Conservative Options Trades

CMX:
http://finance.yahoo.com/news/officemax-omx-zacks-rank-buy-060013353.html

http://finance.yahoo.com/q/ks?s=OMX+Key+Statistics

http://investing.money.msn.com/investments/financial-statements?symbol=omx

http://finance.yahoo.com/q/bc?s=OMX&t=5y&l=off&z=l&q=l&c=

Looking for a trade for May expiration:

Bull Put Spread: Sell the $10 put and buy the $5 put
Bull Call Spread: Buy the $5 call and sell the $10 call
Reversal: Buy the $10 call and sell the $10 put


.......................Bull Put Spread................Bull Call Spread............Reversal
Required..............380...................................400..........................990
price.....................P/L..................................P/L...........................P/L.
5.00....................(380)...............................(400)........................(482)
7.00....................(178)...............................(198)........................(286)
9.00.....................25.....................................5...........................(90)12.00..................120..................................100..........................213
15.00..................120..................................100..........................513

(Assumes a cash account........copied from post on another site)
 
GIS:

http://finance.yahoo.com/news/general-mills-raises-outlook-stronger-131822250.html

http://news.investors.com/business/...it-jumps-raises-outlook.htm?ven=yahoocp,yahoo

http://investing.money.msn.com/investments/financial-statements?symbol=gis

http://finance.yahoo.com/q/ks?s=GIS+Key+Statistics

http://finance.yahoo.com/q/bc?s=GIS&t=5y&l=off&z=l&q=l&c=

Trade:
With GIS at 40.94
Jul 35/30 bull put spread for $20
Yield = 20/480 = 4.17% in 186 days or 8.2% annualized
Prob = 96%
Expectation = .96(20) - .01(480) - .03(240) = 19.2 - 4.8 - 7.2 = 7.2

This is an interim trade. I have a number of spreads which are expiring this week and I need to replace them to maintain income from my portfolio. A 1 year 30/25 GIS spread is among those. GIS has run up during the year and I am taking a short term spread in hopes the market pulls back over the next six months so that I can get a better yield and position for the rest of the year.

(copied from post on another site)
 
GME:

http://finance.yahoo.com/news/soft-holiday-sales-gamestop-203853982.html

http://seekingalpha.com/article/1106871-cramer-s-mad-money-game-over-for-gamestop-1-10-13

http://finance.yahoo.com/q/bc?s=GME+Basic+Chart

Trade:
With GME at 23.01
Buy the Jul 23 put and sell the Jul 20 put for a net debit of $146

Price...................P/L
25.....................(146)
23.....................(146)
22......................(47)
21.......................54
20......................154
19......................154

:-)
 
again looking to replace a Jan expiration:

MRK: 35/30 bull put spread

Expiration.........Premium..............Days..........Annualized Yield..........Probability...........Prob*Yield
April....................1.00..................94....................8.0%.....................99%................0.079
July....................20.00................185....................8.2%.....................96%................0.079
Jan '14................61.00................367...................13.8%.....................89%...............0.123
Jan '15...............124.00................731...................16.5%....................81%................0.136

Jan '14 looks good to me


(copied from another board)
 
GE:

http://finance.yahoo.com/news/general-electric-marginally-beats-153312595.html

http://finance.yahoo.com/news/ge-earnings-rise-emerging-market-115643073.html

http://www.nytimes.com/2013/01/19/b...ergy-equipment.html?partner=yahoofinance&_r=0

http://finance.yahoo.com/q/ks?s=GE+Key+Statistics

http://investing.money.msn.com/investments/financial-statements?symbol=ge

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

Trade:
One year trade to replace expiring spreads but not a roll-over.
Sacrificing high yield for high probability... and recognizing GE is at a high point... if GE pulls back I'll add to my position at a more favorable technical point.

With GE at 22.04
Trade 1
Jan '14 15/10 bull put spread for a net credit of $20
Yield = 20/480 = 4.2% in 364 days or 4.2% annualized
Prob = 98%
Expectation = .98(20) - .01(480) - .01(240) = 19.6 - 4.8 - 2.4 = 12.4

Trade 2
Jan '14 27/30 bear call spread for a net credit of $12
Yield = 12/288 = 4.2% in 364 days or 4.2% annualized
Prob = 91%
Expectation = .91(12) - .02(288) - .07(144) = 10.9 - 5.8 - 10.08 = -5

(copied from another board)
 
Quote from SeventhCereal:
lol another loser gambler looking for confirmation. smalltime, can't even afford a website.
More...
Please contribute something of substance or go away. Trolls and idiots are not welcome here. Thank you for your kind consideration. :mad:
 
HON:

Back in Dec with HON in the low 60's HON announced a predicted attenuated 2013. I initiated a 70/72.5 bear call spread on the hypothesis that the stock would peak out below 70.

The stock did indeed drop a few points but has since advanced to the point where the 70 marker is threatened:

http://finance.yahoo.com/q/bc?t=1m&s=HON&l=off&z=l&q=b&c=&ql=1

I still think HON will peak at 70 (or pretty close) but, with GE perking along (and not being a gambler) I have put in an order to drop my spread at a net loss of about $50. I obviously misjudged HON.
 
KKD:

http://www.cnbc.com/id/100391632?__source=yahoo|headline|quote|text|&par=yahoo

http://www.bloomberg.com/news/2013-...ce-of-international-expansion.html?cmpid=yhoo

http://finance.yahoo.com/q/ks?s=KKD+Key+Statistics

http://finance.yahoo.com/q/bc?s=KKD&t=my&l=on&z=l&q=l&c=

http://finance.yahoo.com/q/bc?s=KKD&t=2y&l=on&z=l&q=l&c=

Trade:
With KKD at 11.94:
Long 8.00 call for a net debit of $440
Bull Call Spread: Buy Aug 8.00 call and sell Aug 10.00 call for a net debit of $290
Short 9.00 put for a net credit of $35
Bull Put Spread:Sell Aug 9.00 put and buy Aug 5.00 put for a net credit of $25
..............................................................P/L...............................................
Price........Long Call..........Bull Call Spread.....................Short Put.............Bull Put Spread
4...............(440)....................(290)................................(465).......................(375)
5...............(440)....................(290)................................(365).......................(375)
6...............(440)....................(290)................................(265).......................(275)
7...............(440)....................(290)................................(165).......................(175)
8...............(440)....................(290).................................(65)..........................(75)
9...............(340)....................(190)..................................35.............................25
10.............(240).....................(90)...................................35.............................25
11.............(140).....................10.....................................35.............................25
12..............(40).....................110....................................35.............................25
13.............. 60......................110....................................35..............................25
14.............160......................110.....................................35.............................25
15.............260......................110.....................................35.............................25
 
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