OIC330P: Selling Puts
Podcast Objective:
Podcast objective is to explain different scenarios while calculating returns when selling puts.
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Tuesday, July 31, 2012
Options education330: selling puts
another free video podcast from the Options Industry council: heres the link Selling puts
click-->https://twitter.com/Mark_Lexus to follow on twitter
click-->https://twitter.com/Mark_Lexus to follow on twitter
CLOSING $MA credit put spread entry
17aug - this credit spread will expire at max profit today, could have gone a bit higher in hindsight. stock did not threaten the credit spread at all.
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1aug - earnings are now out, looks like small revenue miss..still good fundamentals.. as of right now only down 9, not quite the big whoosh down i was hoping for but still able to take a position. stock sold off a bit down to the 50day which seems to be holding now. as a minimum, any new credit put spreads would have to be at/below the 200day moving average, but im more comfortable with being at/below the support line at 390 which has held going back to march.
Sell to open the Aug385/390 credit put spreads at .40
Trademonster analysis tab shows this trade to have a 91% probability of max profit, not much premium but its the level im comfortable with.. the levels drive the strike selection not the premium amount.
click-->https://twitter.com/Mark_Lexus to follow on twitter
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31july - with earnings tomorrow morning, ill be watching for a selloff on some type of europe disappointment or slowing growth. id like to see some selloff to the 390-400 level which is near the 200day and the support line from june. if that happens ill be looking at new credit put spreads then..price them out if it happens.. have to be carefull with mastercard spreads since the bid/asks are wide. might have to look to SEP also. always use limit orders. if a selloff happens i will also watch Visa closely, might get an entry there also
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1aug - earnings are now out, looks like small revenue miss..still good fundamentals.. as of right now only down 9, not quite the big whoosh down i was hoping for but still able to take a position. stock sold off a bit down to the 50day which seems to be holding now. as a minimum, any new credit put spreads would have to be at/below the 200day moving average, but im more comfortable with being at/below the support line at 390 which has held going back to march.
Sell to open the Aug385/390 credit put spreads at .40
Trademonster analysis tab shows this trade to have a 91% probability of max profit, not much premium but its the level im comfortable with.. the levels drive the strike selection not the premium amount.
click-->https://twitter.com/Mark_Lexus to follow on twitter
------------------------------------------------------------------------------------------------------------------------------------
31july - with earnings tomorrow morning, ill be watching for a selloff on some type of europe disappointment or slowing growth. id like to see some selloff to the 390-400 level which is near the 200day and the support line from june. if that happens ill be looking at new credit put spreads then..price them out if it happens.. have to be carefull with mastercard spreads since the bid/asks are wide. might have to look to SEP also. always use limit orders. if a selloff happens i will also watch Visa closely, might get an entry there also
Monday, July 30, 2012
Closing the $aapl credit put spread entry
31 july - using the rule of that if a credit put spreads gains 40-50% in 1-3 days i take profits, with the objective of possiblly reinitiating the same spread on a pullback.. plenty of time left for Aug opex for a reentry.stock is up $15 since entry.
Buy to close the Aug560/565 credit put spread at .32
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30 july - aaple up nearly 30points since earnings.. stock has rebounded and everyone loves it again with news about possible iphone5 release in sep. , friday stock closed back above 50day and continued the move up today filling the gap from earnings.. with that i looked at new credit put spreads for Aug:
Sell to open the Aug560/565 credit put spreads at .65
the 570ish level lines up with some support from before earnings and was also the max level the bears could take the stock down on earnings, so my spread is right under that level... at time of entry Trademonster analyze tab showed the spread to have an 82%probability of max profit at opex.
click-->https://twitter.com/Mark_Lexus to follow on twitter
Buy to close the Aug560/565 credit put spread at .32
-------------------------------------------------------------------------------------------------------------------------
30 july - aaple up nearly 30points since earnings.. stock has rebounded and everyone loves it again with news about possible iphone5 release in sep. , friday stock closed back above 50day and continued the move up today filling the gap from earnings.. with that i looked at new credit put spreads for Aug:
Sell to open the Aug560/565 credit put spreads at .65
the 570ish level lines up with some support from before earnings and was also the max level the bears could take the stock down on earnings, so my spread is right under that level... at time of entry Trademonster analyze tab showed the spread to have an 82%probability of max profit at opex.
click-->https://twitter.com/Mark_Lexus to follow on twitter
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