WHAT WE DO? WE SELL OPTIONS FOR INCOME. WE USE THAT INCOME TO BUY DIVIDEND GROWTH STOCKS!
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Posted by Martin April 10, 2013

Trade Adjustment – Corning Inc (GLW) put selling addition

Trade Adjustment - Corning Inc (GLW) put selling addition

Corning Inc seems to be performing well. The outlook Morningstar presents hasn’t changed and they still estimate the value at $15 a share. My own calculation indicates 17 a share with 28% safety margin and annual expected return at 25%. The PEG value of 0.9708 is below the Electronic Equipment, Instruments & Components industry median Continue reading →

Posted by Martin March 20, 2013

New Trade – Micron Technology Inc (MU) covered call

New Trade - Micron Technology Inc (MU) covered call

The Micron Technology Inc covered call order executed this morning. This is another trade utilizing a total return strategy. That means that I want the stock to be called away at expiration or even better be assigned prematurely. If assigned, either early or at expiration, I will realize a nice gain. If not assigned, i Continue reading →

Trade adjustment – Kodiak Oil & Gas Corp (KOG) new covered call

Trade adjustment - Kodiak Oil & Gas Corp (KOG) new covered call

The previous February covered call for Kodiak Oil & Gas Corp expired worthless leaving me with maximum profit of $52 per contract (5.47%; 3% annualized profit). Since the option expired worthless I am allowed to sell another contract against the same stock. I did sell another covered call this morning and collected another $60 per Continue reading →

Posted by Martin March 15, 2013

Expiration Friday – (KOG) and (TASR)

Expiration Friday - (KOG) and (TASR)

Today is expiration Friday and I have two covered calls expiring tomorrow leaving me with maximum profit. The call options expire and on Monday I can sell another set of covered calls as long as the stock will be called away. The stocks with expiring call options are Kodiak Oil & Gas Corp and TASER Continue reading →

Posted by Martin March 13, 2013

New Trade – Pitney Bowes Inc. (PBI) put selling

New Trade - Pitney Bowes Inc. (PBI) put selling

When I sold ARR today morning I quickly scanned my watch list for replacement. I must admit that this time I was looking for high yielding stocks, closer to 10% yield with a decent dividend growth and dividend paying history. I think Pitney Bowes Inc. perfectly fits my needs. It is a long-term dividend payer.

Posted by Martin March 08, 2013

New Trade – Safeway Inc. (SWY) put selling

New Trade - Safeway Inc. (SWY) put selling

I was searching for stocks which I can buy, but couldn’t find anything at a decent price. Everything I was interested in is so elevated that I wasn’t comfortable buying at the current price. So I was thinking that the only way I would be willing to do is to sell a longer term put Continue reading →

Posted by Martin February 27, 2013

Trade Adjustment – Taser Inc. (TASR) covered call

Trade Adjustment - Taser Inc. (TASR) covered call

Today, after some thinking I decided to sell a covered call against the additional 100 shares I bought earlier. See the adjustment here.     Here are the trade details: Bought 100 shares TASR: $6.90 Strike: $7.50 Sold 1 Covered Call: $0.45 Total Purchase: $645.00 Commissions: $8.78 Total purchase: $643.78     Expected Option Assignment: Continue reading →

Posted by Martin February 26, 2013

New Trade – Corning Inc (GLW) put selling

New Trade - Corning Inc (GLW) put selling

I had Corning in my watch list for some time. It was a featured company in Morningstar as a potential new gainer. I like the company what i have read about it so far. It is a four star stock and Morningstar estimates the fair value at $15 a share. My own calculation indicates 17 Continue reading →

Posted by Martin February 21, 2013

Trade adjustment – TASER International Inc (TASR)

Trade adjustment - TASER International Inc (TASR)

I hold TASR as my option play, but today’s frenzy selling compared to results of this company (50% better revenue which beat analyst expectations)makes TASR a good buy play. So I added another 100 shares to my current holding. As the stock recovers I will be selling more calls against the original and new holding. Continue reading →

Posted by Martin February 20, 2013

New Trade – 8×8 Inc. (EGHT) covered call

New Trade - 8x8 Inc. (EGHT) covered call

My MBI covered call trade was cleared this Saturday with a nice gain. This released some cash and I am looking for another opportunity to make some cash. I found 8×8 Inc. (EGHT) stock which seems to be a good candidate to deliver a profit. The stock recently corrected and is considered undervalued based on Continue reading →