Nick Chiu's Instablog Senior Options Trading Strategist at Optionity, MBA. Our trading approach starts with the fundamentals, then through short-term technical analysis, to finally leverage options trading (with the combination of long and short positions) to achieve favorable risk and reward ratio trading plays. Our research mainly focuses on the long-term developing trends for the demographics and how these trends impact different sectors and industries. Our main covering sectors are health care, telecommunication, and energy. Optionity Daily Report (including daily options recap and Core-20 portfolio) will be published and please visit our website at www.optionity.com Our main strategy is "Solid Stock + Cash Flow + Options" "I have the option to give up, but I will never give up my options" Nick Chiu http://seekingalpha.com/author/nick-chiu/instablog Optionity Daily Report 05/15/2013 http://seekingalpha.com/instablog/4727071-nick-chiu/1862581-optionity-daily-report-05-15-2013?source=feed 1862581 Date: May 15, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 87, which had increased from the previous day closing of 86. As reported by CBOE, the total put/call ratio was 0.78 for the day. The index put/call ratio was 0.69, and the equity put/call ratio was 0.52. The CBOE volatility index (VIX) put/call ratio was 0.37. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)

Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has not changed and still indicates a bearish lean. RSI (14) closed at 43.53 (previous closing of 43.53). MACD is closing at -0.013. The market is expected to decline if both MACD and RSI are bullish, right now both are bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened lower and closed higher at $166.15 (+0.53%). The volume was 28.52M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.750. SPY is currently trading above its 200-day MA of $122.28 and its 50-day MA of $144.78. RSI (14) increased and closed at 76.79.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> Wed, 15 May 2013 19:26:44 -0400 Date: May 15, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 87, which had increased from the previous day closing of 86. As reported by CBOE, the total put/call ratio was 0.78 for the day. The index put/call ratio was 0.69, and the equity put/call ratio was 0.52. The CBOE volatility index (VIX) put/call ratio was 0.37. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)

Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has not changed and still indicates a bearish lean. RSI (14) closed at 43.53 (previous closing of 43.53). MACD is closing at -0.013. The market is expected to decline if both MACD and RSI are bullish, right now both are bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened lower and closed higher at $166.15 (+0.53%). The volume was 28.52M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.750. SPY is currently trading above its 200-day MA of $122.28 and its 50-day MA of $144.78. RSI (14) increased and closed at 76.79.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> spy axp chl csco f ge intc ko mdlz mmm msft orcl pep pfe qcom syy teva tsm utx vod wm daily report options report options portfolio core-20 credit put strategy daily performance Optionity Daily Report 05/14/2013 http://seekingalpha.com/instablog/4727071-nick-chiu/1858351-optionity-daily-report-05-14-2013?source=feed 1858351 Date: May 14, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 87, which had increased from the previous day closing of 84. As reported by CBOE, the total put/call ratio was 0.81 for the day. The index put/call ratio was 0.96, and the equity put/call ratio was 0.52. The CBOE volatility index (VIX) put/call ratio was 0.78. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has decreased and still indicates a slightly bearish lean. RSI (14) closed at 43.53 (previous closing of 47.12). MACD is closing at -0.013. The market is expected to decline if both MACD and RSI are bullish, right now both are bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened slightly higher and closed strongly higher at $165.28 (+0.08%). The volume was 27.99M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.694. SPY is currently trading above its 200-day MA of $122.28 and its 50-day MA of $144.77. RSI (14) increased and closed at 76.02.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> Tue, 14 May 2013 20:07:16 -0400 Date: May 14, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 87, which had increased from the previous day closing of 84. As reported by CBOE, the total put/call ratio was 0.81 for the day. The index put/call ratio was 0.96, and the equity put/call ratio was 0.52. The CBOE volatility index (VIX) put/call ratio was 0.78. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has decreased and still indicates a slightly bearish lean. RSI (14) closed at 43.53 (previous closing of 47.12). MACD is closing at -0.013. The market is expected to decline if both MACD and RSI are bullish, right now both are bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened slightly higher and closed strongly higher at $165.28 (+0.08%). The volume was 27.99M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.694. SPY is currently trading above its 200-day MA of $122.28 and its 50-day MA of $144.77. RSI (14) increased and closed at 76.02.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> spy axp chl csco f ge intc ko mdlz mmm msft orcl pep pfe qcom syy teva tsm utx vod wm daily report options report options portfolio core-20 credit put strategy daily performance Optionity Daily Report 05/13/2013 http://seekingalpha.com/instablog/4727071-nick-chiu/1854361-optionity-daily-report-05-13-2013?source=feed 1854361 Date: May 13, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 84, which had increased from the previous day closing of 79. As reported by CBOE, the total put/call ratio was 0.87 for the day. The index put/call ratio was 0.96, and the equity put/call ratio was 0.60. The CBOE volatility index (VIX) put/call ratio was 0.43. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)

Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has increased slightly but still indicates a slightly bearish lean. RSI (14) closed at 47.12 (previous closing of 46.59). MACD is closing at -0.007. The market is expected to decline if both MACD and RSI are bullish, right now both are slightly bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened lower and closed slightly higher at $163.54 (+0.08%). The volume was 18.30M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.586. SPY is currently trading above its 200-day MA of $122.27 and its 50-day MA of $144.73. RSI (14) increased and closed at 74.39.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

*new position opened/closed

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> Mon, 13 May 2013 18:31:23 -0400 Date: May 13, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 84, which had increased from the previous day closing of 79. As reported by CBOE, the total put/call ratio was 0.87 for the day. The index put/call ratio was 0.96, and the equity put/call ratio was 0.60. The CBOE volatility index (VIX) put/call ratio was 0.43. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)

Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has increased slightly but still indicates a slightly bearish lean. RSI (14) closed at 47.12 (previous closing of 46.59). MACD is closing at -0.007. The market is expected to decline if both MACD and RSI are bullish, right now both are slightly bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened lower and closed slightly higher at $163.54 (+0.08%). The volume was 18.30M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.586. SPY is currently trading above its 200-day MA of $122.27 and its 50-day MA of $144.73. RSI (14) increased and closed at 74.39.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

*new position opened/closed

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> spy axp chl csco f ge intc ko mdlz mmm msft orcl pep pfe qcom syy teva tsm utx vod wm daily report options report options portfolio core-20 credit put strategy daily performance Optionity Daily Report 05/10/2013 http://seekingalpha.com/instablog/4727071-nick-chiu/1846751-optionity-daily-report-05-10-2013?source=feed 1846751 Date: May 10, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 81, which had increased from the previous day closing of 74. As reported by CBOE, the total put/call ratio was 0.75 for the day. The index put/call ratio was 0.64, and the equity put/call ratio was 0.59. The CBOE volatility index (VIX) put/call ratio was 0.11. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has increased slightly but still indicates a slightly bearish lean. RSI (14) closed at 46.59 (previous closing of 46.16). MACD is closing at -0.003. The market is expected to decline if both MACD and RSI are bullish, right now both are slightly bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened nearly flat and closed higher at $163.41 (+0.29%). The volume was 22.70M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.554. SPY is currently trading above its 200-day MA of $121.89 and its 50-day MA of $143.97. RSI (14) increased and closed at 74.26.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> Fri, 10 May 2013 19:15:31 -0400 Date: May 10, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 81, which had increased from the previous day closing of 74. As reported by CBOE, the total put/call ratio was 0.75 for the day. The index put/call ratio was 0.64, and the equity put/call ratio was 0.59. The CBOE volatility index (VIX) put/call ratio was 0.11. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) remains bearish. RSI (14) has increased slightly but still indicates a slightly bearish lean. RSI (14) closed at 46.59 (previous closing of 46.16). MACD is closing at -0.003. The market is expected to decline if both MACD and RSI are bullish, right now both are slightly bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened nearly flat and closed higher at $163.41 (+0.29%). The volume was 22.70M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.554. SPY is currently trading above its 200-day MA of $121.89 and its 50-day MA of $143.97. RSI (14) increased and closed at 74.26.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> spy axp chl csco f ge intc ko mdlz mmm msft orcl pep pfe qcom syy teva tsm utx vod wm daily report options report options portfolio core-20 credit put strategy daily performance Optionity Daily Report 05/09/2013 http://seekingalpha.com/instablog/4727071-nick-chiu/1843471-optionity-daily-report-05-09-2013?source=feed 1843471 Date: May 9, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 74, which was lower as compared to the previous day closing of 77. As reported by CBOE, the total put/call ratio was 1.00 for the day. The index put/call ratio was 1.02, and the equity put/call ratio was 0.58. The CBOE volatility index (VIX) put/call ratio was 0.50. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) is turning bearish. RSI (14) has decreased and indicates a slightly bearish lean. RSI (14) closed at 46.16 (previous closing of 49.86). MACD is closing at -0.004. The market is expected to decline if both MACD and RSI are bullish, right now both are slightly bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened flat and closed lower at $162.93 (-0.25%). The volume was 23.73M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend but the MACD Histogram decreased in the last trading day and closed at 0.520. SPY is currently trading above its 200-day MA of $121.89 and its 50-day MA of $143.96. RSI (14) decreased and closed at 73.74.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

