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Fear & Greed Trader
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Independent Financial Advisor / Professional Investor- with over 25 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice and Experience to produce Portfolios focused on achieving positive... More
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  • Call Writing Strategy Part 8 - Adding NUAN 0 comments
    Sep 30, 2013 1:06 PM | about stocks: NUAN

    I've added another position to the call writing portfolio - (NASDAQ:NUAN) - Nuance Communications. Bought 1000 shs @ 18.60 and sold the Nov 19 calls @ .80..

    NUAN has drifted down in the recent market weakness but appears to have good support in the 18 area.. Carl Icahn has a position in the stock and I believe that will create a floor in the price right around these levels..

    If the stock is Called away in November it will produce a gain of 6.4% for a holding period of approx. 2 months.. Conversely if we still own the stock after the November expiration date it provides a yield of 4.2% and we effectively will own the stock @ $17.80 ... I like the risk reward in this stock as I believe it may also provide LT holders with gains in the long run ..

    With this new addition , we have taken in $8532 in premiums and Gains since June 5th. Projecting the same rate of appreciation, the portfolio is on track to show a healthy profit on the $100,000 of over 20%.

    The spreadsheet below indicates the holdings in the portfolio .

    (click to enlarge)

    Disclosure: I am long NUAN.

    Additional disclosure: Stocks for Income means just that at Stocks4Income.comI am long numerous equity positions ( full list can be seen here on this blog) I am short Gold Via DZZ

    Stocks: NUAN
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