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| Jan 6 2011 |
28.78 |
STO 25 Naked Puts Jan 28 @ .18 |
0.6 |
0.00 |
|
38.25 |
|
|
411.75 |
411.75 |
JAN 6 2011: I closed
my
position in MERCK and transferred the 70,000 to AT&T for the
next two weeks. The $28 strike has reasonable support for
this two week period. Today T paid it's dividend and the
stock pulled back hard pushing to the lower bollinger and
creating a great opportunity to sell the $28 strike for two
weeks of a little more than 1/2 a percent return. Add this
to the Merck trade and the return is better than 1% for a
couple of weeks work.
Looking at the 1 year chart AT&T has a lot of support at the
$26.00 strike and fair support at $28.00. 2010 looks like a
rather lackluster year for AT&T but it would have been a
good year for naked put sellers. A nice sideways stock could
have provided decent monthly returns.
Here is the 3 month chart and the support at $28.00 is more
obvious. Today's pullback pushed the stock to the lower
bollinger band and turned MACD to the downside. While this
could mark a downside trend, my strategy is to sell the $28
strike for 2 weeks, or less if the premium vanishes from the
$28 strike, or should the stock end up below $28.00 then I
will buy to close my naked puts and roll them out to Feb.
With good support at 27.50, I think $28.00 is a good choice
for two weeks exposure to AT&T.
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| Jan 21 11 |
28.33 |
Expiry 25 Naked Puts Jan 28 expired |
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| Jan 31 11 |
27.30 |
STO 20 Naked Puts Feb 27 @ .72 |
2.6% |
|
|
32.00 |
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1408.00 |
1819.75 |
|
Jan 31 2011: The stock has a nice sell
off yesterday and today it is now bouncing just below my
support point of $27.50. I have taken advantage of the move
lower and sold the Feb $27.00. I do not plan to hold this to
expiry unless necessary.
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| Feb 11 11 |
28.44 |
BTC 20 Naked Puts Feb 27 @ .09 |
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32.00 |
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(212.00) |
1607.75 |
| Feb 24 11 |
27.70 |
STO 20 Naked Puts Mar 27 @ .38 |
|
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|
32.00 |
|
|
728.00 |
2335.75 |
|
Feb 24 2011: The stock has moved back
towards my support level of $27.50 and is now touching the
lower bollinger. I could wait until tomorrow but with the
move lower today premiums moved up and I captured more than
1%. Again I do not plan to hold these puts until
expiry.
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| Mar 7 11 |
28.00 |
BTC 20 Mar 27 Naked Puts @ .08 |
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|
32.00 |
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(192.00) |
2143.75 |
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Trade on hold as I believe the stock
is overvalued. I will wait for the stock to pull back to the
$28.00 range again. |
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| Aug 31 11 |
28.20 |
Sold 10 Naked Puts Sep 27 @ .34 |
1.1 |
|
|
19.50 |
|
27019.50 |
320.50 |
2464.25 |
|
Aug 31 2011 & Sep 1 2011 : The news by the US Justice
Department's move to block AT&T's planned acusition of
T-Mobile USA operations has hammered the stock and provided
an excellent put selling opportunity.
In this article I discuss the decision to sell two sets
of puts and why it is never worth chasing stocks that become
over valued.
Read the article.
|
| Sep 1 11 |
28.30 |
Sold 10 Naked Puts Oct 26 @ .50 |
1.8 |
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19.50 |
|
26019.50 |
480.50 |
2944.75 |
| Sep 16 11 |
28.94 |
Expiry: 10 Naked Puts Sep $27 expired |
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| Sep 19 11 |
28.37 |
Sold 10 Naked Puts Oct 26 @ .30 |
1.1 |
|
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19.50 |
|
26019.50 |
280.50 |
3225.25 |
| Oct 21 11 |
29.13 |
Options Expiry: 20 Oct $26 put options
expired |
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| Nov 9 11 |
28.93 |
Sold 10 Naked Puts 17DEC11 $26 @ .18 |
0.69 |
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19.50 |
|
26019.50 |
160.50 |
3385.75 |
| Dec 16 11 |
28.85 |
Expiry 10 Naked Puts 17DEC11 expired |
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| Dec 16 11 |
28.85 |
Sold 10 Naked Puts 21 Jan 12 $27 @ .24 |
0.90 |
|
|
19.50 |
|
27019.50 |
220.50 |
3606.25 |