*New position opened

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> Thu, 09 May 2013 19:44:40 -0400 Date: May 9, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 74, which was lower as compared to the previous day closing of 77. As reported by CBOE, the total put/call ratio was 1.00 for the day. The index put/call ratio was 1.02, and the equity put/call ratio was 0.58. The CBOE volatility index (VIX) put/call ratio was 0.50. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) is turning bearish. RSI (14) has decreased and indicates a slightly bearish lean. RSI (14) closed at 46.16 (previous closing of 49.86). MACD is closing at -0.004. The market is expected to decline if both MACD and RSI are bullish, right now both are slightly bearish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened flat and closed lower at $162.93 (-0.25%). The volume was 23.73M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend but the MACD Histogram decreased in the last trading day and closed at 0.520. SPY is currently trading above its 200-day MA of $121.89 and its 50-day MA of $143.96. RSI (14) decreased and closed at 73.74.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

*New position opened

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> spy axp chl csco f ge intc ko mdlz mmm msft orcl pep pfe qcom syy teva tsm utx vod wm daily report options report options portfolio core-20 credit put strategy daily performance Optionity Daily Report 05/08/2013 http://seekingalpha.com/instablog/4727071-nick-chiu/1839141-optionity-daily-report-05-08-2013?source=feed 1839141 Date: May 8, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 77, which remained the same as the previous day closing of 73. As reported by CBOE, the total put/call ratio was 0.88 for the day. The index put/call ratio was 0.88, and the equity put/call ratio was 0.66. The CBOE volatility index (VIX) put/call ratio was 0.52. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) is picking up and turning bullish. RSI (14) has increased but still indicates a slightly bearish lean. RSI (14) closed at 49.86 (previous closing of 48.45). MACD is closing at 0.003. The market is expected to decline if both MACD and RSI are bullish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened lower and closed higher at $163.34 (+0.44%). The volume was 23.41M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.549. SPY is currently trading above its 200-day MA of $121.89 and its 50-day MA of $143.97. RSI (14) increased and closed at 74.19.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> Wed, 08 May 2013 18:25:26 -0400 Date: May 8, 2013

Daily Market Statistics

Source: Barrons

S&P 500 5-Day Daily Chart

(click to enlarge)

Source: Google Finance

Economic Calendar

(click to enlarge)

Source: Briefing

Options Market Recap

The market sentiment was driven by greed with Fear & Greed Index at 77, which remained the same as the previous day closing of 73. As reported by CBOE, the total put/call ratio was 0.88 for the day. The index put/call ratio was 0.88, and the equity put/call ratio was 0.66. The CBOE volatility index (VIX) put/call ratio was 0.52. The stocks with unusual call activities had been identified through our daily options scanning process, with the scanning criteria where the daily call option volume ratio was above 2.00 (2x of the average call option volume) with a call option volume above 20,000. Unusual option activities can be an indicator or precursor of a major movement for the underlying stock.

(click to enlarge)Source: Schaeffer's Research

Stocks with Unusual Volume

Below is the top 10 list obtained from AVAFIN.com for options alert with the following screening criteria:

  1. Unusual Volume
  2. 300% spike in volume
  3. In all sectors and all industries

(click to enlarge)

Source: AVAFIN.COM

Market Volatility and Analysis

(click to enlarge)

For Option Equity Put/Call Ratio, the MACD (12, 26, 9) is picking up and turning bullish. RSI (14) has increased but still indicates a slightly bearish lean. RSI (14) closed at 49.86 (previous closing of 48.45). MACD is closing at 0.003. The market is expected to decline if both MACD and RSI are bullish. Watch out for "Sell in May and Go Away" effect.(click to enlarge)

SPDR S&P 500 ETF Trust (SPY)

SPY opened lower and closed higher at $163.34 (+0.44%). The volume was 23.41M. On weekly basis, the MACD (12, 2, 9) is showing a bullish trend and the MACD Histogram increased in the last trading day and closed at 0.549. SPY is currently trading above its 200-day MA of $121.89 and its 50-day MA of $143.97. RSI (14) increased and closed at 74.19.

