ngraf's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/2117981/comments http://seekingalpha.com/currents/post/890301?source=feed#comment-16698311 16698311
Try a test trade and watch the results using the weekly options. Since the shares are currently advancing on speculation of something happening with an increased dividend and share buyback, I am focusing on the puts and not trading the calls at this time. I would sell the Mar 28 445 puts and buy the 440 puts for a net credit of .37, so for 10 contracts that would be a $370 gain for five days. That's an 8% return on risk for five days.

Lrt mr know if you need more info.]]> Sat, 23 Mar 2013 10:55:05 -0400
Try a test trade and watch the results using the weekly options. Since the shares are currently advancing on speculation of something happening with an increased dividend and share buyback, I am focusing on the puts and not trading the calls at this time. I would sell the Mar 28 445 puts and buy the 440 puts for a net credit of .37, so for 10 contracts that would be a $370 gain for five days. That's an 8% return on risk for five days.

Lrt mr know if you need more info.]]> http://seekingalpha.com/currents/post/890301?source=feed#comment-16326871 16326871 I find writing credit spreads, using calls $20 above current price and Puts $20 below current price to be an effective way to make 8-10% return on risk weekly. This minimizes the risk if the market moves the wrong way on you overnight. The actual risk is limited to the difference between the strike prices less the credit.
Example, using the current stock price of $441.00, I would sell the Mar 22 weekly Put options at the 420 strike and buy the 415 puts for a .46 credit. On 10 contracts the Max gain = $460, Max loss = $4,540, Return on Risk = 10.13%
On the Call side, I would sell the Mar 22 460 strike and buy the 465 strike for a net credit of.49. On 10 contracts the max gain = $490, the Max loss = $4,510, Return on Risk = 10.86%

This strategy controls the risk and being on both sides of the current price with the Call and the Puts, at least one of the trades will be successful and most often they are both successful. You can also close one of the positions if the stock is approaching the strike price for either position.

Your margin requirements are also reduced to the difference between the strike prices less the credit for each position.

I have been using this strategy successfully for the past year. Let me know what you think.]]> Fri, 15 Mar 2013 10:54:43 -0400 I find writing credit spreads, using calls $20 above current price and Puts $20 below current price to be an effective way to make 8-10% return on risk weekly. This minimizes the risk if the market moves the wrong way on you overnight. The actual risk is limited to the difference between the strike prices less the credit.
Example, using the current stock price of $441.00, I would sell the Mar 22 weekly Put options at the 420 strike and buy the 415 puts for a .46 credit. On 10 contracts the Max gain = $460, Max loss = $4,540, Return on Risk = 10.13%
On the Call side, I would sell the Mar 22 460 strike and buy the 465 strike for a net credit of.49. On 10 contracts the max gain = $490, the Max loss = $4,510, Return on Risk = 10.86%

This strategy controls the risk and being on both sides of the current price with the Call and the Puts, at least one of the trades will be successful and most often they are both successful. You can also close one of the positions if the stock is approaching the strike price for either position.

Your margin requirements are also reduced to the difference between the strike prices less the credit for each position.

I have been using this strategy successfully for the past year. Let me know what you think.]]> http://seekingalpha.com/article/939411/comments?source=feed#comment-14988261 14988261 I like your short play on these ETF's. Are you shorting the ETF or selling options? Selling options looks like a viable play to me. I'm curious as to how you play these ETF's and what kind of return you are experiencing.]]> Thu, 14 Feb 2013 11:54:30 -0500 I like your short play on these ETF's. Are you shorting the ETF or selling options? Selling options looks like a viable play to me. I'm curious as to how you play these ETF's and what kind of return you are experiencing.]]> http://seekingalpha.com/article/1109141/comments?source=feed#comment-14148671 14148671
I have an active trader account with Fidelity and I can make a multi-leg spread for $5.95 + .75 per contract. So I made the 4 leg spread with 5 contracts per leg for a cost of $20.95. I made this trade and closed out the 535 Call on 1/23 in the morning when AAPL was advancing to allow the gains and not be restricted by the 535 Calls sold. I then closed out the entire spread before the close on 1/23 with a $3,500+ gain. I decided the risk to the downside was too great and I wanted to keep my profits. This turned out to be a nice two day trade. I wish they would all work this well LOL.

I hope this helps.

Norm]]> Fri, 25 Jan 2013 10:18:34 -0500
I have an active trader account with Fidelity and I can make a multi-leg spread for $5.95 + .75 per contract. So I made the 4 leg spread with 5 contracts per leg for a cost of $20.95. I made this trade and closed out the 535 Call on 1/23 in the morning when AAPL was advancing to allow the gains and not be restricted by the 535 Calls sold. I then closed out the entire spread before the close on 1/23 with a $3,500+ gain. I decided the risk to the downside was too great and I wanted to keep my profits. This turned out to be a nice two day trade. I wish they would all work this well LOL.

