Publications

3/12/12 Weekly Briefing: When to Roll Bear Call Spreads “Up and Out” Rather than Just Out

Three of OFI’s March portfolio positions are “on the edge” and need to be watched carefully prior to options expiration this Friday.

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3/8/12 Trade Alert: A Utility Primed to Benefit From Cheap Natural Gas

1. Sell Put Credit Spread on Dominion Resources (NYSE: D) “Buy to Open” July $45 Put and “Sell to Open” July $50 Put Option Symbols: D120721P45 and D120721P50 Limit Order Price: Net credit of $1.15 or more ($115 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income […]… Read More

3/1/12 Trade Alert: Cashing in on Shale Oil

1. Sell Put Credit Spread on Lufkin Industries (Nasdaq: LUFK) “Buy to Open” June $60 Put and “Sell to Open” June $70 Put Option Symbols: LUFK120616P60 and LUFK120616P70 Limit Order Price: Net credit of $2.20 or more ($220 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income […]… Read More

2/23/12 Trade Alert: Double-Dipping the Bond Trade and rolling some LEAPS

1. Sell Iron Condor on iShares Barclays 20+ Year US Treasury Bond ETF  (NYSE: TLT) “Buy to Open” May $102 Put and “Sell to Open” May $110 Put and “Buy to Open” May $131 Call and “Sell to Open” May $123 Call Option Symbols: TLT120519P102 and TLT120519P110 and TLT120519C131 and TLT120519C123 Limit Order Price: Net […]… Read More

2/22/12 Weekly Briefing: Ex-Dividend Dates and Early Assignment of Short Calls

If one of your short calls gets assigned early, don’t panic. Correcting the situation is easy and just requires a buy/write trade…. Read More

2/14/12 Trade Alert: Rolling Medical Waste

1. Vertical Roll on Stericycle (Nasdaq: SRCL) “Buy to Close” February $90 Put and “Sell to Open” May $90 Put and “Buy to Open” May $80 Put Option Symbols: SRCL120218P90 and SRCL120519P90 and SRCL120519P80 Limit Order Price for Three-legged Vertical Roll: Net credit of $0.40 per share or more ($40 per vertical roll) For those […]… Read More

2/9/12 Weekly Briefing: February Max Pain Predictions Look Good

February option expiration is shaping up to be another very profitable month for the OFI portfolio.
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2/9/12 Trade Alert: Low Beta Food Company is Low Risk

1. Sell Put Credit Spread on Kellogg (NYSE: K) “Buy to Open” June $42.50 Put and “Sell to Open” June $50 Put Option Symbols: K120616P42.5 and K120616P50 Limit Order Price: Net credit of $1.60 or more ($160 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

2/2/12 Trade Alert: Selling Jeans to Teens

1. Sell Put Credit Spread on Buckle (NYSE: BKE) “Buy to Open” June $32.50 Put and “Sell to Open” June $40 Put Option Symbols: BKE120616P32.5 and BKE120616P40 Limit Order Price: Net credit of $1.50 or more ($150 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

1/31/12 Weekly Briefing: Steady as She Goes

A balancing act between slowing economic growth and anticipated additional monetary easing has global stock markets rising steadily (for now).
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