 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
Carry Forward from 2010 - $16105.50 |
|
Jan 3 11 |
70.00 |
STO 2 NP FEB $62.50 @ .65 |
1.0 |
|
|
9.50 |
|
|
120.50 |
16226.00 |
|
Jan 19 11 |
69.26 |
BTC 5 NP JAN $65 @ .04 |
(0.01) |
|
|
13.25 |
|
|
(33.25) |
16192.75 |
|
Jan 19 11 |
69.26 |
STO 5 NP FEB $65.00 @ .85 |
1.3 |
|
|
13.25 |
|
|
411.75 |
16604.50 |
|
JAN
19 2011: A steady decline culminating into lots
of selling today as the debit transaction fees are
back in the news again. The stock could test the
$66.50 range so I will stay at the $65.00 range and
start by selling just 5 naked puts at $65.00. I
closed my Jan 65 naked puts just to be safe. At 4 cents
it's not worth holding on as I want to take
advantage of today's 3% decline in the stock and
stay at that $65.00 level.
 |
|
Jan 20 11 |
67.80 |
STO 5 Naked Puts Feb 65 @ 1.20 |
1.8% |
|
|
13.25 |
|
|
586.75 |
17191.25 |
|
Feb 18 11 |
$75.83 |
Expiry - 5 Feb $62.50 / 10 Feb $65.00 naked puts
expired |
|
|
|
|
|
|
|
|
|
Feb 22 11 |
73.20 |
STO 5 Naked Puts Apr 70 @ 1.82 |
2.4% |
|
|
13.25 |
|
|
896.75 |
18088.00 |
|
Feb 22 11 |
73.20 |
STO 5 Naked Puts Apr 67.50 @ 1.19 |
1.7% |
|
|
13.25 |
|
|
581.75 |
18669.75 |
|
Feb
22 2011:
Back in December the stock broke it's uptrend with a
strong collapse that saw the stock plummet to a low
of $66.59. The stock then quickly climbed back up to
its support zone of around $68.50 to $69.00. There
would appear to be strong support in that range.
Looking back throughout the past 12 months, the
chart continues to show good support in that
valuation. Therefore the "sweet spot" for me as I
want to eventually own shares, is at the $70.00
level. This should put my puts in and out of the
stock at various times over the next few cycles.
This means very good premiums. Meanwhile to augment
that position I will continue to sell the $67.50
naked put as it is below support and I have a good
chance of it always expiring out of the money.
You
can see on the chart below that the latest run up
ended on Friday with Options Expiry. It is obvious
since the stock took a run to $77.08 and then sold
off to close down near the lows of the day. This
normally signals that more selling is coming into
the stock. The stock probably has a good chance to
test back to the $72.00 to even the $70.00 range. At
this level I would expect traders to load up on the
stock and then push it back up to $75.00 and then
they will probably start to sell again.
Today
I sold 5 naked puts for Apr $70 and 5 for Apr
$67.50. This leaves me with 5 contracts that I can
place should I see the stock take a larger tumble
then I would expect affording me the opportunity to
sell additional naked puts below $67.50. Meanwhile I
am still holding my March $70.00 naked puts which I
sold for $6.00. I will hold a little longer before
considering whether to buy them back early or not.
If I didn't want to own shares I would definitely be
buying them back with such a large profit already
made in the puts. At the same time if I did not want
the shares I would always be selling below the
$68.00 level on weakness like we saw today. I would
expect the weakness to continue for a few days, as
traders will want the stock to remain depressed as
they load up on it before pushing it higher.
 |
|
Mar 18 11 |
71.42 |
Expiry 5 Naked Puts Mar 70 expired |
|
|
|
|
|
|
|
18669.75 |
|
Apr 15 2011:
My April naked puts all expired. Time to look back
at the past year on Visa. $70 marks a lot of
support. If I sell the May $72.50 which is just
above support, for 1.10 this returns 1.5%. Since
that will bring in 1.5% I will wait until next week
to see if the stock falls a bit further and then sell
the 70 strike with my remaining 5 contracts..
 |
|
Apr 15 11 |
76.47 |
Expiry 5 Naked Puts Apr 70 expired
5 Naked Puts Apr 67.50
expired |
|
|
|
|
|
|
|
18669.75 |
|
Apr 15 11 |
76.25 |
STO 5 Naked Puts May $72.50 @ 1.10 |
1.48% |
|
|
13.25 |
|
36263.25 |
536.75 |
19206.50 |
|
May 20 11 |
78.23 |
May Options Expiry 5 Naked Puts May $72.50 expired |
|
|
|
|
|
|
|
|
|
MAY 23 2011: I have
been waiting for a chance to sell puts again on Visa
and today with the pullback I was able to sell 8
naked puts on Visa at the $72.50 strike for better
than 1% return. The $70 zone has a lot of support in
the stock. I feel quite comfortable selling the
stock at $72.50 and I was actually quite surprised
when this opportunity presented such good premiums.
