Publications

3/14/13 Trade Alert: Data Explosion

Note: Three Separate Trades 1. Sell Put Credit Spread on American Tower (NYSE: AMT) “Buy to Open” July $65 Put and “Sell to Open” July $72.50 Put Option Symbols: AMT130720P65 and AMT130720P72.5 Limit Order Price: Net credit of $1.40 or more ($140 per spread) — Good til canceled (GTC) Directional View for Underlying Stock: Neutral […]… Read More

3/11/13 Market Briefing: Unbalanced Condors Add Some Downside Hedge Protection to Put Spreads

The amazing stock market rally of 2013 continues, but Jim thinks hedging bullish put credit spreads via the unbalanced condor strategy is a prudent course of action. Plus, an update on Dicks’ Sporting Goods reveals a market leader that should rebound strongly after issuing a mediocre earnings report…. Read More

3/7/13 Trade Alert: Fruit, Beer, and Flash

Note: Three Separate Trades 1. Sell Put Credit Spread on Apple (Nasdaq: AAPL) “Buy to Open” May $370 Put and “Sell to Open” May $380 Put Option Symbols: AAPL130518P370 and AAPL130518P380 Limit Order Price: Net credit of $2.05 or more ($205 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income […]… Read More

2/28/13 Trade Alert: Second Shot

Note: Two Separate Trades I’m canceling the BF-B June $61/$56 put spread order and replacing it with the June $66/$61 put spread order detailed below. 1. Sell Put Credit Spread on Brown-Forman Class B (NYSE: BF-B) “Buy to Open” June $61 Put and “Sell to Open” June $66 Put Option Symbols: BFB130622P61 and BFB130622P66 Limit Order Price: Net credit […]… Read More

2/26/13 Trade Alert: Name Your Own Price Gunslinger

Iron Condor on Priceline.com (Nasdaq: PCLN) “Buy to Open” March (1st week) $595 Put and “Sell to Open” March (1st week) $605 Put and “Buy to Open” March (1st week) $760 Call and “Sell to Open” March (1st week) $750 Call Option Symbols: PCLN130301P595 and PCLN130301P605 and PCLN130301C760 and PCLN130301C750 Limit Order Price for Four-Legged […]… Read More

2/21/13 Trade Alert: Watch TV and Fill Up the Tank

Note: Three Separate Trades 1. Sell Put Credit Spread on DirectTV (Nasdaq: DTV) “Buy to Open” April $44 Put and “Sell to Open” April $48 Put Option Symbols: DTV130420P44 and DTV130420P48 Limit Order Price: Net credit of $1.00 or more ($100 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income […]… Read More

2/15/13 Trade Alert: Close Out if Necessary

We will know by 3:59 PM Eastern Time if NuStar Energy (NS) is going to close above $50 or not. If NS is trading at or below $50 at 3:59 PM, OFI will perform the following trade: “Buy to Close” NuStar Energy February $50 Put Option Symbol: NS130216P50 Price: Market order at 3:59 Eastern Time The other […]… Read More

2/14/13 Trade Alert: Gassy With Booze on the Breath

Note: Two Separate Trades 1. Sell Put Credit Spread on Praxair (NYSE: PX) “Buy to Open” April $100 Put and “Sell to Open” April $110 Put Option Symbols: PX130420P100 and PX130420P110 Limit Order Price: Net credit of $1.70 or more ($170 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income […]… Read More

2/12/13 Trade Alert: Extending Insurance Policy

Vertical Roll on Volatility Index (VIX) to May “Buy to Close” February $18 Put and “Buy to Open” May $11 Put and “Sell to Open” May $18 Put Option Symbols: VIX130213P18 and VIX130522P11 and VIX130522P18 Limit Order Price for Three-Legged Vertical Roll: Net debit of $1.30 or less ($130 per spread) For those using thinkorswim, […]… Read More

2/11/13 Market Briefing: For Exelon and Petrobras, Buying LEAP Calls Was Lower Risk

Sometimes you learn more from your few investment mistakes than your numerous successes. Different option strategies have different risk profiles and one must balance probability of loss vs. risk of maximum loss. February promises to be another very profitable month for the OFI portfolios and four excellent questions from OFI members are answered in this issue’s Q&A.
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