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Fear & Greed Trader
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INDEPENDENT Financial Advisor / Professional Investor- with over 30 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 35 - (LVS) Expiration & EBay Options Sold 2 comments
    Aug 11, 2014 12:33 PM | about stocks: LVS, EBAY, FCX, NVDA, NUAN

    The LVS weekly options that were sold on July 14th , expired worthless last Friday. The shares have dropped to under $70 during the recent market weakness. In my view the shares are undervalued, so I will wait for a rebound on the price before writing another option against this position. While we wait, the portfolio will pick up the dividend payment that is scheduled for Sept.

    I have patiently waited for (NASDAQ:EBAY) to rebound, and today I sold the Sept 55 calls against that position for $.98.

    So with a little over a month to go before expiration that will produce a 1.8% yield for that holding period.

    Existing "open" positions are highlighted.

    (click to enlarge)

    The initial 100,000 investment on 6/5/13 has now produced $29,660 in total income ..

    The same $100,00 invested in the SPX would now be worth $119,292.

    Performance is enhanced now that the SPX has settled down and is in a 'trading" range. While the Call Writing portfolio continues to generate income despite the recent weakness and volatility in the marketplace.

    This is an actual portfolio , all trades have been documented here on this blog.

    Best of Luck to All !!

    Disclosure: The author is long LVS, EBAY, FCX, NVDA, NUAN.

    Additional disclosure: I am long numerous equity positions - all of which can be seen here on my SA Instablog. It is my intention to present an introduction to these securities and state my intent and position. It should be used as a 'Starting Point' to conduct your own Due Diligence before making any investment decision.

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  • synchrogeddon
    , contributor
    Comments (262) | Send Message
     
    Hi, Fear & Greed Trader,
    sorry but I'm better (:.
    I don't understand very well those options things so for now I'm only opening regular long positions. Since 2013 March 6th I made 43% on all my money but the thing is that I had invested around 33% at March 2013, then I added similar amount of money to my broker account in September 2013 (doubled my March money) and also bought some stocks, then added similar amount of money in April 2014 (almost tripled deposited money from March). Now dividing amount of money I have now on my broker account (including open positions) by amount of money I did deposit on my broker account I got increase of +43%. Not so bad for first 1+ year of investing of total newbie like me :). It is mainly because I did follow you so big thanks and good luck to you :). You are the best! I think you were the first one I did click follow on SA, I was very lucky!
    11 Aug 2014, 02:41 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (5986) | Send Message
     
    Author’s reply » synch,

     

    Congrats,, and Im glad I was able to be of some assistance..

     

    The one nice thing about the call writing portfolio is that for the most part there is very little market timing involved..

     

    and I also recommend this strategy----- only for a portion of an investors holdings ..

     

    for me it adds another income stream to my div portfolio holdings

     

    Best of Luck to you !!
    11 Aug 2014, 03:55 PM Reply Like
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