Thursday, November 24, 2011

Selling AAPL Weekly PUTS

Wednesday, November 16, 2011

New Trade - Short VALE Dec 21 PUTS

Continuing my recent them of doing short puts on companies I have owned and liked in the past at higher prices, sold the Dec 21 puts on VALE today for $0.22. I like the chart showing that this was near the low of the past 9 months.

Monday, November 14, 2011

New Trade - Short MOS Nov. Puts

Essentially the same trade that worked well last week so giving it another go. Sold the 55 Puts for $0.57 and the 52.5 Puts for $0.20.

AA Short Dec 9 PUT

New position initiated today. Had AA in my portfolio awhile back, sold it for $15 earlier this year so I'm a willing buyer for $9.

RMBS Update

Bought back my short Nov 20 calls and rolled to Jan 20 for a credit of $1.85. Considered seeing if these will expire worthless this Friday, but decided that I do not want to take risk of a lot of IV disappearing after jury decision which could come at any time. Furthermore if Rambus loses the case the share price will tank, so this credit provides a lot of protection against that event. Still have 1/2 of my shares covered with strike 18 calls, will let those ride through expiration and see what happens.

New Trade JPM Dec 29 PUTS

Initiated this short PUT position today for December expiration. Break even at expiration is $28.34 which is not too much higher than the 9 month low of $27.85. May be a little volatile with the mess in Europe but that is why the premium is pretty good and gives a chance to make close to $2000 if these .20 delta options expire worthless.

Monday, November 7, 2011

MOS Weekly PUT 55

New position just initiated near end of day Monday. Sold the weekly MOS 55 put for $0.21. The motivation and theory behind this trade is essentially the same as the POT naked put from last week. MOS is a stock I have owned before and am comfortable buying at 55 if I am assigned. Did 5 contracts so it's just a small gain if it works out, but odds are favorable showing only 13.6% probability of my being assigned at the moment.