My OPTION TRADES..... part 2

Sold puts on $30 NUS for Jan.
Credit $0.35
Annualized % return........... 14%
otm safety cushion... 24%

The companies fundamentals are mostly very reasonable.
The company is reasonably valued at my BE price of $29.65, and it is also financially healthy and stable, in terms of debt management.

There is reasonable tech support in the $39 - $40 area.
Again in the 35 - 36 area.
And again at my strike of $30..... per the 5 year chart below:
http://finance.yahoo.com/q/bc?s=NUS&t=5y&l=on&z=l&q=b&c=

The stock has been dropping because of the sector it is in, and the related news of that sector.
Also because earnings come out after the close today.
Hence, I am taking a chance. And I'll know the result of that chance shortly.
But I'm taking that chance with a 24% otm cushion, on a solid company.
An even larger otm cushion at my BE price of $29.65.
Stock currently trading between $39.5 - $40.
 
PM,

Have you looked at QCOR at all? It seems to have some good fundamentals, coming back from a recent slide. Nice support around $25 with a good return for the Jan 25 puts.
 
Quote from cipherscribe:

PM,

Have you looked at QCOR at all? It seems to have some good fundamentals, coming back from a recent slide. Nice support around $25 with a good return for the Jan 25 puts.
More...
I spent about 10 seconds looking at it .
In that short time, I noticed 50% of it's shares were being shorted, and in the past 3 months, the stock has run up from $18 to $30.
I want to know when a stock has dropped from $30 to $18. Not the other way around.

http://finance.yahoo.com/q/bc?s=QCOR&t=3m&l=on&z=l&q=b&c=
 
Quote from Put_Master:

Sold puts on $30 NUS for Jan.
Credit $0.35
Annualized % return........... 14%
otm safety cushion... 24%

The companies fundamentals are mostly very reasonable.
The company is reasonably valued at my BE price of $29.65, and it is also financially healthy and stable, in terms of debt management.

There is reasonable tech support in the $39 - $40 area.
Again in the 35 - 36 area.
And again at my strike of $30..... per the 5 year chart below:
http://finance.yahoo.com/q/bc?s=NUS&t=5y&l=on&z=l&q=b&c=

The stock has been dropping because of the sector it is in, and the related news of that sector.
Also because earnings come out after the close today.
Hence, I am taking a chance. And I'll know the result of that chance shortly.
But I'm taking that chance with a 24% otm cushion, on a solid company.
An even larger otm cushion at my BE price of $29.65.
Stock currently trading between $39.5 - $40.
More...
My error. I was thinking of another stock I was considering (TIBX). Got them mixed up.
NUS doesn't report earnings until late Jan,.... after the contract has expired.
Not after the close, as i incorrectly stated above.
 
Quote from Put_Master:

Sold puts on $30 NUS for Jan.
Credit $0.35
Annualized % return........... 14%
otm safety cushion... 24%

The companies fundamentals are mostly very reasonable.
The company is reasonably valued at my BE price of $29.65, and it is also financially healthy and stable, in terms of debt management.

There is reasonable tech support in the $39 - $40 area.
Again in the 35 - 36 area.
And again at my strike of $30..... per the 5 year chart below:
http://finance.yahoo.com/q/bc?s=NUS&t=5y&l=on&z=l&q=b&c=

The stock has been dropping because of the sector it is in, and the related news of that sector.
Also because earnings come out after the close today.
Hence, I am taking a chance. And I'll know the result of that chance shortly.
But I'm taking that chance with a 24% otm cushion, on a solid company.
An even larger otm cushion at my BE price of $29.65.
Stock currently trading between $39.5 - $40.
More...

I find it incoherent to have the 0.35 premium at strike 30, and at the same time a support in the $39-$40 area. Since I do not think the market is incoherent, I am pondering the statement "There is reasonable tech support in the $39 - $40 area." ?
 
Quote from tradingjournals:

I find it incoherent to have the 0.35 premium at strike 30, and at the same time a support in the $39-$40 area. Since I do not think the market is incoherent, I am pondering the statement "There is reasonable tech support in the $39 - $40 area." ?
More...

What is incoherent, is your taking "one line out of context" of the paragraph it was part of.
Below is the entire paragraph:
<<< There is reasonable tech support in the $39 - $40 area.
Again in the 35 - 36 area.
And again at my strike of $30..... per the 5 year chart below:>>>
http://finance.yahoo.com/q/bc?s=NUS...l=on&z=l&q=b&c=

What is also incoherent, is your associating a stocks credit with it's tech support.

What is also incoherent, is your inability to look at the 1 , 2 or 5 year chart, and not observe, that with the exception of a brief period within the past 7 month period,... that the stock did in fact hold support in that 39 - 40 area, as I stated.
Hence, my expectation that it might hold that $39 - $40 area for one more month,... as it held for the past 7 months.
But if not, I discussed 2 other tech supported areas below it, but above by BE price of $29.65, per the 5 year chart.

I believe the reason for the $0.35 credit, for a one month trade, on a $30 strike, of a stock trading at $40,... is because of the current "uncertainty and volatility" of the sector,.... which you may recall, I mentioned in my initial post.

My 3 comments above refering to tech support, were to explain to why I selected the strike I did.
It had nothing to do with credit, or the potential 14% return of the trade.
 
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