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David Zanoni
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David Zanoni offers the Momentum Stocks at a Reasonable Price subscription service. He is ranked in the top 1% of analysts on David is a graduate of Rutgers University with a B.S. in Management. He is an independent long term investor of quality stocks and uses options for... More
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Momentum Stocks at a Reasonable Price
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  • Achieve Your Dreams

    Oct 30 11:27 AM | Link | Comment!
  • How To Use High Probability Option Put Writes (Sells) For Steady Income Or To Buy Stocks At A Discount

    Put writes or selling put options can be a less-risky way to trade options. They have a higher probability of success than merely buying call options. You many have heard that most options expire worthless. That is true when considering all of the options that are available. Many options have strike prices that are out of the money and will never make it 'in the money'. As a result, they expire worthless. The put write strategy benefits from this because it involves selling an out of the money put that we expect to expire worthless. By selling a put option, the seller receives the premium that is sold. So, if the put is selling at $3.00 which represents 100 shares, the seller would receive $300 in his/her account upon selling the put.

    You do need to have enough cash available in your account to cover buying 100 shares of the stock for every put that you sell. So, I would recommend only selling puts on companies that you would be willing to own. The reason for this is because if the stock price falls to the strike price, you can be assigned the stock (forced to buy 100 shares).

    Here is an example: Company XYZ stock is selling for $50 per share. So, you would need to $5000 of cash available in your account plus the amount for commissions to do a put write. The $47 strike price put option is selling for $1.50 and expires in one month. If you sell the put option, you'll get $150 credited to your account. If the stock price remains above $47 by expiration, you keep the premium and can consider selling another for the following month.

    If the stock price falls to $47 or below, you can be assigned the stock. This means that you'll be forced to buy 100 shares of XYZ at $47. The good news is that you like the company and are willing to buy that stock. You still keep the $150 that was credited to your account and you bought the stock at a 9% discount to the $50 price if you include the premium that was credited to your account. So, you bought 100 shares of XYZ for $4550 instead of $5000, saving $450 or 9% due to the volatility of the market.

    I offer weekly put option trades as part of my Momentum at a Reasonable Price subscription service. This is just a small part of my service. Here is more information on the service:

    Oct 17 9:32 AM | Link | Comment!
  • Buying Opportunity For Apple's Stock

    Sep 25 10:24 AM | Link | Comment!
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  • The Momentum Weekly Report which includes a high growth stock/market commentary is now ready for subscribers.
    about 2 hours ago
  • The Momentum Weekly Report is now available for subscribers here:
    Nov 22, 2015
  • Talk about a turn of events: McDonalds' 4% comp store sales increase was higher than Chipotle's 2.6% increase. $MCD $CMG
    Oct 22, 2015
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