My last option trade was a success. On Friday, June 14th, I STC the $35 August 17 2013 Calls I purchased 8 days before. My plan was to sell at a specific price after the underlying stock, BGS, reached above $32. Even though it had breached $32 the day prior, it didn't hit my price until the 14th. The result of the trade was nearly a 200% profit after commission. As of this post BGS is still going up and the option value is going up as well. But as the expression goes, "No one ever got hurt taking a profit."
I believe that BGS may continue to go up for another dollar, but I believe I got out at a good price. I am expecting that BGS will come back down to about $28.75-$29.25. I want to then BTO stock or attempt to trade options on it once again. I haven't yet decided. That's my opinion. What's yours?
Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BGS - B&G Foods Inc.
BTO - buy-to-open / bought-to-open
STC - sell-to-close / sold-to-close
Showing posts with label call options. Show all posts
Showing posts with label call options. Show all posts
Monday, June 17, 2013
Sunday, June 9, 2013
Portfolio Update: Option Pick
Today I am posting about my latest transaction. This transaction is a bullish option trade on BGS. The options I BTO are the $35 August 17, 2013 Calls. Normally, one would want to buy the options ITM to take advantage of the immediate leverage. Unfortunately, I am playing with a minimal amount of free cash so OTM Calls were my only choice.
The trade processed as the second half of a contingency trade. When BGS traded above $29, I bought the options at $0.10 per contract share ($10/option) . I chose the $35 strike because my target for BGS within the next couple months is about $32. And the available intervals for the August Calls are $2.50 apart.
My plan is that when it breaks $32 I am taking the money and walking. I think this is likely. I probaly should have set my purchas for $0.05 per contract share as the following day that was the last purchase price, putting me behind already. I still thik profit is possible. That's my opinion. What's yours? Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BGS - B&G Foods Inc.
BTO - buy-to-open / bought-to-open
ITM - in-the-money
OTM - out-the-money
The trade processed as the second half of a contingency trade. When BGS traded above $29, I bought the options at $0.10 per contract share ($10/option) . I chose the $35 strike because my target for BGS within the next couple months is about $32. And the available intervals for the August Calls are $2.50 apart.
My plan is that when it breaks $32 I am taking the money and walking. I think this is likely. I probaly should have set my purchas for $0.05 per contract share as the following day that was the last purchase price, putting me behind already. I still thik profit is possible. That's my opinion. What's yours? Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BGS - B&G Foods Inc.
BTO - buy-to-open / bought-to-open
ITM - in-the-money
OTM - out-the-money
Tuesday, January 1, 2013
Portfolio Update: Catching up.
So here is the update. In my last post I wrote about rolling my call option on SAND. Since then I have allowed the option to expire worthless. My reasoning being that I lost my faith in it and I want to increase the payouts of my dividend schedule plan further. Because of that I used all further funds in the account to buy more shares in my current positions. But I also sold my position in a low yield stock that I held.
On the 23rd of November, I sold my shares of YUM because I believe the yield is too small for the dividend schedule plan I have for my portfolio. For my plan to work I need bigger payouts. These payouts and the additional funds from the sale of YUM stock will help to accelerate the purchase of more shares of the same stocks I currently hold and a few others I want to add to my portfolio.
On the 27th of November, I bought shares of JNJ. This purchase increased my dividend payout for the third phase of every quarter, which is currently the weaker of the three phases. It also increased my current position of JNJ, a stock I already own.
On the 21st of December, the SAND $15.00 Call option expired worthless. This was a disappointment. I believe the failure is that I bought into it being a cheaper play on gold while gold has been on a three month down trend that has yet to reverse. The hustle over gold might be over since the Mayan Apocalypse didn't happen and there might have been a lot of gold investors who believed in that foolishness.
On the 28th of December, I bought shares of PG. This purchase increased my dividend payout for the second phase of every quarter, the second weakest of the three phases. It also increased my current position of PG, a stock I already own.
The three phases of every quarter are much closer together in strength, now, but maintain their sequential order of strength. My available funds have almost all been depleted as I wait for a scheduled order to be triggered. I will be continuing to fund the account with cash from my day job and monitoring the market for additional investments to add to my portfolio.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
JNJ - Johnson & Johnson
PG - Procter & Gamble Co.
SAND - Sandstorm Gold Ltd.
YUM - Yum! Brands Inc.
On the 23rd of November, I sold my shares of YUM because I believe the yield is too small for the dividend schedule plan I have for my portfolio. For my plan to work I need bigger payouts. These payouts and the additional funds from the sale of YUM stock will help to accelerate the purchase of more shares of the same stocks I currently hold and a few others I want to add to my portfolio.
On the 27th of November, I bought shares of JNJ. This purchase increased my dividend payout for the third phase of every quarter, which is currently the weaker of the three phases. It also increased my current position of JNJ, a stock I already own.
On the 21st of December, the SAND $15.00 Call option expired worthless. This was a disappointment. I believe the failure is that I bought into it being a cheaper play on gold while gold has been on a three month down trend that has yet to reverse. The hustle over gold might be over since the Mayan Apocalypse didn't happen and there might have been a lot of gold investors who believed in that foolishness.
On the 28th of December, I bought shares of PG. This purchase increased my dividend payout for the second phase of every quarter, the second weakest of the three phases. It also increased my current position of PG, a stock I already own.
