Publications

5/30/13 Trade Alert: A Secondary Bargain

Note: Two Separate Trades 1. Sell Put Credit Spread on Health Care REIT (NYSE: HCN) “Buy to Open” September $62.50 Put and “Sell to Open” September $67.50 Put Option Symbols: HCN130921P62.5 and HCN130921P67.5 Limit Order Price: Net credit of $1.10 or more ($110 per spread)–good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to […]… Read More

5/23/13 Trade Alert: Breakup Potential

Sell Put Credit Spread on Baxter International (NYSE: BAX) “Buy to Open” August $65 Put and “Sell to Open” August $70 Put Option Symbols: BAX130817P65 and BAX130817P70 Limit Order Price: Net credit of $1.30 or more ($130 per spread)–good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: […]… Read More

5/21/13 Trade Alert: Volatile Reversion

Vertical Roll on Volatility Index (VIX) to October   “Buy to Close” May $18 Put and “Buy to Open” October $11 Put and “Sell to Open” October $20 Put Option Symbols: VIX130522P18 and VIX131016P11 and VIX131016P20 Limit Order Price for Three-Legged Vertical Roll: Net debit of $0.65 or less ($65 per spread) For those using […]… Read More

5/16/13 Trade Alert: Closing Cisco

Diagonal Call Spread on Cisco Systems (Nasdaq: CSCO) “Buy to Close” May $21 Call “Sell to Close” January 2015 $17 Call Option Symbol: CSCO130518C21 and CSCO150117C17 Limit Order Price: Credit of $4.10 or more ($410 per spread)–good ’til canceled (GTC) Options for Income Portfolio: Growth Tell your broker: I’d like to buy to enter an […]… Read More

5/16/13 Trade Alert: Take My Advice

Not many companies generate a return on invested capital of more than 60 percent and yet still trade at a reasonable valuation, but I found one.  Plus, a non-earnings gunslinger based on an up-or-down shareholder vote.

Please note: Stay tuned for a second trade alert that will address the Cisco Systems covered call after market prices have had time to adjust in reaction to the company’s May 15th earnings report.
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5/16/13 Trade Alert: Take My Advice

  1. Sell Put Credit Spread on Accenture (NYSE: ACN) “Buy to Open” August $72.50 Put and “Sell to Open” August $77.50 Put Option Symbols: ACN130817P72.5 and ACN130817P77.5 Limit Order Price: Net credit of $1.00 or more ($100 per spread)–good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income […]… Read More

5/15/13 Market Briefing: Directional Calendar Spreads

The stock market continues to rise as the real economy remains stuck in neutral thanks to global monetary stimulus. When the monetary music stops, a directional put calendar spread may be the perfect downside hedge. Discover why an out-of-the-money calendar put spread may be a preferable hedge compared to a vertical put spread.
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5/9/13 Trade Alert: Eat, Hedge, and Travel

Note: Four Separate Trades 1. Sell Put Credit Spread on McDonalds (NYSE: MCD) “Buy to Open” September $92.50 Put and “Sell to Open” September $97.50 Put Option Symbols: MCD130921P92.5 and MCD130921P97.5 Limit Order Price: Net credit of $1.25 or more ($125 per spread)–good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to slightly bullish […]… Read More

5/3/13 Trade Alert: Cancel Teradata Limit Order and Wait for New Trade Alert

Cancel: The July $50/$45 Put Spread Order on Teradata Corp (NYSE: TDC). Rationale for Cancellation: See April 25 Trade Alert for details regarding the original trade. The stock has plunged 10 percent after hours on a weak earnings report. Stay tuned for a new Trade Alert on Teradata after I see how the stock performs […]… Read More

5/2/13 Trade Alert: Bull, Bear, and Neutral

Note: Three Separate Trades 1. Sell Put Credit Spread on Linn Energy LLC (Nasdaq: LINE) “Buy to Open” July $32 Put and “Sell to Open” July $37 Put Option Symbols: LINE130720P32 and LINE130720P37 Limit Order Price: Net credit of $1.15 or more ($115 per spread)–good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to […]… Read More