Optionity Core-20 Options Portfolio (Credit Put Strategy)

Stock criteria:

  1. Large Cap with low beta
  2. Fair/Under-valued
  3. Consistent, strong earnings
  4. Dividend distribution
  5. High liquidity, large volume
  6. Good/strong economic moat

This options portfolio consists of 20 core stocks. The portfolio will employee mainly the credit put strategy with the primary objective of generating consistent cash flow. The portfolio focuses on 1) sufficient sector diversification 2) risk/reward ratio control 3) margin of safety by leveraging options.

Daily portfolio performance will be updated at Seeking Alpha Instablog and Optionity.com.

Transaction details will be updated whenever new position is opened or the existing position is closed/expired/adjusted.

Core-20 Stocks Update

(click to enlarge)

Source: Seeking Alpha

Existing Position(s):

For the complete list, please visit Optionity.com

Closed Position(s):

GLW credit short put spread $11/$12 Mar. 15, 2013 ($0.23 credit, established on February 7, 2013) => Closed short put $12 at $0.07 on February 20, 2013. $0.16 profit (20.78% Return on Margin, 13 days, including non-trading days). $11 put position was sold for $0.04 on February 26, 2013, adding $0.04 to the total profit.

ORCL credit short put spread $29/$31 May 17, 2013 ($0.32 credit, established on March 21, 2013) => Closed position on April 11, 2013. $0.23 profit (13.69% Return on Margin, 21 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.55 credit, established on March 6, 2013) => Closed position on April 16, 2013. $0.15 profit (7.69% Return on Margin, 40 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.75 credit, established on March 19, 2013) => Closed position on April 16, 2013. $0.35 profit (20% Return on Margin, 27 days, including non-trading days).

CHL credit short put spread $50/$52.5 April 19, 2013 ($0.30 credit, established on February 25, 2013) => Closed short put $52.5 put at $0.05 on April 19, 2013. $0.25 profit (11.36% return on margin, 55 days, including non-trading days)

TEVA credit short put spread $35/$37.5 April 20, 2013 ($0.19 credit, established on March 7, 2013) => Closed short put $37.5 at $0.02 on April 19, 2013. $0.17 profit (7.36% return on margin, 42 days, including non-trading days)

AKAM credit short put spread $30/$32 May 17, 2013 ($0.38 credit, established on February 13, 2013) => Closed AKAM short put $32 at $0.03 on April 25, 2013. $0.35 profit (21.60% return on margin, 72 days, including non-trading days)

ORCL credit short put spread $29/$31 May 17, 2013 ($0.38 credit, established on March 25, 2013) => Closed ORCL short put $31 at $0.06 on May 1, 2013. $0.32 profit (19.75% return on margin, 36 days, including non-trading days)

QCOM credit short put spread $57.5/$60 May 17, 2013 ($0.30 credit, established on April 25, 2013) => Closed QCOM short put spread $29/$31 at $0.06 on May 3, 2013. $0.24 profit (10.91% return on margin, 8 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.51 credit, established on February 14, 2013) => Closed NOV short put spread $60/$62.5 at $0.14 on May 3, 2013. $0.37 profit (18.60% return on margin, 79 days, including non-trading days)

NOV credit short put spread $60/$62.5 May 17, 2013 ($0.36 credit, established on March 19, 2013) => Closed NOV short put spread $60/$62.5 at $0.156 on May 3, 2013. $0.204 profit (9.53% return on margin, 44 days, including non-trading days)

TEVA credit short put spread $35/$37.5 May 18, 2013 ($0.32 credit, established on April 1, 2013) => Closed TEVA short put spread $35/$37.5 at $0.13 on May 3, 2013. $0.19 profit (8.72% return on margin, 32 days, including non-trading days)

NOK credit short put spread $2.5/$3.5 May 17, 2013 ($0.37 credit, established on April 18, 2013) *High Reward/High Risk Position => Reduced the position by 1/3, closed at $0.23 with a profit on May 3, 2013. => Closed the remaining NOK short put spread $2.5/$3.5 at $0.08 on May 7, 2013. $0.29 profit (46% return on margin, 19 days, including non-trading days)

WFM credit put spread $80.5/$83 May 17, 2013 ($0.68 credit, established on March 13, 2013) => Closed WFM short put $83 May 17, 2013 at $0.05 on May 8, 2013. $0.63 profit (34.62% return on margin, 56 days, including non-trading days)

All rights reserved © Optionity 2013

]]> spy axp chl csco f ge intc ko mdlz mmm msft orcl pep pfe qcom syy teva tsm utx vod wm daily report options report options portfolio core-20 credit put strategy daily performance