|
|
May 23 11 |
76.77 |
STO 8 Naked Puts JUN $72.50 @ .79 |
1.06% |
|
|
17.00 |
|
58017.00 |
615.00 |
19821.50 |
|
JUNE 8 2011: VISA
STOCK was perfect today for selling a short term
put. I jumped on the opportunity and sold the
18JUN11 $72.50 Put for .82. Visa has been weak for
the past few sessions, along with most of the
market. However VISA is a special case as congress
continues to try to decide what to do about debit
fees. Today's trade is decent as the stock pulled
back to almost where it was on May 23. Selling
another 5 put contracts at the $70.00 strike is an
easy choice for 7 more trading sessions before
expiry.
 |
|
Jun 8 11 |
76.90 |
Sold 5 Naked Puts 18JUN11 $72.50 @ .82 |
1.1% |
|
|
13.25 |
|
36263.25 |
396.75 |
20218.25 |
|
Jun 17 11 |
74.43 |
Expiry: 13 Naked Puts Jun $72.50 expired |
|
|
|
|
|
|
|
|
|
JUNE 17 2011: Visa is
down 8% from its recent high. The technicals look
poor on VISA which leads me to think the stock could
easily fall lower. The market turmoil has created
higher put premiums, but I do not want to be
assigned at a high strike only to watch the stock
collapse, leaving me deep in the money. Here is the
strategy I use to determine what put strikes to sell
in an effort to minimize the chance of assignment
while at the same time earning enough put premium to
warrant risking my capital during a period of market
uncertainty. It is important to get the risk I am
willing to accept, balanced against the reward I
want to earn. To read how I came up with $65 as my
put strike to sell,
you can read about the strategy I use, here. |
|
Jun 17 11 |
74.40 |
Sold 5 Naked Puts Sep $65 @ 1.50 |
2.3% |
|
|
13.25 |
|
32513.25 |
736.75 |
20955.00 |
|
JUNE 24 2011: VISA
STOCK continued weak with more selling today. I have
been watching the weeklies on VISA and today I had
to jump in and sell some 1JUL11 $67.50. Even with
the weakness in the stock I feel pretty comfortable
at $67.50 for 1 week. I believe the stock while
under pressure has a lot of support at $65.00.
Therefore if assigned at $67.50 I will sell covered
calls until the stock recovers.
 |
|
Jun 24 11 |
74.00 |
Sold 5 Naked Puts 1JUL11 $67.50 @ .50 |
0.70% |
|
|
13.25 |
|
33,763.25 |
236.75 |
21191.75 |
|
Jun 24 11 |
73.90 |
Sold 5 Naked Puts 1JUL11 $67.50 @ .53 |
0.74% |
|
|
13.25 |
|
33,763.25 |
251.75 |
21443.50 |
|
Jun 24 11 |
73.77 |
Sold 5 Naked Puts 1JUL11 $67.50 @ .60 |
0.84% |
|
|
13.25 |
|
33,763.25 |
286.75 |
21730.25 |
|
Jul 1 11 |
87.97 |
Expiry: 15 Naked Puts Jul $67.50 expired |
|
|
|
|
|
|
|
|
|
Jul 8 11 |
88.50 |
Bought To Close 5 Naked Puts Sep 65 @ .20 |
(0.30) |
|
|
13.25 |
|
|
(113.25) |
21617.00 |
|
JUL 25 2011: VISA
STOCK roared up after the government pretty well
backtracked on its decision to change the debit fees
companies like VISA levy. The stock ran up to a
little over $90.00 in just the last few weeks. On
Wednesday of this week VISA will announce its
earnings. Everyone is expecting terrific earnings,
including myself. I sold the weeklies for today and
I also sold out into August. |
|
Jul 25 11 |
88.35 |
Sold 10 Puts 20AUG11 $82.50 @ .92 |
1.09 |
|
|
19.50 |
|
82519.50 |
900.50 |
22517.50 |
|
Jul 25 11 |
88.30 |
Sold 5 Puts 29JUL11 $85 @ .40 |
0.43 |
|
|
13.25 |
|
42513.25 |
186.75 |
22704.25 |
|
JUL 28 2011: VISA
announced excellent earnings yesterday. The stock
did not sell off as much as I had anticipated.