The three phases of every quarter are much closer together in strength, now, but maintain their sequential order of strength. My available funds have almost all been depleted as I wait for a scheduled order to be triggered. I will be continuing to fund the account with cash from my day job and monitoring the market for additional investments to add to my portfolio.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
JNJ - Johnson & Johnson
PG - Procter & Gamble Co.
SAND - Sandstorm Gold Ltd.
YUM - Yum! Brands Inc.
Thursday, November 15, 2012
Portfolio Update: Option Rolled
In my effort to keep this blog up to date with my trade activity, I have something I need to report. This week, on the 13th of November, I rolled over my SAND option position. The action of rolling simply means that I swapped one position for another with a later expiration, sometimes also changing the strike price and/or direction.
Prior to this change, I held the SAND Nov 17 2012 15.00 Call. I rolled it over into the SAND Dec 22 2012 15.00 Call. This was at a cost to me of an additional $46.32 after all fees and commissions were applied. So I will be looking for a brake-even point of $1.52 per contact share or better.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
SAND - Sandstorm Gold Ltd.
Prior to this change, I held the SAND Nov 17 2012 15.00 Call. I rolled it over into the SAND Dec 22 2012 15.00 Call. This was at a cost to me of an additional $46.32 after all fees and commissions were applied. So I will be looking for a brake-even point of $1.52 per contact share or better.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
SAND - Sandstorm Gold Ltd.
Friday, November 9, 2012
Portfolio Update: Long Over Due
It has, once again, been too long since my last post. In the time that has passed there have been seven changes to my portfolio. I have made 5 purchases, 1 sale, and had an option position expire on me. The 4 of the 5 purchases and the one sale were strategic moves to my portfolio. The remaining 1 purchase and option expiration are my speculation plays.
To start I BTO additional shares in my ETP position. This purchase added to my dividend payout for the second phase of each quarter. This was done on the 3rd of October.
On the 8th of October, I BTO a SAND Nov 17 2012 $15 Call option position. This was done as my speculation play. Unfortunately, I have to admit that the decision to get in was poorly timed and selected. I should have waited for the pull back and then choose an expiration further out. As of this post, it is in the red but seems to be showing signs of improvement. I will be holding it until my profitable sale trigger is hit or it's expiration, which is a week away from this post.
On the 19th of October, my speculation play for FB Oct 20 2012 $15 Put options locked and expired. This was again an unfortunate speculation gone wrong. In hinds sight I should have taken my profits when I had them or probably should have chosen to purchase one option closer to the money instead of three so far out of the money. I still think FB is over-priced, but it seems that they are finally accepting that they have to make revenue in order to attract investors and are making changes that will actually create revenue even at the expense of loosing some of there ~1 billion users.
On the 31st of October, I STC my entire position of DE. I made this decision because DE did not fit the minimum yield requirement of my strategy of holding high dividend yielding stocks. Fortunately, I was able to get out with a very small profit.
On the 2nd of November, I BTO additional shares in two of my existing positions, T and VZ. These purchases added to my dividend payout for the second phase of each quarter. As a result I am almost 70% of my phase one dividend payouts, which are currently the largest.
Finally on the 7th of November, I BTO additional shares in my MCD position. This purchase added to my dividend payout for the third phase of each quarter. As a result I am almost 50% of my phase one dividend payouts.
Despite the fact that falling over the "Fiscal Cliff" will result in an increase of the dividend tax rate, I am not going to change my core strategy of building a portfolio of dividend paying stocks. My portfolio is not currently generating enough income to alter my effective tax rate significantly. I will, however, use the fear in the market to build up my positions.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
DE - Deere & Co.
ETP - Energy Transfer Partners LP
FB - Facebook CL A
MCD - McDonalds Corp
SAND - Sandstorm Gold LTD
STC - sell-to-close/sold-to-close
T - AT&T, Inc
VZ - Verizon Communications
To start I BTO additional shares in my ETP position. This purchase added to my dividend payout for the second phase of each quarter. This was done on the 3rd of October.
On the 8th of October, I BTO a SAND Nov 17 2012 $15 Call option position. This was done as my speculation play. Unfortunately, I have to admit that the decision to get in was poorly timed and selected. I should have waited for the pull back and then choose an expiration further out. As of this post, it is in the red but seems to be showing signs of improvement. I will be holding it until my profitable sale trigger is hit or it's expiration, which is a week away from this post.
On the 19th of October, my speculation play for FB Oct 20 2012 $15 Put options locked and expired. This was again an unfortunate speculation gone wrong. In hinds sight I should have taken my profits when I had them or probably should have chosen to purchase one option closer to the money instead of three so far out of the money. I still think FB is over-priced, but it seems that they are finally accepting that they have to make revenue in order to attract investors and are making changes that will actually create revenue even at the expense of loosing some of there ~1 billion users.
On the 31st of October, I STC my entire position of DE. I made this decision because DE did not fit the minimum yield requirement of my strategy of holding high dividend yielding stocks. Fortunately, I was able to get out with a very small profit.
On the 2nd of November, I BTO additional shares in two of my existing positions, T and VZ. These purchases added to my dividend payout for the second phase of each quarter. As a result I am almost 70% of my phase one dividend payouts, which are currently the largest.
Finally on the 7th of November, I BTO additional shares in my MCD position. This purchase added to my dividend payout for the third phase of each quarter. As a result I am almost 50% of my phase one dividend payouts.
