Publications

8/18/11 Trade Alert: Oil Covered in Latin Flair–UPDATE

(updated with trade rationale) Buy Diagonal Call Debit Spread on Petrobras (NYSE: PBR) “Buy to Open” January 2013 $25 Call and “Sell to Open” October $31 Call Option ticker symbols: PBR130119C25 and PBR111022C31 Limit Order Price: Net debit of $5.50 or less ($550 per spread) Directional View for Underlying Stock: Bullish Options for Income Portfolio: […]… Read More

8/16/11 Trade Alert: August Rolls Continue

(Rationale for these trades was discussed in this week’s briefing) 1. Diagonal Roll on Danaher (NYSE: DHR) “Buy to Close” August $52.50 Put and “Sell to Close” September $47 Put and “Sell to Open” January 2012 $52.50 Put and “Buy to Open” January 2012 $42.50 Put Option Symbols: DHR110820P52.5 and DHR110820P47 and DHR120121P52.5 and DHR120121P42.5 […]… Read More

8/15/11 Weekly Briefing: It Pays to Be a Contrarian Investor

The stock market has declined fast and furious and investors are shell-shocked. But it’s precisely times like these when the big profits are made by contrarian investors. The OFI Options Toolbox can help you become a successful contrarian.

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8/10/11 Trade Alert: Rolling Four Vertical Spreads

(Rationale for these trades was discussed in this week’s briefing) 1. Vertical Roll on Amgen (Nasdaq: AMGN) “Buy to Close” August $57.50 Put and “Sell to Close” August $52.50 Put and “Sell to Open” January 2012 $57.50 Put and “Buy to Open” January 2012 $47.50 Put Option Symbols: AMGN110820P57.5 and AMGN110820P52.5 and AMGN120121P57.5 and AMGN120121P47.5 […]… Read More

8/9/11 Weekly Briefing: Options Are Their Own Hedge Against Market Declines

The recent stock market crash has exposed the inherent advantages of options over stock in limiting losses. Jim also reveals his strategy for rolling forward four of OFI’s August vertical spread positions…. Read More

8/4/11 Trade Alert: Profiting From Risk–UPDATE

(updated with trade rationale) Sell Put Credit Spread on CME Group (Nasdaq: CME) “Buy to Open” December $240 Put and “Sell to Open” December $250 Put Option Symbols: CME111217P240 and CME111217P250 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 […]… Read More

8/1/11 Weekly Briefing: Good Trades Can Have Bad Results

Outcome bias is a pitfall for many investors. What’s important is the investment process, not the outcome of a single trade…. Read More

7/28/11 Trade Alert: Foreign Fantasy–UPDATE

(Updated with trade rationale) Sell Put Credit Spread on NetEase.com (Nasdaq: NTES) “Buy to Open” September $41 Put and “Sell to Open” September $48 Put Option Symbols: NTES110917P41 and NTES110917P48 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: […]… Read More

7/25/11 Weekly Briefing: Don’t Get Vexed by the VIX

Investors often ask whether they can hedge against “black swan” negative events such as a US debt default by purchasing call options on the VIX. The answer is more complicated than one might think.
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7/21/11 Trade Alert: Software Generates Loads of Cash–UPDATE

(updated with trade rationale) Sell Put Credit Spread on Autodesk (Nasdaq: ADSK) “Buy to Open” August $31 Put and “Sell to Open” August $36 Put Option Symbols: ADSK110820P31 and ADSK110820P36 Limit Order Price: Net credit of $1.30 or more ($130 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: […]… Read More