Sinjjn Smythe

Sinjjn Smythe
Contributor since: 2012
Thanks Michael for your thoughts.
On my fifth round of buying and selling opposite puts and calls. Currently bought puts at 1.0750 EUR/USD. The range is tight, but small profits add up fast. Most trades last less than a week. Been getting small catalyst in either direction that makes trades work. Looking to start on oil and VIX since they are starting to gyrate wildly in both directions.
Good article. AAPL is too volatile for anything longer than 1-3 month covered calls. Its a great strategy with a shorter time frame. Sell some puts in low 90's. again 1-3 months out. Gotta do a lot work to find a good price point on calls or puts. Options are all about timing.
Solid article Eli, thanks.
Michael, been sitting on sidelines since I sold my USD calls at 1.0804. Didn't see EUR break 1.10 like every analyst predicted. So I bought today when it kept struggling at 1.0960's. Any thoughts on where USD is going near term from a technical standpoint? Thanks.
Well, looks like SA and ME oil partners are finally realizing the end of their oil Armageddon and monopoly has been head butted by Congress passing lifting of oil export ban. Look no further than WTI above Brent. I have been wondering what the choke hold on shale producer's oil not being refined. Well, well, the little ME oil Shits have controlling interests in US refineries and have been dumping much of their oil unto our refiners to prevent them from processing Shale oil in large quantities. Once export ban was lifted the Dutch took possession 600,000 crude Shale barrels.Word is everyone is lining up for Shale crude. No wonder WTI is above Brent since export ban lifted. Also oil rig counts rose by 15 rigs day before Congress lifted export ban and US crude oil inventories dropped by 5 million barrels just this week.
This the catalyst I have looking for in oil markets. If your are in ARP you can take slight breath. Watching the options come to life. Option guys are the insider pros of the markets. They are First in, First out. My ARP investment looks like it blinked a sign of life. RR quick, buy now. We know he will think himself out of it in the end and take it out on all of us investors.
Stay strong guys.
I buy puts. Only time I go naked is to sleep. ;)
Great research. That usually rewards those first in. are you completely out of arp?
Smart move Crusso. A few years back I bought some stock at .01 , 30,000 shares. Next day it went to $21! I sold at $19. because I panicked trying to sell. I don't do that kind of trading anymore. I leave those for RR, ;)
I always buy 100 shares no matter the price.
I always start with 100 shares no matter the price of the stock. I could not make the option hedge work with a smaller amount, which I normally would do on one hundred shares. The spreads were too wide and volume very small. I put almost no effort and now I barely look at the stock.
I hardly ever touch these penny stocks. The yield was so ridiculous (60%+) and the fundamentals solid (company hedges) that I thought, why not.
I never get greedy. If ARP survives I will grow this investment to first 1,000 free shares then 10,000 with little effort. I sleep well at night and never sweat down turns. I'm an investor not a gambler.
Buy 100 shares of a solid dividend stock, buy puts and sit back and let RR entertain you with his envy. ;)
RR, I will make this simple.
I bought 100 ARP @ around $2.30. Then bought 20 puts at .10 @ $2 Dec. Stocked dropped to $1.70. sold all puts @ .40. Bought another 100 shares and took the rest in cash from put sale. Then bought 20 $1 Dec puts @ .10 sold @ .15. when stock dropped to .80.
Sitting pretty collecting free shares.
Start with small position and when I win I take part of winnings and add to position and keep rest of cash.
That is how I trade. Never get greedy. Always First In, First out.
Problem now is no way to protect my free booty, so I will let it ride till they cut the dividend. No dividend, I'm gone. You gotta pay me to take a risk on all stocks.
Now, let's hear your ARP trade?
You never know. Something has to give soon. I think bankers will ultimately squeeze SA to tighten oil output to get additional capital. ARP is hedged for long haul, its why I stayed on. I've been hearing XOM has been quietly doing deals with Shale oil and gas producers by providing money in exchange for sweet output deals. Hopefully, ARP gets some of XOM's funds,so my monthly dividend grows.
2 dollar bill,
I think RR invested in ARP and lost his shirt and is taking it out on all ARP long investors.
Anyways, I enjoyed my additional 3.851 shares this month. Hopefully, these monthly distributions will continue for years to come. I like ARP. sticking with it. If I can figure a way to add additional shares with low risk I will.
Guys, Guys, Guys, I read the article and understood, especially since I been doing Mike's portfolio strategy since 1980.
I can tell you several things from three plus decades of portfolio DGI investing.
One, stay in the stock as long as management understands its business and sector environmental fundamentals are sound.
Two, because of PT use put options, SL are useless when things get super ugly and if you're an DGI you don't need SL.
Three, option strategies greatly increase the size of your portfolio with little risk.
All the loses you incurred on stocks that went south would have been your stars had you employed puts.
As I mentioned earlier, I bought ARP, 100 shares to test water. It tanked first time and my puts gave me cash equal to my purchase. Then when management cut the monthly dividend by 90% my second set of puts that I purchased from previous put winnings kicked in and gave me an additional free 100 shares. I kept the stock, because it still paying a 20%+ monthly dividend. I now own 203.851 shares free. I told everyone in an ARP article a month before to protect with puts. They didn't and lost their life savings, while I profited from the drop.