Despite the fact that falling over the "Fiscal Cliff" will result in an increase of the dividend tax rate, I am not going to change my core strategy of building a portfolio of dividend paying stocks. My portfolio is not currently generating enough income to alter my effective tax rate significantly. I will, however, use the fear in the market to build up my positions.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
BTO - buy-to-open/bought-to-open
DE - Deere & Co.
ETP - Energy Transfer Partners LP
FB - Facebook CL A
MCD - McDonalds Corp
SAND - Sandstorm Gold LTD
STC - sell-to-close/sold-to-close
T - AT&T, Inc
VZ - Verizon Communications
Friday, November 18, 2011
Portfolio Update
It has been way too long since my last post, and there is a lot to cover. So without further ado, I will get right into it.
As a result of all the European debt issues, on November 4th I STC my position of CPLP call options I BTO on October 20th. The result was a loss of ~57%. Since then, CPLP has continued to decline, and I sold my entire position on November 15th. That sale resulted in a loss of ~39%, not taking into account any of the dividends I received in the past or the dividend I received on November 16th. After doing that I continued looking at the chart for CPLP and it is channeling slightly to the upside. I might consider buying a couple Call options slightly out of the money and way out in time and wait to see if there is one of those pops that CPLP has done in the past. But at the same time, I finally learned what it means to compare PEG ratios, and apparently CPLP is over priced. So with this new knowledge, I found a couple of really "cheap" stocks in comparison that also pay dividends, GLNG and TDW.
Back on October 14th, I rolled an AAPL Call option to a higher strike price that profited me enough that I would be playing with the houses money. On November 7th I rolled this option out for another month, but unfortunately AAPL has been on the decline. Right now the AAPL Call option I own is almost worthless. At this point only a little of the profit from the original AAPL Call option position remains. I don't think I will be doing anymore rolling of this option. If it does not start rebounding, I will accept the loss.
On November 16th, I BTO positions in IWM and GLD. The plan with these is to build up positions that reflect the four asset classes. IWM for the broad market of stocks, GLD for gold, and in time, with the execution of my open order that is still pending a lower price, TLT for long term treasury bonds. The forth asset class is cash which remains in my account for the purpose of selling put options against. This is an imitation of the American Asset Management investment portfolio owned by Julian Rubinstein. And if I can hold to my plan, I should be able to produce better than his 9% a year track record.
Finally, on November 18th, I sold my lossing position in DWA. The final result of this was a loss of ~43%. As was mentioned with CPLP, I found out that the PEG for DWA indicated that it was over priced. On top of that the expectation I had that people would spend more time in theaters than traveling was too ambitious in these turbulent times. However, my research did reveal that there are two stocks in the same industry that are doing well, CNK and RGC. These two are the theaters that DWA movies play in. Despite the disappointing attendance in comparison to previous years, they both have nicer earnings than DWA. On top of that, they both pay a dividend. I might take a position in either or both stocks at some time in the future.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple Inc.
BTO - buy-to-open/bought-to-open
CNK - Cinemark Holdings Inc
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG
GLD - SPDR Gold Trust
GLNG - Golar LNG Ltd.
IWM - Ishares Russell 2000
PEG - Price-to-Equity by Growth Rate ratio
RGC - Regal Entertainment Group
"rolled" - (rolling) - to sell-to-close one position and buy-to-open another position in the same group of options to take profit or extend risk.
TDW - Tidewater Inc.
STC - sell-to-close/sold-to-close
As a result of all the European debt issues, on November 4th I STC my position of CPLP call options I BTO on October 20th. The result was a loss of ~57%. Since then, CPLP has continued to decline, and I sold my entire position on November 15th. That sale resulted in a loss of ~39%, not taking into account any of the dividends I received in the past or the dividend I received on November 16th. After doing that I continued looking at the chart for CPLP and it is channeling slightly to the upside. I might consider buying a couple Call options slightly out of the money and way out in time and wait to see if there is one of those pops that CPLP has done in the past. But at the same time, I finally learned what it means to compare PEG ratios, and apparently CPLP is over priced. So with this new knowledge, I found a couple of really "cheap" stocks in comparison that also pay dividends, GLNG and TDW.
Back on October 14th, I rolled an AAPL Call option to a higher strike price that profited me enough that I would be playing with the houses money. On November 7th I rolled this option out for another month, but unfortunately AAPL has been on the decline. Right now the AAPL Call option I own is almost worthless. At this point only a little of the profit from the original AAPL Call option position remains. I don't think I will be doing anymore rolling of this option. If it does not start rebounding, I will accept the loss.
On November 16th, I BTO positions in IWM and GLD. The plan with these is to build up positions that reflect the four asset classes. IWM for the broad market of stocks, GLD for gold, and in time, with the execution of my open order that is still pending a lower price, TLT for long term treasury bonds. The forth asset class is cash which remains in my account for the purpose of selling put options against. This is an imitation of the American Asset Management investment portfolio owned by Julian Rubinstein. And if I can hold to my plan, I should be able to produce better than his 9% a year track record.