Therefore in keeping with my strategy of the
cautious bull, I closed the 29JUL11 puts 1 day
early. There is no reason to risk this capital
further when for pennies I can close this trade and
release the capital for further investments. |
|
Jul 28 11 |
87.22 |
Bought to close 5 PUTS 29JUL11 $85 @ .08 |
0.13 |
|
|
13.25 |
|
|
(53.25) |
22651.00 |
|
Jul 29 11 |
84.21 |
Sold 5 20AUG11 PUTS $77.50 at .80 |
1.00 |
|
|
13.25 |
|
38763.25 |
386.75 |
23037.75 |
|
Aug 9 11 |
78.80 |
Sold 10 Puts 17SEP11 $70.00 at .75 |
1.00 |
|
|
19.50 |
|
70019.50 |
730.50 |
23768.25 |
|
Aug 19 11 |
79.60 |
Expiry: 10 Puts 20AUG11 $82.50 assigned |
|
1000 |
|
20.00 |
82520.00 |
82520.00 |
|
|
|
Aug 19 11 |
79.60 |
Expiry: 5 Puts 20AUG11 $77.50 expired |
|
|
|
|
|
|
|
|
|
Aug 19 11 |
79.60 |
Sold 5 Puts 17SEP11 $67.50 @ .72 |
1.02 |
|
|
13.25 |
|
33763.25 |
346.75 |
24,115.00 |
|
AUG 19 2011: With options expiry today, I had to
decide whether or not to accept assignment on 1000
shares of VISA. I had decided back in July that I
would take the shares. The other options expired and
I took advantage to sell some more put options at
$67.50. |
|
Aug 25 11 |
84.11 |
Sold 5 Puts 17SEP11 $67.50 @ .45 |
0.62 |
|
|
13.25 |
|
33763.25 |
211.75 |
24,326.75 |
|
AUG 29 2011: It is obvious that it was the right
choice to accept shares in VISA stock rather than
buy back my August $82.50 puts and roll down. But
how do I decide when to accept shares in a stock
versus buying back the puts and rolling down?
This article on Visa Stock explains my strategy
and how I apply it.. |
|
Aug 29 11 |
87.50 |
Sold 1000 shares at $87.50 |
6.00 |
|
|
7.00 |
-87493.00 |
0.00 |
4973.00 |
29,299.75 |
|
Sep 16 11 |
90.50 |
Expiry: 10 Puts 17SEP11 $67.50 expired |
|
|
|
|
|
|
|
|
|
Sep 22 11 |
86.55 |
Sold 10 Naked Puts 22OCT11 $70 @ .72 |
1.0 |
|
|
19.50 |
|
70019.50 |
700.50 |
30,000.25 |
|
Oct 3 11 |
84.35 |
Sold 5 Naked Puts 22OCT11 $70 @ .63 |
0.86 |
|
|
13.25 |
|
35013.25 |
301.75 |
30,302.00 |
|
Oct 21 11 |
93.43 |
Expiry: 15 Naked Puts Oct $70 expired |
|
|
|
|
|
|
|
|
|
Oct 25 11 |
90.77 |
Sold 10 Naked Puts 28Oct11 $82.50 for .28 |
0.31 |
|
|
19.50 |
|
82519.50 |
260.50 |
30,562.50 |
|
Nov 21 11 |
89.25 |
Sold 5 Naked Puts 17DEC11 $75 @ .35 |
0.43 |
|
|
13.25 |
|
37513.25 |
161.75 |
30,724.25 |
|
Nov 21 11 |
89.35 |
Sold 5 Naked Puts 17DEC11 $75 @ .30 |
0.36 |
|
|
13.25 |
|
37513.25 |
136.75 |
30,861.00 |
|
Nov 25 11 |
89.00 |
Sold 10 Naked Puts 21JAN12 $85 @ 2.25 |
2.6 |
|
|
19.50 |
|
85019.50 |
2230.50 |
33,091.50 |
|
Dec 16 11 |
97.44 |
Expiry 10 Naked Puts 17DEC $75 expired |
|
|
|
|
|
|
|
|
|
Dec 16 11 |
96.80 |
STO 5 Naked Puts 21JAN12 87.50 @ .58 |
0.63 |
|
|
19.50 |
|
43,763.25 |
276.75 |
33,368.25 |
|
Dec 28 11 |
102.00 |
STO 10 Naked Puts 21JAN12 92.50 @ .55 |
0.57 |
|
|
19.50 |
|
92519.50 |
530.50 |
33,898.75 |
|
Dec 28 11 |
102.00 |
BTC 10 Naked Puts 21JAN11 $85 @ .14 |
(0.02) |
|
|
19.50 |
|
|
(159.50) |
33739.25 |
|
Dec 30 11 |
101.65 |
Sold 7 Naked Puts 18FEB12 $87.50 @ .95 |
0.75 |
|
|
15.75 |
|
61265.75 |
461.75 |
34201.00 |
