Friday, May 3, 2013

Advancing LEAPS

One of the "trade-offs" I mentioned in my last blog update was the surprise call-aways that more than balance out the rare tanking torpedoes. As I prepare for my usual Tahoe vaca, I just got my INTC called away with a JULY call - only $3 ITM. Bottom line is an annualized (after 6 months) return of 12.94%. Better than MMFs and probably just as safe. It'll fund my activity at the tables at Stateline.

I also did a LEAP trade this week. Could net 80% total; involves buying AMD Advanced Micro, a D rated stock by Schwab, but up 40% this week - should be around by Jan. '15.  51% annualized over less than 7 Qs until 2015.
Bot the stock at $3.47, sold the 3 1/2 call and 2 1/2 put  for $1.78.
Also bot another thou and just sold the $4 call of 2015 ( no  put, as I don't want the risk of taking on another 1000 shares.
So far my no-monitoring LEAP plan includes: BAC, F, ACI, SWC, IAG, AA, AMD, NOK - Not great stocks (not a recommendation for the faint of heart), but they should still be around by 2015. If below, strike, I take on shares via Put, and write another set of LEAPS!!!

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