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

To: dealmakr who wrote (5811)	10/24/2013 3:31:14 PM
From: Jim P.	Read Replies (1) \| Respond to of 5891

POT trading pretty well with the lower guidance. I sold December $32 puts last week for $1.22 and think this is a very good area to sell covered calls. Should be relatively easy to bring the 4% yield up quite a bit with option premiums. A pretty large position for me at 20 puts but I think the dividend is relatively safe, company is buying back shares and the capital projects are going to be lower going forward. jim

To: dealmakr who wrote (5811)	10/25/2013 4:52:56 PM
From: dealmakr	1 Recommendation Recommended By Bocor Read Replies (1) \| Respond to of 5891

Updated Position POT 10/25/13 Well earnings disappointment reflected in a drop in the price for the week and didn't get a great entry on the Dec 32 calls when the stock looked to break 30. I also wrote the shorter term 32.5 puts for 11/08 with the premise if called away would be out of the stock about flat and would then cover the Dec 32 calls which would probably still leave a profit in the trade. If the stock would have cracked the 30 area would have looked to write some puts to add to the position and reduce cost basis. Dividend yield @ 28 would be around 5% which is the area that I would look to go. Will see how things progress from here. 10/04/13 Bot 2000 POT 32.52 (65040) 10/04/13 Sold 20 10/11/13 32.5 Call .56* 10/10/13 Sold 20 Oct 32 Call .58* 10/18/13 Sold 20 10/25/13 32 Call .57* 10/24/13 Sold 20 11/08/13 32.5 Call .07 10/24/13 Sold 20 Dec 32 Call .61 Closed trades Profit/Loss 10/10/13 Dividend .35 on 2000 shares 700 10/10/13 Bot close 20 10/11/13 32.5 call .09 940 10/18/13 Bot close 20 Oct 32 Call .18 800 10/25/13 Expired 20 10/25/13 32 Call 1140 Total return on closed trades 3580 Long 2000 POT 32.52 (65040) Short 20 11/08/13 32.5 Call 140 Short 20 Dec 32 Call .61 1220 Stock closed 10/25 31.18 Good Trading dealmakr