Publications

8/21/14 Trade Alert: Time is Now for Small Caps

Note: Two Separate Trades 1. Put Credit Spread on Russell 2000 Index (Chicago Options: ^RUT) “Buy to Open” September $1125 Put and “Sell to Open” September $1130 Put Option Symbols: RUT140920P1125 and RUT140920P1130 Limit Order Price: Net credit of $1.10 or more ($110 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: […]… Read More

8/18/14 Trade Alert: Another Hedge Bites the Dust

Closing Out Archer-Daniels-Midland (NYSE: ADM) “Buy to Close” September $48 Call and “Sell to Close” September $55 Call Option Symbols: ADM140920C48 and ADM140920C55 Limit Order Price: Net debit of $1.95 or less ($195 per spread) — day order Options for Income Portfolio: Downside Protection Hedges Tell your broker: I’d like to enter an option spread […]… Read More

8/15/14 Trade Alert: Hedges Aren’t Working

Please Note: Two Separate Trades: 1. Closing Out Walt Disney (NYSE: DIS) “Buy to Close” August $85 Call Option Symbol: DIS140816C85 Limit Order Price: $4.25 or less ($425 per contract) — day order Options for Income Portfolio: Downside Protection Hedges Tell your broker: I want to buy to close the August $85 call on Walt […]… Read More

8/14/14 Trade Alert: Rise and Shine

Note: Three Separate Trades 1. Put Credit Spread on Nike (NYSE: NKE) “Buy to Open” October $70 Put and “Sell to Open” October $75 Put Option Symbols: NKE141018P70 and NKE141018P75 Limit Order Price: Net credit of $1.10 or more ($110 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to slightly […]… Read More

8/13/14 Trade Alert: Closeout Before Earnings

Closing Out Dillard’s (NYSE: DDS) “Buy to Close” August $120 Call and “Sell to Close” August $125 Call Option Symbols: DDS140816C120 and DDS140816C125 Limit Order Price: Net debit of $1.45 or less ($145 per spread) — day order Options for Income Portfolio: Downside Protection Hedges Tell your broker: I’d like to enter an option spread […]… Read More

8/11/14 Alert: Doing Nothing With Disney

I’ve decided not to roll Disney nor close it out until right before the market close on Friday (if it is still in-the-money at that time). If we get assigned early, no big deal. Hold the assigned short stock until expiration (allowed in taxable accounts only), and buy-to-cover the assigned short stock at Friday’s close […]… Read More

Changing Deltas: Snapshot Hedge Much Cheaper Than Continuous Hedge

Hedging can be very expensive, but if you focus on protection at a specific point in time rather than continuous protection, the cost can be cut in half…. Read More

8/8/14 Trade Alert: Auction Discount Requires Roll

Vertical Roll on Sotheby’s (NYSE: BID) to October “Buy to Close” August $40 Put and “Sell to Close” August $35 Put and “Buy to Open” October $35 Put and “Sell to Open” October $40 Put Option Symbols: BID140816P35 and BID140816P40 and BID141018P35 and BID141018P40 Limit Order Price: Net debit of $0.75 or less ($75 per […]… Read More

8/8/14 Trade Alert: After the Earnings Report

Vertical Roll on Teradata (NYSE: TDC) to October “Buy to Close” August $45 Put and “Sell to Close” August $37.50 Put and “Buy to Open” October $37.50 Put and “Sell to Open” October $45 Put Option Symbols: TDC140816P37.5 and TDC140816P45 and TDC141018P37.5 and TDC141018P45 Limit Order Price: Net credit of $0.10 or more ($10 per […]… Read More

8/7/14 Trade Alert: Buying Time

Please Note: Three Separate Trades 1. Put Credit Spread on Amazon.com (Nasdaq: AMZN) “Buy to Open” September $290 Put and “Sell to Open” September $295 Put Option Symbols: AMZN140920P290 and AMZN140920P295 Limit Order Price: Net credit of $1.00 or more ($100 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to […]… Read More