Finally, on November 18th, I sold my lossing position in DWA. The final result of this was a loss of ~43%. As was mentioned with CPLP, I found out that the PEG for DWA indicated that it was over priced. On top of that the expectation I had that people would spend more time in theaters than traveling was too ambitious in these turbulent times. However, my research did reveal that there are two stocks in the same industry that are doing well, CNK and RGC. These two are the theaters that DWA movies play in. Despite the disappointing attendance in comparison to previous years, they both have nicer earnings than DWA. On top of that, they both pay a dividend. I might take a position in either or both stocks at some time in the future.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple Inc.
BTO - buy-to-open/bought-to-open
CNK - Cinemark Holdings Inc
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG
GLD - SPDR Gold Trust
GLNG - Golar LNG Ltd.
IWM - Ishares Russell 2000
PEG - Price-to-Equity by Growth Rate ratio
RGC - Regal Entertainment Group
"rolled" - (rolling) - to sell-to-close one position and buy-to-open another position in the same group of options to take profit or extend risk.
TDW - Tidewater Inc.
STC - sell-to-close/sold-to-close
Saturday, October 29, 2011
Portfolio Update
Since my last post I have made trades with AAPL, CPLP, DWA, and GLD. I have also continued to add cash to my account as said I would. This is how my portfolio stands at this time.
On October 11th, I had a BTO call option position for AAPL at the 450$ strike price. Three days later I rolled the position to the higher strike price of 485$. This profited me a net of ~95$ or 20%. The gross profit was ~375$ or 79%. This means that I am currently playing with "the houses" money as a gambler would say. This is good for me because the value of that option is now down ~98% with 22 days until expiration. I am still bullish on AAPL, but would not be surprised if I would have to roll this option at a loss just to get a little more time to see my target realized since "Black Friday" comes after this positions expiration.
On October 20th, I BTO 3 CPLP call options for the 7.50$ strike price. I did this because it broke through it's most recent resistance level of 7$. I was expecting a little more upside with the breakout, but since then it has only been trading within pennies of this resistance/support level. I am thinking that it will pull back some, but afterwards power through to at least the next resistance level of $8. I also BTO this position with 5 months until expiration, so I have time on my side.
On October 27th, I BTO two more call options. The first was a for DWA at the 25$ strike price. I BTO this position because it broke a current downward trend line almost two weeks before, and then on the 27th broke above it's recent 20$ resistance level. This position also looks like it will be pulling back some before going up much higher. Fortunately for me, this position is also good until March of 2012, so I have time to wait and see.
The other call option position I BTO on the 27th was for GLD at the 180$ strike price. I BTO this position because it had already broke above the 165$ resistance level it gaped under back in late September and just finished filling the gap created back between September 22nd and 23rd. Gold has a pretty good run during the winter holidays so I believe GLD should be going up in the next few months. I only have up until the December expiration, so am looking for profit by "Black Friday".
In other news, my CIM stock position just recently paid me for holding on to it. Not a lot but, it does help to own dividend paying stocks. It has broken a recent downward trending line but still has one more and a resistance level it failed to break through back in August. That being said, my put option I STO looks like it will expire worthless. If that is the case, I still get to keep my 20$ premium I collected for selling the option and my 250$ that is securing it.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple, Inc.
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
GLD - SPDR Gold Shares (ETF)
"rolled" - (rolling) - to sell-to-close one position and buy-to-open another position in the same group of options to take profit or extend risk.
STO - sell-to-open / sold-to-open
On October 11th, I had a BTO call option position for AAPL at the 450$ strike price. Three days later I rolled the position to the higher strike price of 485$. This profited me a net of ~95$ or 20%. The gross profit was ~375$ or 79%. This means that I am currently playing with "the houses" money as a gambler would say. This is good for me because the value of that option is now down ~98% with 22 days until expiration. I am still bullish on AAPL, but would not be surprised if I would have to roll this option at a loss just to get a little more time to see my target realized since "Black Friday" comes after this positions expiration.
On October 20th, I BTO 3 CPLP call options for the 7.50$ strike price. I did this because it broke through it's most recent resistance level of 7$. I was expecting a little more upside with the breakout, but since then it has only been trading within pennies of this resistance/support level. I am thinking that it will pull back some, but afterwards power through to at least the next resistance level of $8. I also BTO this position with 5 months until expiration, so I have time on my side.
On October 27th, I BTO two more call options. The first was a for DWA at the 25$ strike price. I BTO this position because it broke a current downward trend line almost two weeks before, and then on the 27th broke above it's recent 20$ resistance level. This position also looks like it will be pulling back some before going up much higher. Fortunately for me, this position is also good until March of 2012, so I have time to wait and see.
The other call option position I BTO on the 27th was for GLD at the 180$ strike price. I BTO this position because it had already broke above the 165$ resistance level it gaped under back in late September and just finished filling the gap created back between September 22nd and 23rd. Gold has a pretty good run during the winter holidays so I believe GLD should be going up in the next few months. I only have up until the December expiration, so am looking for profit by "Black Friday".
In other news, my CIM stock position just recently paid me for holding on to it. Not a lot but, it does help to own dividend paying stocks. It has broken a recent downward trending line but still has one more and a resistance level it failed to break through back in August. That being said, my put option I STO looks like it will expire worthless. If that is the case, I still get to keep my 20$ premium I collected for selling the option and my 250$ that is securing it.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple, Inc.
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
GLD - SPDR Gold Shares (ETF)
"rolled" - (rolling) - to sell-to-close one position and buy-to-open another position in the same group of options to take profit or extend risk.
