If the bottom of this down leg were to be somewhere between 37 to say 35.5, and would happen in next 0 to 2 days, how would the dec 39 calls do? They were trading around 0.40 at close today, and today's stock price bottom was around 37.
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My OPTION TRADES..... part 2
- Thread starter Put_Master
- Start date
Quote from Put_Master:
Today I closed the above $40 Naked call on $40 NTES for $0.95.
Initial credit $2.05.
Closing for $0.95.
Profit $1.10
Thus, my new BE price on this deteriorating $41 naked put NTES trade is now $39.4
I will be monitoring and evaluating for another naked call at an even lower strike in the days to come.
My goal is to lower my BE price even lower than the initial $38.45 above.
That means I'll be considering a $35 or $37 naked call strike in the days to come, if the stock trades closer to $38.
That will then become a covered call when my $41 naked NTES put, is put to me a week from friday.
Technically, there seems to be some support in the $37 - $37.50 area.... per the 2 year chart.
Hence the reason I closed the naked call when the stock traded at $37.50.
How do you handle V bottoms?
Today I initiated a new $37 NTES naked call for Jan.Quote from Put_Master:
Today I closed the above $40 Naked call on $40 NTES for $0.95.
Initial credit $2.05.
Closing for $0.95.
Profit $1.10
Thus, my new BE price on this deteriorating $41 naked put NTES trade is now $39.4
I will be monitoring and evaluating for another naked call at an even lower strike in the days to come.
My goal is to lower my BE price even lower than the initial $38.45 above.
That means I'll be considering a $35 or $37 naked call strike in the days to come, if the stock trades closer to $38.
That will then become a covered call when my $41 naked NTES put, is put to me a week from friday.
Technically, there seems to be some support in the $37 - $37.50 area.... per the 2 year chart.
Hence the reason I closed the naked call when the stock traded at $37.50.
Credit $2.40
Thus, my new break even price for this initial deteriorating $41 NTES December trade is now.... $37 minus all my naked call commissions.
Now I just have to hope NTES does not exceed $41 over the next 8 trading days.
If I'm correct over the next 8 trading days, I will have lowered my cost basis from an initial naked put at $41.... to a BE covered call I own at $37.
Initial naked put credit $0.50.... plus 1st naked call of $1.10..... plus 2nd naked call of $2.40 = $4
$41 - $4 = $37
Quote from tradingjournals:
If the bottom of this down leg were to be somewhere between 37 to say 35.5, and would happen in next 0 to 2 days, how would the dec 39 calls do? They were trading around 0.40 at close today, and today's stock price bottom was around 37.
The call did not rise much. Stock at 38.30, but the call rose only 0.30, volty must be declining significantly.
Quote from Put_Master:
Today I initiated a new $37 NTES naked call for Jan.
Credit $2.40
Thus, my new break even price for this initial deteriorating $41 NTES December trade is now.... $37 minus all my naked call commissions.
Now I just have to hope NTES does not exceed $41 over the next 8 trading days.
If I'm correct over the next 8 trading days, I will have lowered my cost basis from an initial naked put at $41.... to a BE covered call I own at $37.
Initial naked put credit $0.50.... plus 1st naked call of $1.10..... plus 2nd naked call of $2.40 = $4
$41 - $4 = $37
What is the time value left in your short put?
Sold puts on $22.5 VOLC for Jan.
Credit $0.50
Annualized % return...... 21%
BE price $22
Companies fundamentals indicate the stock is over valued.
Thus, this is mostly a technical trade, as I like the stong 2 year support just above $24, and again at my BE price of $22.
http://finance.yahoo.com/q/bc?s=VOLC&t=2y&l=on&z=l&q=b&c=
If stock breaks current support at 24 and again at 22, the next support is at $20, per the 5 year chart.
Credit $0.50
Annualized % return...... 21%
BE price $22
Companies fundamentals indicate the stock is over valued.
Thus, this is mostly a technical trade, as I like the stong 2 year support just above $24, and again at my BE price of $22.
http://finance.yahoo.com/q/bc?s=VOLC&t=2y&l=on&z=l&q=b&c=
If stock breaks current support at 24 and again at 22, the next support is at $20, per the 5 year chart.
I like the chart on your USO.Quote from probe1957:
SOLD Jan 30 put on USO for $.57.
Good catch.
Thanks for sharing it.
I will be analyzing the company and evaluating for a potential trade going foward.
Technically, I like these type chart patterns, as opposed to the chart patterns of the stocks danshsirley (oldnemesis) posts,... which are generally of stocks that have already had substancial prices rises.
Investing in stocks AFTER they have had sig price rises is not my thing.
I like the type chart of your USO. A beautiful long base of support.
Now the only question is, my timing for a strike/credit selection.
Again, thanks for sharing it.
Thanks.
To me it is a beautiful setup for selling a put at that strike. It is possible but not terribly likely that I will be put the stock but if I am I think it is very unlikely that I will get hurt. Of course people have gone broke when very unlikely scenarios played out against them.
To me it is a beautiful setup for selling a put at that strike. It is possible but not terribly likely that I will be put the stock but if I am I think it is very unlikely that I will get hurt. Of course people have gone broke when very unlikely scenarios played out against them.