Nothing like a Fed discount rate cut to help the banks. Although it doesn’t do much for the consumer, the trickle through should help the markets in a sane world. Although there’s still a lot of nay sayers who don’t think this is enough to stop the blood letting, it’s nice to have a bump in the road to let some time pass on our short puts.
I bought a few options over the past week. My bullish AET calls fizzled, but I’m only loosing $133. I’m glad I didn’t go ITM on these as my losses would have been deeper. I bought back my ATI put for $2.40 on 8/9 and made a profit. It closed at $17.60 yesterday and is in the mid-$14s today. I saved at least $1200 Very happy about that. I bought back my FWLT put for $5.50 on 8/10 and lost $11. It went above $20 yesterday and is in the mid-15s today. I saved another $1000 and a Hell of a lot of worry. I love that.
My only other options expiring in both my taxable and non-taxable accounts today are on DJO, NYX (in both accounts) and BA. I’ll leave DJO alone and look for something new. I own NYX so I’ll re-write my covered calls, probably at 80 strikes, but I might wait for it to rise some more. I own BA in my IRA and will likely re-write my covered calls on it for October 100. I’ll check the charts next week to finalize my decision once I see the premiums for both. Then again, I could try to lock in more profits and sell closer to the money just in case we don’t get a real recovery for a while.
Technorati Tags: naked puts, investing, stocks, options, covered calls, options strategies, trade
So glad this option expiration closed alright for you.
I looked at Ameritrade online to see how much my dad would need to start trading, and it appeared to be 2,000, but we weren’t sure if that would allow options trades. We’ll see.
I have a new going forward plan. It’s my “slow it down to speed it up” plan replacing my “pile up as fast as possible” one. I checked stockcharts.com default P&F breakout chart on each of the 30 Dow stocks. 12 had price objectives, based upon that technical, of going up, 16 had lower objectives, and 2 were recently “met” and had no new indication. I will update this info monthly to track it, and use it for my long term stock picks, as well as aiding near term option choices. Also, I chose some categories with definite per centages as a “pie” for my funds. some will be cash, options, stocks, cd, bonds, etc. this may slow near term profit taking, but will prevent my ever having summers like the last 2 have been. For an honest question, as my holdings round into the new plan, and hopefully success follows, are you interested in knowing my portfolio setup and how it’s doing? Not sure if I’ve asked that before. Well, the last 1000 DOW points up and down have been fun, makes you wonder what’s next…..
Interesting info from stockcharts.com. Thanks for sharing. Yes, I’m interesting in what you’ve been trading and/or investing in. If you send me an email with the write-up I’ll post it for you. That goes for others too. I welcome others to provide input and share your successes and mistakes. We can all learn from each other and new stock ideas are always good to read about.