STO - sell-to-open / sold-to-open
Tuesday, October 11, 2011
Portfolio Update
Since my last portfolio update, I made a few trades. But in addition to that I followed through with adding funds to my trading account. In fact, I set up a weekly transfer of funds into my trading account. I have this as part of my budget now.
The first thing I have to report about my trades is that the call option I STO against my position in DWA expired worthless. That means that I get to keep the $34.37 premium I received. I am currently planning my next move with DWA.
My next trade was to BTO a put option against RIMM for Nov 19 2011 at the $23 strike price. This trade was STC 6 trading days later and profited $10.75, or ~5%.
Two days later I BTO two put options against RIMM for Oct 22 2011 at the $20 strike price. This trade was STC 3 trading days later and profited $49.39, or ~23%.
I currently have 4 open or pending orders, 3 open stock positions, and 1 open option position. My plan is to wait to see if my 1 open option position expires worthless or has me put into CIM for another 100 shares at $2.50 a share. My 3 open stock positions are all in the red still, but there is past performance that suggest the possibility for eventual turn around. My 4 open or pending orders are for a position of call options on AAPL, a position of put options on RIMM, a position of call options on CIM, and a position of a call option on CPLP. I am bullish on AAPL, bearish on RIMM, bullish on CIM, and Bullish on CPLP.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple, Inc
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation, Inc.
RIMM - Research In Motion, LTD
STC - sell-to-close / sold-to-closeSTO - sell-to-open / sold-to-open
The first thing I have to report about my trades is that the call option I STO against my position in DWA expired worthless. That means that I get to keep the $34.37 premium I received. I am currently planning my next move with DWA.
My next trade was to BTO a put option against RIMM for Nov 19 2011 at the $23 strike price. This trade was STC 6 trading days later and profited $10.75, or ~5%.
Two days later I BTO two put options against RIMM for Oct 22 2011 at the $20 strike price. This trade was STC 3 trading days later and profited $49.39, or ~23%.
I currently have 4 open or pending orders, 3 open stock positions, and 1 open option position. My plan is to wait to see if my 1 open option position expires worthless or has me put into CIM for another 100 shares at $2.50 a share. My 3 open stock positions are all in the red still, but there is past performance that suggest the possibility for eventual turn around. My 4 open or pending orders are for a position of call options on AAPL, a position of put options on RIMM, a position of call options on CIM, and a position of a call option on CPLP. I am bullish on AAPL, bearish on RIMM, bullish on CIM, and Bullish on CPLP.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
AAPL - Apple, Inc
BTO - buy-to-open / bought-to-open
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation, Inc.
RIMM - Research In Motion, LTD
STC - sell-to-close / sold-to-closeSTO - sell-to-open / sold-to-open
Monday, August 8, 2011
Portfolio Update
Last week was an absolutely terrible week for my portfolio, and this week isn't looking any better. Being as heavily invested in the market as I am, my portfolio is taking a serious hit. My direct equity positions are now down between 27 and 51%. The saving grace to my portfolio is that I made a few trending option plays that are hedging my losses.
Since May 2011, I have had a 30$ Call option against my DWA shares set to expire in September 2011. On the Friday of last week, I bought 3 17.50$ Put options for DWA and I am thankful that I did. With my equity position down over 37%, the Put options are shaving about 2% from that and will exponentially shave more points off of that percentage as the market and DWA gets hammered. It is just a matter of getting out at the right time since they will expire in December 2011.
Additionally, today I had a 2.50$ Put option sold against my cash for an additional position in CIM. The option is set to expire in December 2011 and is only slightly below the current market value of 2.85$. With the coming weeks I will be allocating more cash to my trading account in preparation for purchasing shares in some really good companies that are being beaten down along with everything else. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
DWA - Dreamworks Animation SKG
Since May 2011, I have had a 30$ Call option against my DWA shares set to expire in September 2011. On the Friday of last week, I bought 3 17.50$ Put options for DWA and I am thankful that I did. With my equity position down over 37%, the Put options are shaving about 2% from that and will exponentially shave more points off of that percentage as the market and DWA gets hammered. It is just a matter of getting out at the right time since they will expire in December 2011.
Additionally, today I had a 2.50$ Put option sold against my cash for an additional position in CIM. The option is set to expire in December 2011 and is only slightly below the current market value of 2.85$. With the coming weeks I will be allocating more cash to my trading account in preparation for purchasing shares in some really good companies that are being beaten down along with everything else. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
DWA - Dreamworks Animation SKG
Sunday, July 17, 2011
Portfolio Update
It has been almost a full month since my last post and option expiration has come and gone. Nothing has changed in my portfolio other than the value of my positions. Currently all but one of my positions is running at a negative capital value. This one exception is a covered call I have on my shares of DWA.
The idea here is to make money off of my losers when I really don't think they should not be losers. For instance, DWA has had a lot of really good movies come out this summer. However, that may have been their down fall as the crowds at the theaters have been really light. Most likely because the economy is still really weak and people are even more scared of spending money than I though they would be during the summer.
My other two positions, CIM and CPLP are also currently running at a negative. CIM has recently put in a new 52-week low of 3.18$, and closed this week at 3.25$. Approximately a 20% decline from the 4$ strike price of two of my previous option plays put me in. My orders to sell calls against my shares has yet to be executed so I currently have no hedge in place at the moment. I am curious to see how low it will go, and out of speculation created a put option at the 2.50$ strike price set to expire December 2011.
