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

To: Robohogs who wrote (5256)	7/20/2012 7:58:13 AM
From: CommanderCricket	3 Recommendations Respond to of 5891

Jon, I manage a half dozen accounts for family/friends and have set up nearly the same as you describe. Don't really trade these accounts and let time do it's magic. May go weeks before ever looking at them. The goal is 10% - 15% a year and accomplish this by selling deep out of the money puts out 6 - 9 months. Slowly moving this way toward the active trading accounts to cut down on the daily volatility. Willing to give up some performance for stability and better sleep at night. Really like the CLF trade at these levels as the fundamentals and TA support the price and the premiums are enough to justify the trade. Don't even care if CLF ever goes higher as the $40 - $52 channel would work great over a period of time. Thanks for sharing your comments on managing your Mom's account. Michael

To: Robohogs who wrote (5256)	7/20/2012 3:51:30 PM
From: Keith J	Read Replies (2) \| Respond to of 5891

Couple other small August put positions I added this week, in addition to BPI: GMCR 13s for 51 cents ROVI 10s for 53 cents, which have already improved significantly Longer term puts: SIMO Dec. 12.5s for 1.84 RCL Dec. 22s for 1.55 Looked at CMG today, but going to hold off on - even with big selloff, not great premiums. Will continue to look at major losers for shorter term put trade opportunities. Might add to IOC if we get a pullback. But not liking that Spanish bond yield. Glad only 4 weeks until Aug. expiration. KJ

To: Robohogs who wrote (5256)	8/5/2012 11:40:58 PM
From: Robohogs	2 Recommendations Read Replies (3) \| Respond to of 5891

Update on managed acct for mom. AMZN expired worthless and covered CHV. I added IOC Jan $65 puts. I added CIE aug 22.5 puts (hurting a bit). I shorted some ATPG calls and BKS puts. Long CETV and short Aug $5 calls - 2% of buying power FOR 2% of current premiums 2 long bios - residual from long time ago - 5% of buying power for no premiums ATPG short Jan 14 $7 calls - 3% for 3-4% of premiums. NEW ADTN short Aug $19 puts - 3% for 1% of premiums BKS short Jan $12.5 puts - 3% for 8%. NEW BPI short Aug $7.5 puts - 1% for 1% CEDC short Dec $2 puts - 1% for 2% CLF Jan $39 puts - 3% for 8% CIE Aug $22.5 puts - 3% for 4%. NEW. Big Loser. FLS Aug $100 puts - 1% for nothing (could cover) INFY Aug $35 puts - 3% for nothing IDCC Jan $27.5 puts - 2% for 5%. Much reduced margin. Big Winner. ITMN Jan $5 puts - 6% for 9%. NEW. ITMN Jan $7.5 puts - 2% for 6%. NEW. ITMN Jan $12.5 calls - 0% for 2%. NEW. IOC Jan $22.5 puts - 3% for 1%. NEW. IOC Jan $65 puts - 3% for 11%. NEW. MAKO Nov $11 puts - 2% for 5%. NEW. NTES Aug $50 and $52.5 puts - 9% for 8% STX Dec $19 puts - 2% for 2%. Big Winner. LCC Jan $4 puts - 1% for 1% LCC Jan $5 puts - 2% for 3% LCC Jan $9 puts - 4% for 14% VVUS Sept $17 puts - 3% for 3% WLT Sept $27.5 puts - 3% for 4% So per calcs above, I have used 70% of capacity. Capacity consists of account value plus premiums written where premiums written = 18% of acct value or 15% of total buying power. All puts are OTM and CETV covered call is just barely ITM. 1 cent. I only wrote IDCC ITM as well as some of the CETV calls. The % of premiums adds up to a few percent above 100% due to rounding. The ADTN, FLS and INFY positions may be closed as work done there although MMs wanted me to hit ask to finish out ADTN on Friday. NTES really not worth risk relative to other way OTM positions. LCC, NTES, CLF and CIE are big losers, AMZN made max profits, and CHV good profits, and big gainers include STX, WLT, ATPG, IDCC, and CETV. All other positions are profitable or losing only commissions although some ITMN positions are small losers but overall ITMN is profitable. The newsletter trades only slightly profitable as NTES has almost eaten gains from rest. My portfolio does not have ADTN, BPI, CLF, FLS, INFY, NTES, or VVUS. I have different WLT and STX strikes and expirations. BPI never filled in my account and CLF stop loss triggered on different option in my acct. ADTN, AMZN, Chevron, FLS, INFY and NTES came from a newsletter I follow while VVUS was used here and PCYC, VRTX and ARNA used in own accounts. I completely butchered my own ARNA trade calling overall move right but getting knocked out once on short calls. I re-entered but exited all puts and calls as puts hit stops and I cleared whole trade for dinner money net net. I made $200 for $1000 of commissions! On PCYC, I made a quick hitting profit off of the lows and exited for very low 4 figures gain. VRTX building into big main position in my accounts - stock action only ok off of lows relative to recent news though. Stock ran for mid 50s on earnings and on competitor news only to get held back by aggressive selling. Through these posts I hope to let people see my thinking. Jon