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Posts Tagged With 'new trade'

Posted by Martin February 13, 2013

New Trade – MBIA Inc (MBI) put selling

New Trade - MBIA Inc (MBI) put selling

Today I execute the trade on MBIA Inc (MBI) which i wrote about yesterday. I sold 1 put contract against this stock.

What is the game plan?

I will be selling puts against this stock, but trying to avoid assignemnt. If it however happens and I get assigned or won’t be able to roll the put out and away I will start selling covered calls as long as I get assigned again and get rid of the stock.

Today I sold one put contract against MBI and collected $118 premium.

02/13/2013 09:30:09 Sold 1 MBI Aug 17 2013 9.0 Put @ 1.18

If I get assigned I will buy MBI for $9.00 and my cost basis will be at $7.82 (less the premium). If I gett assigned, I will start selling covered calls as I did previously with this stock.

If the stock stays above the strike price, the put expires worthless and I’ll keep the premium and repeat the process. Also if the stock manages to run up and the put becomes worthless prior to its expiration I may consider buying the put back and selling new further in time. I’ll keep posting the progress of this trade.

Posted by Martin January 24, 2013

New trade – Ferrellgas Partners LP (FGP) put selling

FGP is one of the stocks I wish to buy and own. It is an MLP paying nice dividend and the stock is optionable. It pays 10.50% dividend as of this writing. However, the company has never increased its dividend since it started paying it in 1994. Thus I am willing to hold this stock for short period and use it for put selling and covered calls only. This stock will not be a part of my core portfolio.

So what is the game plan?

I will be selling puts against this stock as long as I get assigned. As soon as I get assigned I start selling covered calls as long as I get assigned. In the meantime I will be also collecting dividends.

I will also use this trade to learn better how to trade puts. I know this in general, but want to get better in it.

Today I sold one put contract against FGP and collected $185 premium.

01/24/2013 10:06:54 Sold 1 FGP Aug 17 2013 17.5 Put @ 1.85

If I get assigned I will have FGP for $17.5 and my cost basis will be at $15.65 (less the premium). If the stock stays above the strike price, the put expires worthless and I’ll keep the premium and repeat the process. Also if the stock manages to run up and the put becomes worthless prior to its expiration I may consider buying the put back and selling new further in time. I’ll keep posting the progress of this trade.

Posted by Martin November 01, 2012

New trade – Realty Income (O)

Today I bought more shares of Realty Income to my dividend portfolio at $39.72 per share.

11/01/2012 12:26:49 Bought 19 O @ 39.72

Total shares held as of today: 66
Estimated annual dividend: $120.12
Consecutive Dividend Increase: 14 years
Dividend yield today: 4.50%
Dividend 5yr Growth: 2.66%
Dividend paid since: 1994

Posted by Martin January 09, 2012

New trade – FCX

Freeport McMoRan (FCX)

Bear Call spread

BTO 1 FCX Feb18 2012 42.00 Call
STO 1 FCX Feb18 2012 39.00 Call

Price: limit credit $1.20

Max risk: $180
Max gain: $120 if price stays below $39 at expiration

Update:
01/10/2012 – filled @ $1.2 ($120 credit)

Posted by Martin January 04, 2012

New trade – GLD butterfly

When looking at GLD recently, we can see that it broke below its 200 day MA as well as it broke thru its long term trend. It seems GLD is poised to go lower. Today the market showed a bit weak trading (compared to yesterday’s big move), so I believe, GLD can get lower during this month. Right now it is attacking 200 day MA from which it may go back down to $150 or even lower.

I will play this downtrend by placing a butterfly on GLD:

SPDR Gold Trust

Put Butterfly

BTO 1 GLD Jan21 2012 154 Put
STO 2 GLD Jan21 2012 150 Put
BTO 1 GLD Jan21 2012 146 Put

Price: limit debit $0.58

Max risk: $58
Max gain: $350 at expiration if the stock lands at $150 per share.

Update:
01/05/2012 – order filled @ 0.58

Posted by Martin January 03, 2012

New trade – ATI; Trade adjustment – SLB

I am going to open a new contingent order:

Allegheny Technologies

Long Puts

Contingency:
If the stock’s last price is greater or equal than 54.20 then:

BTO 1 ATI Apr21 2012 55 Put

Price: at market (expected price per contract would be $6.2)

Max risk: $620
Max gain: Unlimited (potential target: $11.70 or $1170 per contract)

Update:
01/06/2012 – trade canceled, it didn’t meet the entry price

I am also going to adjust the following position by rolling up the upper body of the butterfly:

Schlumberger

Put Butterfly

Unfortunately my broker doesn’t allow me to roll over with one order, so I have to close the upper body first and then open higher part later:

1st step:
BTC 2 SLB Jan21 2012 60 Put
STC 1 SLB Jan21 2012 65 Put

Price: limit credit $0.25

When filled, 2nd step will follow:

BTO 1 SLB Jan21 2012 70 Put
STC 2 SLB Jan21 2012 65 Put

Price: limit debit $0.93

This trade will be taken on both my accounts: TD trading account and ROTH IRA account.

Update:
01/04/2012 – I talked to my broker and they do not allow me to open an uneven butterfly, so I would need to treat it as spreads. For that I do not have enough money on my account and thus I cannot finish this conversion. Thus I am considering this trade as closed with a loss.
I sold the upper body for credit $0.23, with the original cost of $0.78 this trade is a loss 70%