The situation with my shares of CPLP is relatively the same. CPLP has hit a new 52-week low of 7.86$, but has recovered some the value back since the beginning of last month. However, it is still far from the 10$ strike price of one of my previous option plays put me in. My order to sell a call against my shares has yet to be executed so I currently have no hedge in place at the moment, either.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
The idea here is to make money off of my losers when I really don't think they should not be losers. For instance, DWA has had a lot of really good movies come out this summer. However, that may have been their down fall as the crowds at the theaters have been really light. Most likely because the economy is still really weak and people are even more scared of spending money than I though they would be during the summer.
My other two positions, CIM and CPLP are also currently running at a negative. CIM has recently put in a new 52-week low of 3.18$, and closed this week at 3.25$. Approximately a 20% decline from the 4$ strike price of two of my previous option plays put me in. My orders to sell calls against my shares has yet to be executed so I currently have no hedge in place at the moment. I am curious to see how low it will go, and out of speculation created a put option at the 2.50$ strike price set to expire December 2011.
The situation with my shares of CPLP is relatively the same. CPLP has hit a new 52-week low of 7.86$, but has recovered some the value back since the beginning of last month. However, it is still far from the 10$ strike price of one of my previous option plays put me in. My order to sell a call against my shares has yet to be executed so I currently have no hedge in place at the moment, either.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
Sunday, June 19, 2011
Portfolio Update: Put Exercised
As of this post, the weekend past was option expiration and my CIM put options for the 4$ strike was exercised against my cash. This put's me in at a 55 cent per share loss, less that cost of the premium that I collected for the option. Although this is an initial negative, I am satisfied with the result. The result being that my total position is now 400 shares and I can adjust my option order for the 4.50$ December calls from 1 contract to 4 contracts. I will also be increasing my limit for the STO order to 25 cents per contract share which is a net of about 92$ if it gets purchased. Not to mention I get to hold onto an expected 56$ after the next dividend payout between now and December. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
STO - sell-to-open / sold-to-open
CIM - Chimera Investment Corp.
STO - sell-to-open / sold-to-open
Saturday, June 4, 2011
Portfolio Update
About two weeks ago was option expiration weekend. Since then I have made a few orders but only one has been executed. The order that was executed was a call option against my DWA position. This call option doesn't expire until September. I chose to sell this option because this seems to be one of those summers where the expression "sell in May and go away..." seems accurate. I am choosing to hold on to DWA through the summer despite the continued bearish movement. I truly believe it to be extremely oversold for it's actual performance as a company. I believe that after the summer it should prove to have done relatively well business-wise in this economy. If I had more cash in reserve I would sell more cash-secured puts against it with the intention of getting put into it while everyone seems to be fearful of it. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
DWA - Dreamworks Animation SKG, INC
DWA - Dreamworks Animation SKG, INC
Sunday, May 22, 2011
Portfolio Update
With option expiration passing along with Harold Camping's bogus rapture prediction, this is how my portfolio has changed. The Put option I STO against my cash for CPLP was executed, so I am back into the stock where I was Called out of it a month ago. The benefit of this is that I am not subject to the wash sale rule.
CIM didn't move high enough to trigger the Call option order I STO against the existing shares that I do own. This month, I don't think I will attempt to sell against my current shares. However, with favorable conditions I will still be Put into the 300 shares of CIM by next option expiration just before the stock climbs through the 4$ strike price.
DWA moved down even further decreasing the value of my position in it and negating my order to STO a Call option against my shares from ever being put through. I would really like to see this summer's gas prices keep people going to the theaters for entertainment instead of traveling so that I can at least see a premium for STO a call option against my shares, but that is a bias position considering my stake.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
STO - sell-to-open / sold-to-open / selling-to-open
CIM didn't move high enough to trigger the Call option order I STO against the existing shares that I do own. This month, I don't think I will attempt to sell against my current shares. However, with favorable conditions I will still be Put into the 300 shares of CIM by next option expiration just before the stock climbs through the 4$ strike price.
DWA moved down even further decreasing the value of my position in it and negating my order to STO a Call option against my shares from ever being put through. I would really like to see this summer's gas prices keep people going to the theaters for entertainment instead of traveling so that I can at least see a premium for STO a call option against my shares, but that is a bias position considering my stake.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corp.
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
STO - sell-to-open / sold-to-open / selling-to-open
Friday, May 13, 2011
Putting Myself Into A Position
I am really liking the idea of buying low and selling high. I even like it more with the extra income that comes along with selling options against my cash, which then puts me in or calls me out of a position.
On Thursday I STO three options against my cash for the obligation to buy 300 shares of CIM in the event that it does not break back above 4$ a share before the June expiration date. I think this is a fairly good deal seeing as the company pays out a hefty dividend and shows earnings that can actually support it. As a matter of fact I currently own 100 shares because I did a single order over a month ago.
It is my expectation that I will probably not get put into the 300 share position of CIM since there is so much time between now and the June expiration for those options. But, as always, time will tell. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
STO - sell-to-open/sold-to-open
On Thursday I STO three options against my cash for the obligation to buy 300 shares of CIM in the event that it does not break back above 4$ a share before the June expiration date. I think this is a fairly good deal seeing as the company pays out a hefty dividend and shows earnings that can actually support it. As a matter of fact I currently own 100 shares because I did a single order over a month ago.
