[Teddi Knight]

Teddi

Invested dollar amount is 150000.

Thanks

[Teddi Knight]

Aug 31 2015: Sold 5 naked puts at $39 put strike for Sept 18 expiry for .38 cents. I do not plan to sell more at this time.

STO NUE STRIKE $39 – 9.18 @ .50

Amy

[Teddi Knight]

This stock stood up well in the collapse although it did set a new 52 week low on Tuesday Aug 25. I plan to sell the Sept 18 $67.50 put strike for .60 to 65 cents. I think the likelihood of a rate hike this September is slim and I won’t be surprised to see no rate hike this fall. That means utility stocks should be okay.

Agree with Teddi. STO DUK SEPT. 18 STRIKE $67.50 @ .80

Amy

[Teddi Knight]

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[Teddi Knight]

Rolled my BMY out to Dec., strike $55, added a few. Got $2.50

Amy

[Teddi Knight]

Nothing wrong with a profit:)

Amy

[Teddi Knight]

Entered SDOW at 22.25 last week. Closed at 23.96 this morning. I am still learning this trade so I may have whimped out early. Will watch for an opportunity to re-enter on the next DOW rally.

[Teddi Knight]

STO FB SEPT. 11 Strike $80 @ .80

Amy

[Teddi Knight]

I will look at the VIX. I am mainly a weekly or bi weekly trader so VXX has worked well for me,although studying your VIX trade buying at $12 or so you made a killing

[Teddi Knight]

Last Friday, I placed an STO order with the TOL Sep-18-2015 34 Put at the ask price, but the market didn’t pull back enough for a fill.

[Teddi Knight]

VIX trades monthly, anyone have any info or insight comments on VXX. I got lucky and got assigned a bunch of shares at $17. The calls are super rich I can go way OTM and get a 1%+ weekly premium. I don’t want to get called so I roll if I see a dnager of this. tia

[Teddi Knight]

I actually did that a few times, and it does make a difference.

Amy

[Teddi Knight]

They are all 7 except FB which is 10, and DIS which is 6.

Amy

[Teddi Knight]

ok, thanks for the clarity….I guess there was so much SDOW and UDOW discussion I wasn’t sure.

Amy

[Teddi Knight]

On Aug 19 I STO BMY naked puts Sept 4 expiry at $62.00 strike for .69 cents. I believe you received .70. You believe BMY will return to $62 by then?

Same question for JNJ. On August 11, there was a position taken in JNJ for 9/18, strike $97.5. Would you not consider rolling that yet?

On August 4, after reading the following, I entered a similar trade. My next trade will be to sell puts at the $85 put strike for August 28 expiry. I am expecting Facebook Stock to fall to around the $91.50 level which I think will push the $85 put strike to 50 cents this week. That is when I will sell 15 naked puts at the $85 put strike.”

That one expires Friday, and I received .58. No roll, or close early if there is a bounce tomorrow?

Aug 6 2015: You suggested a trade to STO DIS $100 put strike for Sept 4 expiry for $1.00. It was suggested that a close for a 50% profit would be good, but I have not yet had that chance since DIS has just gone in one direction. I did received the $1.00 for selling the put.

If you are not concerned about these, or any others I missed, then I will feel better, and can manage the trades myself, but when you mention you saw selling into the close, I am concerned that all may not be well in the near future.

Amy

[Teddi Knight]

Today, TOL appears to be suffering less from the market correction relative to its 200 day moving average than the index funds SPY, QQQ, and IWM. The next support levels for TOL appear around $34 and $32.50. Near term volatility and option premiums are still relatively elevated compared to three months ahead.

Near the low today, I noticed the difference between the bid/ask on the TOL 8/28 39.00 Put was $1.60 (about 40% of the put value) with no trade volume for today. Rolling potentially has this additional burden. Now after some recovery, this difference is $1.05.

If you think a recovery in the stock is likely then an alternative is to accept the stock at $39 and upon the recovery, sell covered calls for a premium that will reduce your cost basis. Optionally, part of the call premium can also be used to purchase an OTM protective put in a combination spread to limit losses in case of a sharp decline.

Anyone have more thoughts on handling deep ITM puts with such bid/ask spreads? What would you do if you expected a further decline before a recovery?

[Teddi Knight]

Trade: I guess to answer your question, yes, now seems to be a great time to enter, since most of us are in even higher. Poor earnings are built in now (hopefully)

Amy

[Teddi Knight]

haha, yea most likely, but it’s a good, stable company that will, at some point, recover. I was assigned JNJ last week at $97, and sold it yesterday at $95.50; a loss, but didn’t want to be selling calls forever. I have another set at $97 for 9/18.

Rolled my PG to $75. We’ll see what the end of the month brings.

Good luck!

Amy

[Teddi Knight]

I took assignment of PG in April at 85. Have sold CC’s and worked my basis down to 81.4. Looks like I will own it for a long time.

[Teddi Knight]

https://www.fullyinformed.com/members/procter-and-gamble-stock-pg-update-for-aug-10-2015/

Here is Teddi’s most recent article. I think many are already under water. I have rolled once, will likely roll again.

Amy

[Teddi Knight]

Sorry, that was clearly 9/18!

[Teddi Knight]

If Teddi is reading this, I think it would be time saving to post here the repair strategies she does for individual members. I hate to bother her with emails, but I know she is peppered with them, so posting ONE answer might save her time.

JMO

Amy

[Teddi Knight]

I am also interested in a comment as what Teddi is doing with the current BMY position.

Tony

[Teddi Knight]

Teddi

If we are buying protection using just SDOW shares, then how do we determine to right amount of shares to purchase? I have seen you purchase 2500 shares but I am guessing that is based on a percentage of your portfolio. Is it not?

Thanks

[Teddi Knight]

Sold all my SDOW shares for 26(I cannot set in front of the monitor so I do limit orders on levels).

The giveback is amazing and crazy. What is more crazy is the type of stocks that are getting pummelled. Stocks like PFE, MRK, MSFT, WFC, JNJ, V and LOW are all taken to the woodshed, whereas stocks like AMZN and FB are treated better.

I am confused in figuring out what stock is safe and what is not. I guess there is none it is just a matter of whose day it is to the woodshed :)

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