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Strategies & Market Trends : Option Strategies

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To: Jim P. who wrote (1807)	10/26/2016 12:38:32 PM
From: robert b furman	Read Replies (1) of 2591

Premiums are really growing this week !! Time for some put selling - I've done 2 today. Cy Sold 2018 January 10's for $1.50. net purchase price is $8.50. Dividend of .44 / 8.50 = yield of 5.18% Premium to net purchase price (14 months) is 1.50/8.50 = 17.647% but 14 months / 1.167 = 15.12 % Really don't know where I can get 15% on my money or a DIVIDEND OF 5.18% ON A STOCK THAT HAS GROWTH POTENTIAL OF A DOUBLE OVER TIME. My 7 and 8 dollar puts sold in January of 2016 which expire in january 2017 can be rebought for pennies. Cy is really expanding into automotive chips an ongoing growth area with out autonomous boost when they arrive in numbers. Earnings out tomorrow and a resizing writeoff of 40 to 50 million as the new CEO lays off 500 employees world wide. This is the quarter TJ said the Spansion Merger would be worked off by and I hope its is a bigger miss than expected. CY traded down to 6.30 in february 2016 and it was a gift: screencast.com GSK Sold May 2017 39's for $2.50 net purchase price of $36.50 (GSK's 4 year low is 37.24) I think pharma is getting sold on Hillary's desire to cap drug prices and / or Brexit fears. screencast.com GSK mostly makes vaccines and will suffer less than high tech bio drugs as far as drug capping goes. British pound's weakness will boost their international sales and they have made great progress in their huge remaking of their pipeline. New CEO next year but this is a dividend Aristocrat and they have paid a wonderful dividend for years - own some now and would like more. Current dividend is $2.68 / 36.50 = dividend yield of 7.34% Premium to net purchase is 2.50 / 36.50 = 6.85% annualized to 6.85 / .583 = 11.75% not bad money but I'd love to have the stock. Welcome to any feedback - I may not be seeing! Please do your own due diligence. Both stocks have that macd flat line I look for and the stoch spike down to the lower line. CY : screencast.com Cypress may be early as the stock spike is not yet all the way down but earnings tomorrow AH, so it is due or die time - heck whats a day or two when selling a put 14 months out? Hoping for a miss on earnings (estimate is 14 cents) and the restructuring charge from the new automotive oriented CEO's first Webcast - throw out the kitchen sink?? A miss and i'm selling more puts and buying the stock in the 8's??? GSK : screencast.com GSK has a perfect stock spike down with a nice flatlining Macd. Somewhat weird that the keltners bands are within the BB. I look for the reverse. But Brexit and US election anticipations have really depressed this great dividend stock. Keltners work with Average true range and the fast decline has made this stock a unique buy in a quick fasion vs BB and their standard deviation calcs. One thing to note for the record - gulp Bob

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