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Kenneth Roberts  

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  • SPY Weekly Bear Call Spread [View article]
    Monthly jobs report was worse than anticipated. This spread will expire worthless for the maximum gain of 0.86 cents.
    May 4, 2012. 02:20 PM | 1 Like Like |Link to Comment
  • SPY Weekly Bear Call Spread [View article]
    Thursday, May 3rd 7:07am PDT; the spread had narrowed to 0.49 cents. I'd take some or all profits off the table. If the non-farm payrolls are better than expected tomorrow morning and the market rallies sharply, the profits from this trade could disappear quickly.
    May 3, 2012. 10:10 AM | Likes Like |Link to Comment
  • SPY Weekly Bear Call Spread [View article]
    This trade is 2 days from expiration. On 5-2-12 at 7:10 am PDT, the spread has narrowed from 0.86 cents to 0.54 cents and may be a good place to lock in some partial profits.
    May 2, 2012. 10:10 AM | Likes Like |Link to Comment
  • Playing Apple Earnings With A Covered Call [View article]
    Apple reported yesterday after the close. Today it opened at $615.99, this covered call trade has worked nicely so far. If you sold the $610 call for $25.70 your max gain will be $635.70 if AAPL stays above $610.
    Apr 25, 2012. 10:21 AM | Likes Like |Link to Comment
  • SPY Calendar Put Spread [View article]
    As of 11:11 am PDT, this spread has widened to $2.00 and may be a good place to take profits or some partial profits.
    Apr 19, 2012. 02:12 PM | Likes Like |Link to Comment
  • SPY Calendar Put Spread [View article]
    This spread is showing a profit it's currently at $1.90 after the release of the existing home sales data.
    Apr 19, 2012. 10:09 AM | Likes Like |Link to Comment
  • SPY Calendar Put Spread [View article]
    My bad should be April 21st. As far as selling the May 137 calls, that would be to trade into a conversion if you decide to take assignment on the short 137 puts. With a calendar spread you can take advantage of volatility skews, so it's not just an expectation of how the underlying will move, but what the implied volatility will do. At the the first expiration the IV of the short option will collapse. This spread is still priced at about $1.70 after two days.
    Apr 18, 2012. 03:43 PM | Likes Like |Link to Comment
  • Apple Calendar Put Spread [View article]
    This trade ended on April 13th and yielded a nice profit prior to expiration. With delta neutral trades you want the price to stay flat and either have to adjust the delta with price movement or exit.
    Apr 18, 2012. 09:55 AM | Likes Like |Link to Comment
  • Apple Calendar Put Spread [View article]
    Sorry about the graphs, I thought I had deleted one and inserted a better one, but ended up with two of the same. I'll see if I can update them. As of today at 7:30 am PDT the trade is showing a profit of $255 per contract.
    Apr 11, 2012. 10:25 AM | Likes Like |Link to Comment
  • Trading A Possible Oil Spike With Options [View article]
    Bill, the day you posted that the USO closed at $37.38. On March 1st, 2012 it closed at $41.75.
    Mar 31, 2012. 07:08 PM | Likes Like |Link to Comment
  • Using Call And Put Options To Pay For Stock And ETF Positions [View article]
    Talk to your tax advisor for tax related questions, but here's how it works, I have a brokerage account with a discount broker and am a member of an LLC. When I file the returns, for the the brokerage account, I use the 1099, schedule C and report every taxable transaction, have to pay attention to the wash sale rule, etc. In the LLC I can have any number of trades throughout the year and the profit or loss gets reported once per year on the K-1. For my reporting purposes the K-1 is much simpler.
    Feb 1, 2012. 11:02 AM | Likes Like |Link to Comment
  • Using Call And Put Options To Pay For Stock And ETF Positions [View article]
    It can be done in a qualified account with cash secured puts, if you're a trader you can join or start an LLC and get report on a K-1. Fees vary from broker to broker and should be considered with any strategy, I've personally found it to be a viable plan even in taxable accounts.
    Jan 31, 2012. 10:06 AM | Likes Like |Link to Comment
  • Trading A Possible Oil Spike With Options [View article]
    The reason to set the position up for a January 2013 expiration is that if the oil spike occurrs you don't know when it will occur, if the spike were to happen next week or next month, you can take your profits early.
    Jan 9, 2012. 01:17 PM | Likes Like |Link to Comment
  • Trading A Possible Oil Spike With Options [View article]
    That's really the beauty of using options, there are limitless ways to build a position to achieve what you want it to. There is no limit to the creativity one can apply. I wrote this using a long term traditional synthetic long stock, but you could also use some type of calendar spread. The real advantages of having the obligation long term are trading costs and taxes, rolling on a shorter term basis increases trading costs and for taxable accounts makes reporting more complex and you can always alter the position or close it anytime if conditions change. As far as the oil forecast goes, I suggest you read the Pimco article thoroughly, if you don't think oil can go any higher, you should sell naked calls.
    Jan 9, 2012. 10:29 AM | Likes Like |Link to Comment
  • Using Call And Put Options To Pay For Stock And ETF Positions [View article]
    No problem, one thing about using options that is always challenging and can be fun is that there is virtually no limit to the creativity that can be put into strategies. There are almost endless possibilities and variations.
    Jan 4, 2012. 01:32 PM | 1 Like Like |Link to Comment
COMMENTS STATS
48 Comments
8 Likes