I hope this helps.

Norm]]> http://seekingalpha.com/article/1109141/comments?source=feed#comment-13890211 13890211
Any thoughts on an earnings spread?

Norm]]> Fri, 18 Jan 2013 16:24:53 -0500
Any thoughts on an earnings spread?

Norm]]> http://seekingalpha.com/article/1109141/comments?source=feed#comment-13890101 13890101
AAPL closed at 500.00. That's incredible. The big institutions have total control.

Good observation, thanks for the comment on this article by Joe.

Norm]]> Fri, 18 Jan 2013 16:21:46 -0500
AAPL closed at 500.00. That's incredible. The big institutions have total control.

Good observation, thanks for the comment on this article by Joe.

Norm]]> http://seekingalpha.com/article/1109141/comments?source=feed#comment-13886311 13886311 Your article was right on the money. Thanks for sharing. You saved me alot of money on the Jan 19 spread I had written. I had written Jan 19 Puts @ 495 and bought Puts @ 485. Your analysis and foresight gave me the courage to hold onto the spread and not close prematurely. You saved me about $1,800 on the 10 contracts.

I'm planning on executing the following trade before the close today for a debit of approximately $7.85:

I compiled this spread around 12:00 so the actual amounts will vary somewhat when I execute today.
Buy Jan 25 505 Calls @ 15.95
Sell Jan 25 535 Calls @ 6.10
Sell Jan 25 490 Puts @ 14.65
Buy Jan 25 485 Puts @ 12.65

Max Gain = $2,215 per cotract at share price of 535
Breakeven = 512.85
Max Loss = $1,285 per contract at share price of 485

If we get a big movement either way on the earnings report, I will close some of the legs.

All comments on this spread are welcomed.

]]> Fri, 18 Jan 2013 14:35:02 -0500 Your article was right on the money. Thanks for sharing. You saved me alot of money on the Jan 19 spread I had written. I had written Jan 19 Puts @ 495 and bought Puts @ 485. Your analysis and foresight gave me the courage to hold onto the spread and not close prematurely. You saved me about $1,800 on the 10 contracts.

I'm planning on executing the following trade before the close today for a debit of approximately $7.85:

I compiled this spread around 12:00 so the actual amounts will vary somewhat when I execute today.
Buy Jan 25 505 Calls @ 15.95
Sell Jan 25 535 Calls @ 6.10
Sell Jan 25 490 Puts @ 14.65
Buy Jan 25 485 Puts @ 12.65

Max Gain = $2,215 per cotract at share price of 535
Breakeven = 512.85
Max Loss = $1,285 per contract at share price of 485

If we get a big movement either way on the earnings report, I will close some of the legs.

All comments on this spread are welcomed.

]]> http://seekingalpha.com/article/1059071/comments?source=feed#comment-12534471 12534471
AAPL @ 538

Bear Call Spread:
Sell Dec 22 560 Calls @ 3.95
Buy Dec 22 570 Calls @ 2.30
Net Credit = 1.65
Max Gain =1.65 Per Contract
Max Loss = 8.35
Breakeven = 561.65
Return on Risk = 19.76%

Bull Put Spread:
Sell Dec 22 515 Puts @ 4.55
Buy Dce 22 505 Puts @ 2.92
Net Credit = 1.63
Max Gain = 1.63 Per Contract
Max Loss = 8.37
Breakeven = 513.37
Return on Risk = 19.47%]]> Wed, 12 Dec 2012 16:00:33 -0500
AAPL @ 538

Bear Call Spread:
Sell Dec 22 560 Calls @ 3.95
Buy Dec 22 570 Calls @ 2.30
Net Credit = 1.65
Max Gain =1.65 Per Contract
Max Loss = 8.35
Breakeven = 561.65
Return on Risk = 19.76%

Bull Put Spread:
Sell Dec 22 515 Puts @ 4.55
Buy Dce 22 505 Puts @ 2.92
Net Credit = 1.63
Max Gain = 1.63 Per Contract
Max Loss = 8.37
Breakeven = 513.37
Return on Risk = 19.47%]]> http://seekingalpha.com/article/1059071/comments?source=feed#comment-12532481 12532481
I use options that are $20 below the current share price for the Puts and $20 above the share price for the Call Spreads with a $10 difference between the sell and buy strikes.

