Conservative Options trades

OHI is a healthcare REIT which will go ex-dividend on Oct 29th

http://www.dividendinvestor.com/?symbol=ohi&submit=GO

http://ichart.finance.yahoo.com/z?s=OHI&t=2y&q=c&l=off&z=m&a=v&p=s
http://finance.yahoo.com/q/pr?s=OHI
http://finance.yahoo.com/q/is?s=OHI
http://finance.yahoo.com/q/ks?s=OHI


For Nov Expiration..............P/L..................For June Expiration

..........15 CC........15 Short Put............15CC..........15 Short Put
13......(161).............(165)....................(16)................(35)
14......(61)................(65)......................90...................65
15.......39..................35.......................184.................165
16.......39..................35.......................184.................165
---------------------------------------------------------------------------
req:..1491...............1465....................1406................1335
Yield:. 2.6%..............2.4%...................13%...............12.3%
Ann:..31%................29%....................19%...............18.5%
 
Quote from danshirley:

The dollar is falling in value and I would like to have some protection for that. How much protection and in what form?

As a start I will put in place a bull call spread on UDN:

http://finance.yahoo.com/q/pr?s=UDN

http://ichart.finance.yahoo.com/z?s=UDN&t=2y&q=c&l=off&z=m&c=GLD,^DJI&a=v&p=s



Buy the UDN June 26 call and sell the UDN 28 call for a net of 1.55:

...........P/L
25.....(155)
26.....(155)
27......(55)
28.......45
29.......45
-----------------------
Req: 155
Yield: 29% in 241 days or 43% annualized.
More...

Nice journal you have. Just curious about why you take a longer term position like over 6 mths for the dollar, and do you intend to let the position expire?
 
"Just curious about why you take a longer term position like over 6 mths for the dollar, and do you intend to let the position expire"

The june expiration had the largest annualized return at the time I put on the spread. Annualized returns today for the same spread are:
Nov:.....0%
Dec:....15%
Mar:....42%
Jun:....49%

In addition the longer time frame allows time for the effect I am looking for to take place. All too often, when playing such things with options, you are right but your options expire before the market agrees with you.

I do expect to allow this to expire.
 
Quote from danshirley:

All too often, when playing such things with options, you are right but your options expire before the market agrees with you.

I do expect to allow this to expire.
More...

Thanks for the reply, happy trading.
 
Here's another looonng term trade:
PBCT is a very stable bank founded in 1842:

http://finance.yahoo.com/q/pr?s=PBCT

http://finance.yahoo.com/q/bc?t=2y&s=PBCT&l=off&z=m&q=c&c=PNC&c=^DJI

http://finance.yahoo.com/q/is?s=PBCT

http://finance.yahoo.com/q/bs?s=PBCT

http://www.reuters.com/article/marketsNews/idCNBNG38390020091015?rpc=44

They will go exdividend on Oct 28th.

trade:
Buy PBCT at 16.61 and sell the May 17.50 call for .70 . Dividends will total an additional .45 for a net of 1.15.
Yield = 115/ 1591 = 7.25% in 209 DAYS or 12.6% annualized.

The 17.50 short put will yield 106/1555 = 6.8% or 11.8% annualized.

A higher yielding trade:
Sell the may 15 put and buy the may 12.50 put for a net of .40
Yield = 40/210 = 19% in 209 days or 33% annualized.
 
GILD is a very powerful and innovative pharm company
http://finance.yahoo.com/q/pr?s=GILD
http://finance.yahoo.com/q/is?s=GILD
http://finance.yahoo.com/q/bs?s=GILD

Which is having a minor pullback that at least some analysts deem unwarranted:

http://finance.yahoo.com/news/Gilead-shares-fall-despite-apf-671539328.html?x=0&.v=1

GILD shares have been very steady in the past 2 years with strong support at 40:
http://finance.yahoo.com/q/bc?s=GILD&t=2y&l=off&z=m&q=c&c=

We will take a short term position for short term gain:
TRADE:
Sell the Dec 40 put and buy the Dec 35 put for a net of $50.00.
Yield = 50/450 = 11% in 53 days or 75% annualized.

This position will expire before next quarterly reports.
 
GILD: A longer term trade
http://video.forbes.com/fvn/intelligent-technology/gilead-living-vs-dying

http://finance.yahoo.com/q/bc?s=GILD&t=2y&l=off&z=m&q=c&c=

Trade: With GILD at 43.12 sell the May 2010 45 call and cover with the June SSF
..............P/L........%Gain........Ann%
35........(502).......(62%).......(108%)
40...........0.............0.............0
43.12.....310.........39%.........67%
45..........500.........62%........108%
50..........500.........62%........108%
------------------------------------------------------
req: 800
days: 207
 
GIS, a member of our recession proof list, is a very stable stock which has largely resisted the turmoil of the past two years:
http://finance.yahoo.com/q/bc?s=GIS&t=2y&l=off&z=m&q=c&c=^DJI
The stability of the stock reflects the company's stable earnings :
http://finance.yahoo.com/q/is?s=GIS
At it's last earnings report it raised its 2010 projections:
http://finance.yahoo.com/news/General-Mills-1Q-Results-at-a-apf-3568260771.html?x=0&.v=2

Yesterday Cramer recommended GIS as a "safety stock" for diversification:

http://www.thestreet.com/_yahoo/sto...ate-1.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

"People don't cut back on food," he said, "not even when they're dieting!"
:-)
GIS has a beta of just .3

trade: I think GIS's stability justifies an Iron Condor
http://www.theoptionsguide.com/iron-condor.aspx
sell the Jan 2011 45 put and 80 call and hedge with the 50 put and 85 call for a net of $45.
Yield = 45/455= 9.9% in 450 days or 7.9% annualized.
 
Quote from danshirley:

...trade: I think GIS's stability justifies an Iron Condor
http://www.theoptionsguide.com/iron-condor.aspx
sell the Jan 2011 45 put and 80 call and hedge with the 50 put and 85 call for a net of $45.
Yield = 45/455= 9.9% in 450 days or 7.9% annualized.
More...

What's the point of selling an iron condor with 450 days to expiration!? Time decay is virtually zero for the next 400 days.

Mind explaining your logic behind this trade?
 
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