Publications

1/8/15 Trade Alert: Mice, Bonds, and Gold

Note: Three Separate Trades 1. Put Credit Spread on Walt Disney Company (NYSE: DIS) “Buy to Open” February $87.50 Put and “Sell to Open” February $92.50 Put Option Symbols: DIS150220P87.5 and DIS150220P92.5 Limit Order Price: Net credit of $1.45 or more ($145 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral […]… Read More

12/30/14 Trade Alert: Sport Injuries

Note: Three Separate Trades 1. Put Credit Spread on Zimmer Holdings (NYSE: ZMH) “Buy to Open” February $105 Put and “Sell to Open” February $110 Put Option Symbols: ZMH150220P105 and ZMH150220P110 Limit Order Price: Net credit of $1.20 or more ($120 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to […]… Read More

12/26/14 Alert: For Those That Can’t Open the BEAV1 April Call Spread

For those who use a broker that will not allow an opening trade on the new BEAV1 April call spread: Life is too short to worry about this BEAV1 trade. Just close out the BEAV1 January 90/80 put spread and focus on your other trades. I am not going to recommend an alternative BEAV trade. […]… Read More

12/26/14 Trade Alert: Ready to Eat Bread Rolls

Note: Four Separate Trades 1. Put Credit Spread on Panera Bread (Nasdaq: PNRA) “Buy to Open” February $160 Put and “Sell to Open” February $165 Put Option Symbols: PNRA150220P160 and PNRA150220P165 Limit Order Price: Net credit of $1.30 or more ($130 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to […]… Read More

12/19/14 Trade Alert: Odds and Ends

Please Note: Two Separate Trades   1. Roll Covered Call on Solarwinds (NYSE: SWI) to March    “Buy to Close” December $42.50 Call and    “Sell to Open” March $42.50 Call Option Symbols: SWI141220C42.5 and SWI150320C42.5 Limit Order Price: Net credit of $0.75 per share or more ($75 per spread)–day order Directional View for Underlying Stock: Neutral to […]… Read More

12/18/14 Trade Alert: Big Black and Blue

1. Put Credit Spread on IBM (NYSE: IBM) “Buy to Open” February $140 Put and “Sell to Open” February $145 Put Option Symbols: IBM150220P140 and IBM150220P145 Limit Order Price: Net credit of $1.20 or more ($120 per spread)–good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative […]… Read More

12/17/14 Trade Alert: Coming for Cummins

Vertical Roll of Cummins (NYSE: CMI) to January “Buy to Close” December $145 Put and “Sell to Close” December $135 Put and “Buy to Open” January $135 Call and “Sell to Open” January $145 Call Option Symbols: CMI141220P145 and CMI141220P135 and CMI150117C135 and CMI150117C145 Limit Order Price: Net debit of $10.80 or less ($1,080 per […]… Read More

12/11/14 Trade Alert: Oil Has a Hissy Fit

Please Note: Four Separate Trades 1. Put Credit Spread on Hess Corp. (NYSE: HES) “Buy to Open” February $60 Put and “Sell to Open” February $65 Put Option Symbols: HES150220P60 and HES150220P65 Limit Order Price: Net credit of $1.55 or more ($155 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral […]… Read More

12/4/14 Trade Alert: Pipelines are Fashionable

Please Note: Two Separate Trades   1. Put Credit Spread on Michael Kors (NYSE: KORS) “Buy to Open” February $65 Put and “Sell to Open” February $70 Put Option Symbols: KORS150220P65 and KORS150220P70 Limit Order Price: Net credit of $1.05 or more ($105 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: […]… Read More

Predictive Effect of Implied-Volatility Changes and Extending Duration in Periods of Low Volatility

December expiration is looking very positive for the OFI portfolios, with many positions set to expire worthless for maximum profit. The first half of December is a bit precarious historically, but the stock-market should end 2014 on a strong note.

Analyzing changes in the implied volatility of options to predict future stock direction and adjusting trade duration based on the level of implied volatility are two ways to optimize your trading results.

… Read More