By placing both the Bear Call Spread and the Bull Put Spread, you create a Short Iron Condor in your brokerage account which gives you a good margin requirement and leverage. Also you won't lose on both trades since they are in opposite directions from the market with a $40 difference in spread strikes

An example of my spreads using this weeks options is as follows:

AAPL currently trading at 539

Bear Call Spread
Sell Dec 14 560 Calls @ .89
Buy Dec 14 570 Calls @ .34
Net Credit = .55
Return on Risk = 9.44%

Bull Put Spread
Sell Dec 14 515 Puts @ .93
Buy Dec 14 505 Puts @ .47
Net Credit = .46
Return on Risk = 4.82%

You will most likely be profitable on both trades and that's a nice return for just 3 days left until expiration. Compare that to the Feb. Iron Condor that was suggested in the article you referenced by your fellow Seeking Alpha contributor..

Try runnung the spreads for the Dec 22 options and you will get an even bigger return on $ and %.

I love the Bull Put and Bear Call Spreads.

Norm


The key is to use the weekly options to take advantage of the rapid decay of the premium and execute Credit Spreads for both types of spreads. You also need to manage closely in case of big price swings.]]> Wed, 12 Dec 2012 15:10:11 -0500
I use options that are $20 below the current share price for the Puts and $20 above the share price for the Call Spreads with a $10 difference between the sell and buy strikes.

By placing both the Bear Call Spread and the Bull Put Spread, you create a Short Iron Condor in your brokerage account which gives you a good margin requirement and leverage. Also you won't lose on both trades since they are in opposite directions from the market with a $40 difference in spread strikes

An example of my spreads using this weeks options is as follows:

AAPL currently trading at 539

Bear Call Spread
Sell Dec 14 560 Calls @ .89
Buy Dec 14 570 Calls @ .34
Net Credit = .55
Return on Risk = 9.44%

Bull Put Spread
Sell Dec 14 515 Puts @ .93
Buy Dec 14 505 Puts @ .47
Net Credit = .46
Return on Risk = 4.82%

You will most likely be profitable on both trades and that's a nice return for just 3 days left until expiration. Compare that to the Feb. Iron Condor that was suggested in the article you referenced by your fellow Seeking Alpha contributor..

Try runnung the spreads for the Dec 22 options and you will get an even bigger return on $ and %.

I love the Bull Put and Bear Call Spreads.

Norm


The key is to use the weekly options to take advantage of the rapid decay of the premium and execute Credit Spreads for both types of spreads. You also need to manage closely in case of big price swings.]]> http://seekingalpha.com/article/968611/comments?source=feed#comment-11216691 11216691
I understand what you're saying about the risk / reward, but since I'm $20 below the current price and the time horizon is only one week, I have some cushion to cover if the spread turns against me. If I would compare the profit of $1.72 weekly for 11 weeks for a total profit of $18.92 vs the profit on the Jan puts of $3.80 it's worth the extra risk to me, especially since I'm $20 below the current price each week.

In addition to the puts, I do a similar Bear Call Spread on the calls, which reduces any potential loss for the puts. I usually go 25-30 above for the calls if the shares are advancing. One of these spreads has to be successful every week, since they both can't fail.

I still like your Jan call spread and will sell the puts weekly reducing the cost of the calls to zero. Good article.

Thanks again for your thoughts.]]> Sun, 04 Nov 2012 10:09:36 -0500
I understand what you're saying about the risk / reward, but since I'm $20 below the current price and the time horizon is only one week, I have some cushion to cover if the spread turns against me. If I would compare the profit of $1.72 weekly for 11 weeks for a total profit of $18.92 vs the profit on the Jan puts of $3.80 it's worth the extra risk to me, especially since I'm $20 below the current price each week.

In addition to the puts, I do a similar Bear Call Spread on the calls, which reduces any potential loss for the puts. I usually go 25-30 above for the calls if the shares are advancing. One of these spreads has to be successful every week, since they both can't fail.

I still like your Jan call spread and will sell the puts weekly reducing the cost of the calls to zero. Good article.

Thanks again for your thoughts.]]> http://seekingalpha.com/article/968611/comments?source=feed#comment-11172441 11172441
I agree with selling options and I sell deep out-of-the-money ($20 above and below share price) weekly calls and puts on a regular basis. That's why I'm looking for other comments. This looks like an excellent way of reducing the cost of the Jan calls. Otherwise the premium just eats away at any profit potential.

Thanks for your feedback. ]]> Fri, 02 Nov 2012 14:33:17 -0400
I agree with selling options and I sell deep out-of-the-money ($20 above and below share price) weekly calls and puts on a regular basis. That's why I'm looking for other comments. This looks like an excellent way of reducing the cost of the Jan calls. Otherwise the premium just eats away at any profit potential.

