Publications

4/17/12 Trade Alert: Two Rolls

1. Sell Horizontal Spread on Molson Coors (NYSE: TAP) “Buy to Close” April $45 Put and “Sell to Open” July $45 Put Option Symbols: TAP120421P45 and TAP120721P45 Limit Order Price: Net credit of $0.70 or more ($70 per spread) Directional View for Underlying Stock: Neutral to Bullish Options for Income Portfolio: Conservative Income Approximate margin requirement […]… Read More

4/13/12 Weekly Briefing: The Most Profitable Option Strategy

If you’re wondering why most Options for Income trades involve selling puts, reading the conclusions of two academic studies will solve the mystery…. Read More

4/12/12 Trade Alert: Separating the Wheat from the Chaff

1. Sell Put Credit Spread on Waters (NYSE: WAT) “Buy to Open” May $80 Put and “Sell to Open” May $85 Put Option Symbols: WAT120519P80 and WAT120519P85 Limit Order Price: Net credit of $1.10 or more ($110 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

4/5/12 Trade Alert: Biotech Three-peat

Put Credit Spread on United Therapeutics Corp (NasdaqGS: UTHR) “Buy to Open” August $32.50 Put and “Sell to Open” August $40 Put Option Symbols: UTHR120818P32.5 and UTHR120818P40 Limit Order Price: Net credit of $1.35 or more ($135 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

4/3/12 Trade Alert: Taking Advantage of a Price Run-Up

Please Note: This recommended trade only applies to those OFI members who already have a position in Cisco Systems stock. Do NOT do this trade as an initial position. 1. Covered Call on Cisco Systems (Nasdaq: CSCO) “Sell to Open” June $21 Call Option Symbol: CSCO120616C21 Limit Order Price: $1.00 per share credit or more […]… Read More

3/29/12 Trade Alert: Good Guys Finish First

1. Sell Put Credit Spread on Cummins (NYSE: CMI) “Buy to Open” June $97.50 Put and “Sell to Open” June $105 Put Option Symbols: CMI120616P97.5 and CMI120616P105 Limit Order Price: Net credit of $1.35 or more ($135 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

3/28/12 Weekly Briefing: Choosing Between Maximum Loss and Probability of Loss

In options trading, protecting yourself against one type of risk can expose you to another type of risk. The key to trading success is balancing both types of risk simultaneously.

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3/22/12 Trade Alert: Loading up on Carbs

1. Sell Put Credit Spread on Carbo Ceramics (NYSE: CRR) “Buy to Open” May $75 Put and “Sell to Open” May $85 Put Option Symbols: CRR120519P75 and CRR120519P85 Limit Order Price: Net credit of $2.00 or more ($200 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income […]… Read More

3/16/12 Trade Alert: Too Close for Comfort Part 2 Chinese Style

Buy $55 Call on NetEase.com (NasdaqGS: NTES) Please Note: This recommended trade only applies to those OFI members who already have a position in NetEase.com. Do NOT do this trade as an initial position. “Buy to Close” March $55 Call Option Symbol: NTES120317C55 Limit Order Price: Net debit of $0.10 or less ($10 per contract) […]… Read More

3/16/12 Trade Alert: Too Close for Comfort

1. Close $36/$38 Call Spread on MetLife (NYSE: MET) Please Note: This recommended trade only applies to those OFI members who already have a position in MetLife. Do NOT do this trade as an initial position. “Buy to Close” March $38 Call and “Sell to Close” March $36 Call Option Symbols: MET120317C38 and MET120317C36 Limit […]… Read More