It is my expectation that I will probably not get put into the 300 share position of CIM since there is so much time between now and the June expiration for those options. But, as always, time will tell. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com
CIM - Chimera Investment Corp.
STO - sell-to-open/sold-to-open
Tuesday, May 3, 2011
Late Portfolio Update
Life sometimes just gets in the way. Sometimes it is welcomed, but still a distraction. Anyway, I am back, and here is my update. My CPLP Call was executed and my shares called away. Also, my CIM Put was executed and 100 shares were put to me.
With the clearing of those transactions I have already STO one Put option against my cash to re-enter a position of CPLP. I am currently waiting to see how my two open orders against my shares of DWA and CIM work out. I hesitate to believe that I will be seeing premium for these two orders this month, but DWA is looking like something is about to happen and CIM is already climbing back up. With 18 days left, time will tell. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
STO - sold-to-open/sell-to-open
With the clearing of those transactions I have already STO one Put option against my cash to re-enter a position of CPLP. I am currently waiting to see how my two open orders against my shares of DWA and CIM work out. I hesitate to believe that I will be seeing premium for these two orders this month, but DWA is looking like something is about to happen and CIM is already climbing back up. With 18 days left, time will tell. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
STO - sold-to-open/sell-to-open
Wednesday, March 30, 2011
Portfolio Update and Option Pick
Since my last post, I have STO two new positions. The first is a Call against my CPLP position. The second is a Put against cash for a stock I have been watching for a while, CIM.
When I placed the order to STO a Call option against my shares of CPLP, I was strongly influenced by the direction of the momentum indicators on a weekly interval. It was my belief that investors were taking their profits, and the stock would pull back. Unfortunately the pull-back I was expecting was short lived, and it rocketed up to my strike price and muscled through. Because all stocks go up and down, even more so for dividend stocks, I will allow the Call option to remain open against my shares and STO a put option to get back into the stock at the $10 strike price in the even that I get exercised out of my position.
I had placed the order to get into CIM weeks before last months option expiration with little expectation that it would get executed. I wanted my cash doing something other than just sitting in my trade account. So placing an order to secure an option seemed a responsible action until I found something else better. CIM has a relatively wide range that is swings in for it's cost and the dividend is a nice amount to receive if I get exercised into the stock.
I am still waiting to see what will happen with my open order to STO a Call against my DWA shares. Recently DWA has been making head-way towards the $30 strike price I got exercised into it. If things continue as they are, I should be able to get my desired premium for this option cycle.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
STO - sold-to-open/sell-to-open
When I placed the order to STO a Call option against my shares of CPLP, I was strongly influenced by the direction of the momentum indicators on a weekly interval. It was my belief that investors were taking their profits, and the stock would pull back. Unfortunately the pull-back I was expecting was short lived, and it rocketed up to my strike price and muscled through. Because all stocks go up and down, even more so for dividend stocks, I will allow the Call option to remain open against my shares and STO a put option to get back into the stock at the $10 strike price in the even that I get exercised out of my position.
I had placed the order to get into CIM weeks before last months option expiration with little expectation that it would get executed. I wanted my cash doing something other than just sitting in my trade account. So placing an order to secure an option seemed a responsible action until I found something else better. CIM has a relatively wide range that is swings in for it's cost and the dividend is a nice amount to receive if I get exercised into the stock.
I am still waiting to see what will happen with my open order to STO a Call against my DWA shares. Recently DWA has been making head-way towards the $30 strike price I got exercised into it. If things continue as they are, I should be able to get my desired premium for this option cycle.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CIM - Chimera Investment Corporation
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
STO - sold-to-open/sell-to-open
Sunday, March 20, 2011
Portfolio Update
Another month has passed and I am still in my current positions. This I find to be a success, with a bit of unexpected annoyance. I truly believed DWA would have gone up in the passed month, resulting in me being called out of my position. However, it has continued to slide lower and brought down the value of my position. The good news is that I am free to sell another option against it. Sadly though, at a lower premium than I would have liked. I still believe it to be a strong company with a lot of upside potential, although it is being depressed by the economic situation hindering the usage of an individuals discretionary funds for recreation purposes.
On the other hand, CPLP has maintained a relatively high evaluation these passed weeks in response to the Egypt and Lybia news. Despite the news causing it to hold this relatively high evaluation, it did not breach and hold above the $10 strike price of the option I sold against my position. As a result, that option expired worthless this weekend, freeing me to sell against my position again.
I'm looking to find another stock I can sell a Put option against my available cash. I want this stock to have a dividend that I can collect in the event that the option gets exercised and I have to purchase it. Currently all that I have on my watchlist have either suspended their dividend or require more cash than I have available. I will update in the event that I find one.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
On the other hand, CPLP has maintained a relatively high evaluation these passed weeks in response to the Egypt and Lybia news. Despite the news causing it to hold this relatively high evaluation, it did not breach and hold above the $10 strike price of the option I sold against my position. As a result, that option expired worthless this weekend, freeing me to sell against my position again.
I'm looking to find another stock I can sell a Put option against my available cash. I want this stock to have a dividend that I can collect in the event that the option gets exercised and I have to purchase it. Currently all that I have on my watchlist have either suspended their dividend or require more cash than I have available. I will update in the event that I find one.