Thanks for your feedback. ]]> http://seekingalpha.com/article/968611/comments?source=feed#comment-11167891 11167891
Thanks for the article. I've been considering a strategy like you suggested and I like your thoughts. I'm planning to modify your strategy and add a Bull Put spread to further reduce the cost of owning the Jan Calls. I would appreciate your thoughts on the strategy below.

My thoughts using current option prices are as follows:

AAPL is trading @ 591.83

Leg 1 Buy Jan 605 Calls @ 25.25+
Leg 2 Sell Nov 9 610 Calls @ 2.28-
Leg 3 Sell Nov 9 570 Puts @ 2.75-
Leg 4 Buy Nov 9 555 Puts @ 1.03+
Net Debit = 21.25+

I would repeat legs 2 through 4 each week trading the weekly options using strikes that are approximately $20 below and above the share price each week, Trading the weeklies reduces the cost of ownership of the Jan Calls by approximately $5.00 each week so the Jan Calls would be at zero cost after only 5 weeks.

All comments on this strategy would be greatly appreciated. ]]> Fri, 02 Nov 2012 12:52:46 -0400
Thanks for the article. I've been considering a strategy like you suggested and I like your thoughts. I'm planning to modify your strategy and add a Bull Put spread to further reduce the cost of owning the Jan Calls. I would appreciate your thoughts on the strategy below.

My thoughts using current option prices are as follows:

AAPL is trading @ 591.83

Leg 1 Buy Jan 605 Calls @ 25.25+
Leg 2 Sell Nov 9 610 Calls @ 2.28-
Leg 3 Sell Nov 9 570 Puts @ 2.75-
Leg 4 Buy Nov 9 555 Puts @ 1.03+
Net Debit = 21.25+

I would repeat legs 2 through 4 each week trading the weekly options using strikes that are approximately $20 below and above the share price each week, Trading the weeklies reduces the cost of ownership of the Jan Calls by approximately $5.00 each week so the Jan Calls would be at zero cost after only 5 weeks.

All comments on this strategy would be greatly appreciated. ]]> http://seekingalpha.com/article/968611/comments?source=feed#comment-11139661 11139661
I too like vertical spreads, but the modified calendar spread He is suggesting makes a lot of sense. Buy the January 600 Calls you referenced, but instead of selling the Jan 605 calls, sell the weekly calls over and over again each week. You take advantage of the rapid time decay in the weekly calls versus the slower time decay in the Jan calls. You will make money selling the calls each week and end up with a profit for selling the calls as well as the profit from the long calls. You can also roll the weekly calls up each week and keep selling at higher strikes. Look at the Theta for the weekly calls versus the Theta for the Jan calls. Using his 595 Call and selling 615 Weekly Calls you net .18 per day per share profit. I really like his spread using the weekly's.]]> Thu, 01 Nov 2012 17:19:03 -0400
I too like vertical spreads, but the modified calendar spread He is suggesting makes a lot of sense. Buy the January 600 Calls you referenced, but instead of selling the Jan 605 calls, sell the weekly calls over and over again each week. You take advantage of the rapid time decay in the weekly calls versus the slower time decay in the Jan calls. You will make money selling the calls each week and end up with a profit for selling the calls as well as the profit from the long calls. You can also roll the weekly calls up each week and keep selling at higher strikes. Look at the Theta for the weekly calls versus the Theta for the Jan calls. Using his 595 Call and selling 615 Weekly Calls you net .18 per day per share profit. I really like his spread using the weekly's.]]> http://seekingalpha.com/currents/post/626131?source=feed#comment-11090521 11090521 Wed, 31 Oct 2012 15:00:27 -0400 http://seekingalpha.com/article/858371/comments?source=feed#comment-9299181 9299181 Mon, 10 Sep 2012 21:09:27 -0400 http://seekingalpha.com/article/718671/comments?source=feed#comment-7341581 7341581 Fri, 13 Jul 2012 00:05:11 -0400 http://seekingalpha.com/currents/post/272221?source=feed#comment-4801581 4801581 Wed, 25 Apr 2012 23:21:43 -0400 http://seekingalpha.com/article/523651/comments?source=feed#comment-4768561 4768561
Norm]]> Wed, 25 Apr 2012 09:07:25 -0400
Norm]]> http://seekingalpha.com/article/523651/comments?source=feed#comment-4758861 4758861 I appreciate your thoughts.

Thanks again, Norm ]]> Tue, 24 Apr 2012 23:24:57 -0400 I appreciate your thoughts.

Thanks again, Norm ]]> http://seekingalpha.com/article/523651/comments?source=feed#comment-4748741 4748741
Norm]]> Tue, 24 Apr 2012 18:43:33 -0400
Norm]]> http://seekingalpha.com/currents/post/232191?source=feed#comment-4076921 4076921 Mon, 02 Apr 2012 20:02:58 -0400