Fluor Corporation: Engineering Total Return [View article]
The calls and puts sold should read $35 strike prices - not $45.
I am waiting for an uptick to sell my own calls (for even better upside)but I like to show the whole trade that can be done right at the time of my writing.
Except in a non-margin type account you can use paid-up marginable securities to write against. That means the best case scenario would not require any additional cash and the stated return is accurrate.
If you were 'put' on the extra shares your returns would, by definition, be lower due to the additional cash needed.
Playing Defense with General, Northrop and Raytheon [View article]
Raytheon board hikes dividend 11%
RTN 37.23, +1.20, +3.3%) said late Wednesday its board raised the dividend 11%, resulting in a quarterly dividend of 31 cents and an annual dividend of $1.24. The quarterly dividend is payable May 1 to shareholders of record as of April 7.
It's official: Treasury Announces Auto Supplier Support Program. Here's the full fact sheet (.pdf). "The program will provide suppliers with access to government-backed protection that money owed to them for the products they ship will be paid no matter what happens to the recipient car company. Participating suppliers will also be able to sell their receivables into the program at a modest discount." [View news story]
This is just another 'backdoor' $5 billion unsecured loan to the auto companies.
We taxpayers are once again on the hook for all losses with zero upside for our risk.
In a news conference, Rep. Frank says he's "very skeptical" that retaining the (AIG) people who made these mistakes is a good idea. "We're the owner," of AIG, he says, "and it's time for us to exercise our ownership rights." [View news story]
Fluor Corporation: Engineering Total Return [View article]
I am waiting for an uptick to sell my own calls (for even better upside)but I like to show the whole trade that can be done right at the time of my writing.
Thanks for your nice comments.
Ciber: An IT Bargain with Big Upside [View article]
Why Selling Puts Is Not Collecting Free Money [View article]
If the price of the Island goes down to anything greater than $2,950,000 from the original $3,500,000 level the put seller would still be profitable.
Thus, even a drop of $550,000 or (-15.71%) would not lead to a loss for the option seller in your example.
So... The put seller wins if:
The value goes up.
The value stays the same.
The value drops by up to 15.6% of the original price.
That covers most statistically probably events and looks like a good risk under most circumstances.
Time to Cash Your Paychex [View article]
Except in a non-margin type account you can use paid-up marginable securities to write against. That means the best case scenario would not require any additional cash and the stated return is accurrate.
If you were 'put' on the extra shares your returns would, by definition, be lower due to the additional cash needed.
Gentiva Health Services: Low Risk, Good Return Options Play [View article]
NASDAQ OMX Group: A Levered Play on a Market Recovery [View article]
The puts would be 'exercised' by their owners.
They would be 'assigned' to their sellers.
So what? The result [in this example] is the same regardless of whether you speak in terms of the holder or writer of the options.
Time to Cash Your Paychex [View article]
You are correct. The best case return would be 40% and the static return would be 32.5%- both better than the indicated numbers.
I shouldn't write these up so late at night. Thanks for the inout.
Time to Cash Your Paychex [View article]
This trade was very conservative.
You could use $30 strikes for 2011 for much more upside.
Is it Time to Jump Back into the Market? [View article]
Still, there are many bargains to be had and little competition from fixed income rates that are artificially low due to Fed actions.
Playing Defense with General, Northrop and Raytheon [View article]
RTN 37.23, +1.20, +3.3%) said late Wednesday its board raised the dividend 11%, resulting in a quarterly dividend of 31 cents and an annual dividend of $1.24. The quarterly dividend is payable May 1 to shareholders of record as of April 7.
Grupo Aeroportuario: Cleared for Takeoff [View article]
Value Line [written about in a separate article] does not offer option trading but I like the shares for total return.
Darden Surges on Positive Earnings Report [View article]
It's official: Treasury Announces Auto Supplier Support Program. Here's the full fact sheet (.pdf). "The program will provide suppliers with access to government-backed protection that money owed to them for the products they ship will be paid no matter what happens to the recipient car company. Participating suppliers will also be able to sell their receivables into the program at a modest discount." [View news story]
We taxpayers are once again on the hook for all losses with zero upside for our risk.
In a news conference, Rep. Frank says he's "very skeptical" that retaining the (AIG) people who made these mistakes is a good idea. "We're the owner," of AIG, he says, "and it's time for us to exercise our ownership rights." [View news story]
Calamos: It's Delightful, It's Delovely, It's Delevered [View article]
Calamos Asset Management, Inc. [NDQ:CLMS]
March 16, 2009 close: $3.56 /share
52-week range: $2.55 (Nov. 21, 2008) - $24.00 (Sep. 19, 2008)
Dividend: $0.055 quarterly = 6.18% current yield