Cousin Calvin

Two Citigroup Income Generating Option Strategies

Marco I am on board with your strategies, I too have sold puts on C, but further out than August.
The problem I have with your thinking here is that you are writing about an income strategy.
In my way of thinking, when you sell calls and puts you have only opened a position. You do not generate any "income" until the position is closed or traded, premiums are kept and the original capital is intact, (in the case of buy/write). Rolling calls and puts forward is a pull back from the original position, at a loss, and living to fight another day. Nothing wrong about that escape hatch, I have used it more than once but it is not generating income.

FAS and FAZ: A Short-Seller's Dream?

Ultra, just an observation, watch out for Implied Volatility on any any Put you might buy.
I thought I played FAZ just right by buying puts. FAZ did drop but so did the option. Stupid me, my loss. Volatility was the culprit. With high volatility sometimes calls and puts can go up and down together, which is the opposite of what you are looking for.


On Jun 13 04:22 PM ultrashorts wrote:

> Another great way to play this is to buy puts on FAS or FAZ. I'm
> holding some FAS Oct 9 puts myself to profit off any potential down
> leg in financials as well as the inherent decay of the leveraged
> ETF.

Costco: Wholesale Profits with an Option Combination

Paul, I did not make it clear that the trade would be in my IRA account, no margin allowed.
Take a look at GG, sells below $30 with good sell premiums.
I am bullish on gold and with their cost structure they should enjoy a good bump. Your January covered call and selling put strategy would appear to be a winner.
Thanks

Costco: Wholesale Profits with an Option Combination

I'm ok with these moves. However if I were to do this exactly as you have laid it out, Fidelity would place $50,000 in a Put Reserve to cover the potential of being Put on the 1,000 shares at $50.
So now I would have $85,600 set aside for a year for this trade. That is a return of 23% on committed cash under the best case.
Using your same stock investigation logic I would just sell the $50 Puts with a closer expiration date than Jan 2010. You could sell puts at least 3 times before 1/2010 and still clear the $20,000, with only $50,000 committed.
Thanks

7 Companies Raising Dividends In This Tough Market

Similar to NAT is Frontline, FRO. At the current price the trailing yield is over 19%. Earnings are reported on 8/29. I'm GUESSING (hoping) that the dividend will also increase beyond the $2.75 level. PE is less than 7.

7 Companies Raising Dividends In This Tough Market

Notso, the yield on NAT is over 16% with a PE of 25. The others mentioned have NOW account yields.