Publications

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

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