I'm an old dog that learned new option and trading tricks as I built my DGI portfolio.
Now, I also employ currency, bonds, index's, volatility and commodities to further protect and enhance my portfolio. Why, because the bigger my portfolio got, the more profound the loses became on unprotected securities.
You will learn the hard way what every large portfolio manager learns, risk management trumps everything.
Now, if any of you don't listen to my wisdom and experience when you text me for help over your ruinous losses, because you ignored my wisdom and experience I will charge you an up front fee of 10% to discuss your mess. Additional upfront fees to help clean your mess will follow.
Have a wonderful Christmas and New Year.
I do through Ameritrade. I received 3.851 shares on 200+ shares. My wet dream is they stay at .30 for next five years and pay monthly .01 dividend. hehehe.
Great article. I bought XOM on dip and enjoyed the first of many 4% dividends.
All of the above. I take stock instead of cash. If they survive those super cheap free penny shares will be worth a pretty $10. each. I wouldn't buy this stock at this point.
Instead of stop loss, I use a put on each dividend stock I buy at or near their yearly lows. Saved me on ARP recently. Got all my shares free and enjoying the 20% dividend each month. XOM I bought in high 60's, so I'm still in black, put hasn't kicked in.
Likewise, I trade upcoming catalysts.
Oil, Vix, Spy are starting to percolate again. EUR/USD is resting. BOJ wasn't enough. Maybe GBP/USD might jump.
You keep calling me a liar and just like your flippant articles you provide no backup and yet I've stated my buys and sells. What trades have you done.Heck, you asked me to point out a put before you wrote this piece and got angry when you didn't see I had answer your questions in comments to someone else.
Have you seen AAPL, IBM and XOM tanking since I asked you several weeks ago to write about them. They have massive underlying problems that are now just coming to light. AAPL was at $110 today from $120's, IBM was at $140's now $136 and XOM was $83 now $77 from $73 a few days ago.
Only liar here is you, because you have no stake in the game. I have stakes in everything I comment on. I risk real money, please tell us your stakes. What have you invested in? Do tell. Look at my comments you will see I trade and win in all areas, because I keep it simple stupid (KISS). You couldn't trade successfully if you were given insider info, because you think too much.
Trading is having knowledge and being proactive. Always be First In, First Out. Sounds simple, and it is if you've done your homework and have the balls to put your hard earned money on the line.
Now, go do some trade and post them, win or lose, doesn't matter, just be a man and risk you cry baby.
BTW, I'm being nice, in person I'm terrifying, that's why I ran a global company and you haven't.
Don't come back on here until you've done a trade, someone report this wannabe cry baby.
Mike great article, great portfolio, but ruinous trading strategy. Never do you buy dividend stocks at their highs. I'm surprised you are not in the broke farm.
Only buy in lots of a hundred for option strategies to protect and enlarge your position. Started with 100 SBUX and build from there.
Great idea, just need a solid trading strategy.
sold call position today for a nice profit.decided to sit out rest of trading day and see if new patterns are emerging. anything on your radar?
Sold calls today when EUR/USD hit 1.0804 and saw central banks adjusting to FED rate hike. Solid profit. Sitting out rest of trading looking to see next opportunity. Do you see anything?
Sold calls when EUR/USD hit $1.0804 today after noticing central banks adjusting to FED rate increase and comments. Sitting out till tomorrow to see if I spot something. Anyone see anything interesting?
Sold calls when EUR/USD hit $1.0804 repeatedly today. Nice profit. Thought two weeks ago FED would not raise rates on Dec. 16. Changed my mind when I saw central banks coordinated work and figured throw out my assumptions and follow them into USD. Now, where to go next? Anyone, have a clue?
Sold my calls when EUR/USD hit $1.0804 today. Too much movement and with central banks readjusting to FED figured time to sell position. Solid profit. Always First in, First out.
Gonna see what happens overnight.
Might buy oil since Congress is backing exporting domestic oil. Then again I already have nice cheap position in major and minor oil and gas players with high dividends that when oil rises I get double profits.
GBP/USD is looking interesting. Any thoughts on where I should look next? Thanks
Well, I got 3.385 shares from monthly distribution. Not bad, considering at $2.30 I got 4 shares. Hopefully they will keep .01 monthly distribution, unless they want to see their stock trading at .0001, enjoy the ride.
Was going to sell calls today when EUR/USD hit 1.0895, but decided to stay when it never got passed 1.1005. It's back down in 1.0898 territory. I think it will drift down into low 1.08 or mid 1.07, maybe even 1.05 if China does something stupid in China Sea. Any perspectives on your end from a technical front? thanks
Josh,
I don't gamble. I only buy when I see a clear opportunity. All of your statements above negate each other. No clear upside, therefore I wouldn't buy with RR's own SA articles residuals. hehehe
I'm holding my 200 free shares and should see at least 2.5 shares added tomorrow from distribution at 20%+.
I'm working on a way to profit additionally from ARP at this point. If it works I will detail it.
Don't buy today, even with RR's money, ;) brokers are having to buy stock for DRIPS from distribution yesterday. Hold tight and enjoy your 20%+ distribution. Hope they don't cut the dividend and end this crazy run. Coming up with way to extract more profit from ARP while its down. I will share if it works. Have a great day guys.