Publications

5/11/12 Weekly Briefing: VIX Calls Revisited

All you ever wanted to know about using options to hedge your portfolio against a market downdraft. Move over S&P 500 puts, VIX calls are in town!… Read More

5/10/12 Trade Alert: A Consumer Products Reunion

1. Sell Put Credit Spread on Procter & Gamble (NYSE: PG) “Buy to Open” July $55 Put and “Sell to Open” July $62.50 Put Option Symbols: PG120721P55 and PG120721P62.5 Limit Order Price: Net credit of $1.05 or more ($105 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative […]… Read More

5/3/12 Trade Alert: Doubling Down on Risk Reduction

Sell Put Credit Spread on CME Group (Nasdaq: CME) “Buy to Open” September $220 Put and “Sell to Open” September $230 Put Option Symbols: CME120922P220 and CME120922P230 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 Margin […]… Read More

4/26/12 Trade Alert: Going Back to the Beginning

1. Put Credit Spread on Berkshire Hathaway Class B (NYSE: BRK-B) “Buy to Open” September $70 Put and “Sell to Open” September $77.50 Put Option Symbols: BRKB120922P70 and BRKB120922P77.5 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 […]… Read More

4/25/12 Weekly Briefing: OFI’s One-Year Anniversary Deserves Celebration!

Here’s hoping that the second year of Options for Income is as profitable as the first year…. Read More

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