After getting the suggestion from a reader in comments section of my last post, I started looking at YHOO this morning. The stock has a forward P/E ratio greater than 28 and has a lot of change on the horizon. Part of that change is causing the misleading P/E ratio. Alibaba is scheduled to go…
Month: August 2014
Dropped SPY Hedge & Exchanged AAPL for DIS Puts
I’ve been thinking about closing my SPY October $160/180 vertical put spread for more than a week. SPY recovered nicely from its recent decline and I didn’t feel like it was giving me the protection I wanted. With the long puts being nearly 10% out-of-the-money, I don’t think I was protecting much. I don’t expect to…
Options Expiration – August 2014
Sideways moving markets can be great for option sellers and can be somewhat boring sometimes too. Option sellers have the advantage of making a profit (or a reduced loss) in a sideways (or slightly down) market if the premiums were traded at the right time and strike. I haven’t made a trade this month because…
End of the Month Summary – July 2014
July ran fairly flat for me until the 31st when the S&P 500 fell 2% and the Russell 2000 and the MidCap 400 fell even more. By the close of July’s trading my account finished lower for the month. As I’ve been expecting, a weaker month was due to hit. Thankfully, I’m not close to…