we need to make more things here and not import so much. There is hardly any consumer item more American than a '69 Read more:Result
Suggested readings; 11 Bets for '09 and Wachovia '09 Forecast 2008-12-13 14:07:00 Jon Markman has written an article I suggest reading titled "11 Bets for '09"; I post this to again remind myself to be very careful in this market. Amidst the doom and gloom of the 10th bet set forth in the article, however, is the quote: "Energy, metals and materials will stabilize and inch higher."These sectors seem to be favored by both bears and bulls and will surely be getting my attention Read more:Forecast
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Look out below! 2008-12-12 08:10:00 My recent posts were very cautionary. I hope you took heed. I awoke this morning to news the auto bailout has failed and that Wall Street icon Bernie Madoff is a crook. Today looks like another bad day, however, nimble traders can profit due to all the volatility. These are historic times.
A must read 2008-12-11 04:29:00 I highly recommend reading this article It is broken into 8 parts because there are 8 different opinions given. I really respect the opinions of those in the last half the most.From a historical perspective the market could halve from here. Even though my investment strategy is to collect premiums as the seller of options I will be keeping my ears and ears open for chances to buy put options like
Unemployment really closer to Depression numbers? 2008-12-10 11:14:00 Although it feels like a bottom has been created and the market has stabilized perhaps we should look closer
at the jobless numbers. The loss of 25% of our jobs was one of the major factors leading to the Great Depression. This article suggests that before calculations of unemployment were changed a few years back we would have a 16.5% unemployment rate as of last month's reading. Since last month Read more:Unemployment
Weakness in Nike 2008-12-10 10:09:00 I'm not going to complain about a 40% gain on my NKE puts, however, NKE is weak on a day when the market is up. That coupled with the larger players selling (see my initial NKE post below) could be a signal that their earnings release will be disappointing.It is not really consistent with my risk appetite to buy puts but I hope some of the readers of this blog followed the NKE trade alert and are
More on Potash Corp. (POT) 2008-12-09 19:13:00 For those interested in trading Potash Corp. of Saskathewan these are new must reads; , Basically, Potash Corp. is cutting production to keep prices high and they and other potash suppliers are getting sued for collusion in this regard. I find it very interesting how necessary their product is to feeding the world.
Trade Result: Gain on NKE 50 Puts 2008-12-09 15:01:00 I decided to take advantage of a down day and take a 40% profit on my Nike Dec 50 puts. I held these for one day buying for .90 and selling for 1.50. I wrote yesterday that I doubted we'd see the market follow through for a 3rd straight day. When it came right down to it I had a hard time waiting for the earnings release and being on the wrong side of time decay.Not bad for a days work. I can see Read more:Result
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Trade Alert: Nike (NKE) 2008-12-08 15:33:00 Well I followed my own trade idea that I posted this weekend and bought Dec 50 Nike puts. I paid .90 ($90) per contract. At the time of my purchase Nike was trading at $56 and the Dow was up around 200 points. This is obviously a short term trade and time decay is working against me rather than for me as I prefer.I consider this trade to pure speculation rather than an investment although it does Read more:Alert
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Trade Ideas; JNJ, PG, NKE 2008-12-07 11:37:00 During these extremely volatile times option premiums are very high and this is true even for the bluest of the blue chips. Usually the option premiums on stocks like Johnson & Johnson, Proctor & Gamble, Coca-Cola and Pepsi are underwhelming. In this environment, however, I think they provide excellent investment opportunities. Here are a couple of examples.Johnson & Johnson closed on Read more:Trade
Wild Times 2008-12-05 15:46:00 Today it was reported that we lost a record number of jobs. In addition, late mortgage payments and foreclosures rose to record highs. So naturally Mr. Market responded by lifting the Dow 259 points...Interestingly, financials were the leaders today. This normally would be bullish since historically it is the financials that lead us in and out of bear markets. In this case I'm hopeful but I'm havi Read more:Times
Trade Alert: ERX 3X Energy Bull 2008-12-04 12:23:00 On a day when this issue is down 16% on the day and the market in the red as well, I sold the Dec 22.5 put at 1.40 per contract. If put to me that would give me a cost basis of 21 and change. The stock is trading at about $32 as of the time of this writing and option expiration day is 15 days away. I think it is unlikely that this will be put to me but if it is I am happy to receive it. I am long Read more:Alert
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Trade Alert: Southern Copper Corp (PCU) 2008-12-03 09:50:00 I bought PCU at 11.63 and immediately sold the Dec 12.5 calls at .80. My cost basis is 10.83 (plus commissions). If the calls are exercised my return will be 15.42% while the return if the stock is unchanged is 7.39%. Even with commissions this equates to well over a 100% return on an annual basis if exercised. There are only 17 days left until option expiration.PCU is currently paying a greater t Read more:Alert
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What's the best time of day to place trades? 2008-12-01 09:27:00 I like to call the first hour of trading "amateur hour" and I avoid trading in that first hour. Lately, I like to set my trades in the last hour as there has been extreme volatility heading into the close. The higher the volatility the higher the option premiums. When the market is panicking up at the close that's when I look to write covered calls on positions that are already established. When t
Trade Alert: Potash Corp. of Saskatchewan (POT) 2008-11-30 16:15:00 On November 26th I sold to open the December 55 put @3.50 thereby collecting $350 per contract sold (less commissions). If the stock is put to me my cost basis will be 51.50 per share (55 minus 3.50 in premium received). That is less than the 52 week low for this stock. Option premiums for this issue are very high so if I decided to accept having the stock put to me I could turn around and write a Read more:Alert
, Saskatchewan
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General Electric; A Bellwether in Distress? 2008-11-29 17:05:00 When GE hit a low of $12.84 on November 20th I debated on whether to write $12.50 December puts. It now looks like they would have been successful trades as GE is over $17 at the time of this writing. James Quinn wrote a great article on GE for Seeking Alpha Reggie Middleton has written another one that I recommend reading Their findings are very disturbing and suggestive of a company in big tro Read more:Electric
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Top Sectors 2008-11-28 21:46:00 I am currently interested in trading options on stocks or ETF's in the following sectors: energy, metals especially precious metals, agriculture, international ETF's, blue chips, railroads and utilities. Since the strategy of selling options is a bullish one, these are the sectors I am most bullish on at this time. Read more:Sectors
Welcome 2008-11-28 21:15:00 Welcome to my blog. The purpose of this blog is to share my investment philosophies as well as my trades and put them up for discussion. As the name of the blog indicates I primarily sell put and call options and collect the premiums. Read more:Welcome
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