Monday, June 20, 2011


As of last week's option "exasperation", having sensed at least a temporary shelf in the market using sentiment indicators (but still employing a safety net), several puts were sold with the intent to take on desirable DITM stocks shortly after the puts either expire worthless (giving me 100% ROI, 10% ROA), or having the stock put to me at a lower price. For example, if I like a stock that goes ex-Dividend in 2 or 3 months, I sell a lower put to expire just before that date and add it to profits.

So far my DITM portfolio has not had a losing trade in over a year -since BP, and TLT declines. However, 2 or 3 of my 18 are slightly under water, collecting option premium and >3% dividends.

June Puts include: ERF put to me at 31, sold the 29
XLU major screwup - put to me Friday, expiry -the same day as ex (as without) div'd. I hope to trade out of it.
KKR Call expired at zero - will take dividends until it rises again, selling a Call.

July Puts include:

August puts include DIA, so far. Other candidates, if I get some more money to invest: DEO,BMY. Caveat Emptor!

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