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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (4872)	5/14/2011 7:02:41 AM
From: dealmakr	Read Replies (2) \| Respond to of 5891

Trading Position CSCO 05/13/11 Added exposure prior to earnings with the outlook that even if CSCO missed the stock wouldn't be hit too bad and would like to add a bunch if it pooched to 16. Bot back the 17 puts expiring on 5/13 for a small profit instead of taking an exercise to see what next week has in store with the market looking weak on Friday. Using the weekly series now for a bit more flexibility on positioning and have reduced the loss from writing back to a zero starting point. The May 18 calls should bingo next Friday and will be looking at new writes from both sides to generate some premium on this trading position. The trades posted here are used specifically in an options trading position and are not reflective of what also may take place overall in swing & daytrading CSCO where the profits / losses won't be applied here and the size of the position much larger and the timeframe much shorter, but every type of trade has its own parameters for risk/reward. 12/31/10 Sold 25 Apr 18 Put .42* 02/23/11 Sold 25 Jul 16 Put .45 04/11/11 Sold 15 May 18 Call .50 04/12/11 Bot 1500 CSCO 17.58 (26370) 04/12/11 Sold 10 May 18 Call .45 04/13/11 Bot 1000 CSCO 17.28 (17280) 04/25/11 Sold 25 04/29 17 Put .14* 05/09/11 Sold 50 05/13/11 16 Put .05* 05/09/11 Sold 25 05/13/11 17 Put .25* Closed trades Profit/Loss 04/13/11 Bot close 25 Apr 18 Put .76 (850) 04/29/11 Expired 25 04/29/11 17 Put 350 05/13/11 Expired 50 05/13/11 16 put 250 05/13/11 Bot close 25 05/13/11 17 put .15 250 Total return on closed trades (0) Short 25 May 18 Call 1200 Short 25 Jul 16 Put 1125 Net Position Exposure Long 2500 CSCO avg/share 17.46 (43650) Stock closed 05/13 16.88 Covered Calls 2500 shares Naked Puts 2500 shares Good Trading