Publications

Changing Deltas: Snapshot Hedge Much Cheaper Than Continuous Hedge

Hedging can be very expensive, but if you focus on protection at a specific point in time rather than continuous protection, the cost can be cut in half…. Read More

8/8/14 Trade Alert: Auction Discount Requires Roll

Vertical Roll on Sotheby’s (NYSE: BID) to October “Buy to Close” August $40 Put and “Sell to Close” August $35 Put and “Buy to Open” October $35 Put and “Sell to Open” October $40 Put Option Symbols: BID140816P35 and BID140816P40 and BID141018P35 and BID141018P40 Limit Order Price: Net debit of $0.75 or less ($75 per […]… Read More

8/8/14 Trade Alert: After the Earnings Report

Vertical Roll on Teradata (NYSE: TDC) to October “Buy to Close” August $45 Put and “Sell to Close” August $37.50 Put and “Buy to Open” October $37.50 Put and “Sell to Open” October $45 Put Option Symbols: TDC140816P37.5 and TDC140816P45 and TDC141018P37.5 and TDC141018P45 Limit Order Price: Net credit of $0.10 or more ($10 per […]… Read More

8/7/14 Trade Alert: Buying Time

Please Note: Three Separate Trades 1. Put Credit Spread on Amazon.com (Nasdaq: AMZN) “Buy to Open” September $290 Put and “Sell to Open” September $295 Put Option Symbols: AMZN140920P290 and AMZN140920P295 Limit Order Price: Net credit of $1.00 or more ($100 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to […]… Read More

8/6/14 Trade Alert: Rolling a Blue Chip

Vertical Roll on Emerson Electric (NYSE: EMR) to December “Buy to Close” August $67.50 Put and “Sell to Close” August $62.50 Put and “Buy to Open” December $57.50 Put and “Sell to Open” December  $67.50 Put Option Symbols: EMR140816P62.5 and EMR140816P67.5 and EMR141220P57.5 and EMR141220P67.5 Limit Order Price: Net credit of $0.65 or more ($65 per spread)–good ’til canceled (GTC) If your broker doesn’t allow […]… Read More

8/5/14 Trade Alert: Put This One to Bed

Vertical Roll on Bed, Bath & Beyond (Nasdaq: BBBY) to November “Buy to Close” August $65 Put and “Sell to Close” August $57.50 Put and “Buy to Open” November $57.50 Put and “Sell to Open” November $65 Put Option Symbols: BBBY140816P57.5 and BBBY140816P65 and BBBY141122P57.5 and BBBY141122P62.5  Limit Order Price: Net credit of $0.20 or more ($20 per spread)–good ’til canceled (GTC) If your broker […]… Read More

7/31/14 Trade Alert: Doubling Up on Loeb

Note: Five Separate Trades 1. Put Credit Spread on Actavis plc (NYSE: ACT) “Buy to Open” September $200 Put and “Sell to Open” September $205 Put Option Symbols: ACT140920P200 and ACT140920P205 Limit Order Price: Net credit of $1.65 or more ($165 per spread) – good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to […]… Read More

7/24/14 Trade Alert: Ethanol Everywhere

Note: Three Separate Trades   1. Put Credit Spread on Diageo (NYSE: DEO) “Buy to Open” September $115 Put and “Sell to Open” September $120 Put Option Symbols: DEO140920P115 and DEO140920P120 Limit Order Price: Net credit of $1.15 or more ($115 per spread)–good ’til canceled (GTC) Directional View for Underlying Stock: Neutral to slightly bullish […]… Read More

7/22/14 Trade Alert: Spying for Income

Please note: The following SPY trade applies only to those OFI members who already have a long position in the September $171 put. All others should ignore this SPY trade. Sell August $171 Put on S&P 500 ETF (NYSE: SPY) “Sell to Open” August $171 Put Option Symbols: SPY140816P171 Limit Order Price: $0.10 or more […]… Read More

7/18/14 Trade Alert: Last Minute

Please Note: Four Separate Trades   1. Vertical Roll on Amgen (Nasdaq: AMGN) to October “Buy to Close” July $115 Put and “Sell to Close” July $110 Put and “Buy to Open” October $110 Put and “Sell to Open” October $115 Put Option Symbols: AMGN140719P110 and AMGN140719P115 and AMGN141018P110 and AMGN141018P115 Limit Order Price: Net […]… Read More