That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG Inc
Tuesday, February 22, 2011
Portfolio Update
With option expiration occurring last Saturday, February 19, 2011, I have a few things to report in relation to my last post. In my last post I reported that I STO a $10 Call option against my shares of CPLP. In the post prior to that I reported, in addition to my new plan for this year, my STO a $30 Put option for DWA, secured by my own cash.
I STO the $10 Call option against my shares of CPLP because I did not believe it would stay above the $10 strike price through option expiration. This was a successful analysis as it expired worthless, leaving me with the premium in my account. My opinion of this stock has not changed, so I have STO another $10 Call option against my CPLP shares with the expiration date of March 19, 2011.
The $30 Put option I STO was executed against my cash, so I am currently the owner of 100 shares of DWA. For this reason I set an order to STO a $30 Call option against these shares, unfortunately the stock value has decreased as well as the limit I set to STO the order. Currently the order remains open in wait for the stock price, and option price, to recover. I believe this should occur within the next two weeks. If not, I will STO the next available $30 Call option, for April 2011. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
STO - sold-to-open / sell-to-open
I STO the $10 Call option against my shares of CPLP because I did not believe it would stay above the $10 strike price through option expiration. This was a successful analysis as it expired worthless, leaving me with the premium in my account. My opinion of this stock has not changed, so I have STO another $10 Call option against my CPLP shares with the expiration date of March 19, 2011.
The $30 Put option I STO was executed against my cash, so I am currently the owner of 100 shares of DWA. For this reason I set an order to STO a $30 Call option against these shares, unfortunately the stock value has decreased as well as the limit I set to STO the order. Currently the order remains open in wait for the stock price, and option price, to recover. I believe this should occur within the next two weeks. If not, I will STO the next available $30 Call option, for April 2011. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
DWA - Dreamworks Animation SKG, Inc.
STO - sold-to-open / sell-to-open
Thursday, January 6, 2011
Portfolio Update
I am continuing my plan of selling options against my cash and against stocks that I own. Today, an STO order for the CPLP Feb 19 2011 $10.00 call against my shares of CPLP executed today. I chose to sell an option against my position because I have a significant gain in the stock and believe that it will not stay above this value past the expiration date I choose. If it does, however, I will gladly sell a put option against the cash that I collect in order to get back in if it drops back below the $10 strike price. I, however, believe that it will drop below the $10 strike before the February expiration. In which case, I will keep the premium and the dividend paying shares. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
CPLP - Capital Product Partners, LP
STO - sell-to-open / sold-to-open
CPLP - Capital Product Partners, LP
STO - sell-to-open / sold-to-open
Friday, December 17, 2010
Portfolio Update: Worst Week Ever.
Usually I take a breather after making one bad mistake, but not this time. Oh no! This time I make two more mistakes in a row. So here is how it went down.
After last weeks 26% loss on 5 QQQQ 20110122 $54.00 puts, I try to leverage a win in the opposite direction by BTO 10 QQQQ 20110122 $55.00 calls on December 13, 2010. That didn't work out as planned and I end up with a 20% loss on December 15, 2010.
But the bad news doesn't end there. Instead of learning my lesson, and seeing that a very tight sideways trend is forming, I try to leverage yet another win back in the bearish direction on the heels of my calls being STC. I entered a position of 10 QQQQ 20110122 $53.00 puts on December 15, 2010 just to be stopped out again today, December 17, 2010 for a loss of 32.5%. Why so much? I didn't set my stop until after I saw that today wasn't going to be a bearish day.
The only saving grace is that I didn't put all of my available capital to work all at the same time. It was pretty much half in both directions. So I averaged down my loss to only 25.6% total for the week. Would have been much better if I had set my stop by calculating against the high of December 15th like I was suppose to. Then I would only of had about a 17% loss for the week.
So here is the plan. If I do get back into the index it will only be after it breaks out of this trading range by a percentage of its ATR. I am thinking something like 10 or 20 percent. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
ATR - Average True Range / Average Trading Range
BTO - buy-to-open / bought-to-open
QQQQ - PowerShares QQQ Trust ETF
STC - sell-to-close / sold-to-close
After last weeks 26% loss on 5 QQQQ 20110122 $54.00 puts, I try to leverage a win in the opposite direction by BTO 10 QQQQ 20110122 $55.00 calls on December 13, 2010. That didn't work out as planned and I end up with a 20% loss on December 15, 2010.
But the bad news doesn't end there. Instead of learning my lesson, and seeing that a very tight sideways trend is forming, I try to leverage yet another win back in the bearish direction on the heels of my calls being STC. I entered a position of 10 QQQQ 20110122 $53.00 puts on December 15, 2010 just to be stopped out again today, December 17, 2010 for a loss of 32.5%. Why so much? I didn't set my stop until after I saw that today wasn't going to be a bearish day.
The only saving grace is that I didn't put all of my available capital to work all at the same time. It was pretty much half in both directions. So I averaged down my loss to only 25.6% total for the week. Would have been much better if I had set my stop by calculating against the high of December 15th like I was suppose to. Then I would only of had about a 17% loss for the week.
So here is the plan. If I do get back into the index it will only be after it breaks out of this trading range by a percentage of its ATR. I am thinking something like 10 or 20 percent. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com/
ATR - Average True Range / Average Trading Range
BTO - buy-to-open / bought-to-open
QQQQ - PowerShares QQQ Trust ETF
STC - sell-to-close / sold-to-close
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