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Posted by Martin March 07, 2017

STX dividend capture – triple play

We are opening a new triple play – dividend capture trade against STX (Seagate technology) stock. The stock has ex-dividend on March 20th so we must become owners of the stock before that day. This goes perfectly with the March 17th options expiration. We can sell naked (or cash secured) puts, collect premium, and let Continue reading →

Posted by Martin March 03, 2017

X trade adjustment

We have a three trades using US Steel (X) as underlying stock. The stock is not one I would normally buy as a long term investment, but it is a great stock to trade options against it. As of today, we have 3 March 10 inverted strangle contract, 1 March 10 strangle, and 1 March Continue reading →

Posted by Martin December 26, 2016

DIVIDEND CAPTURE – TRIPLE PLAY (ETE)

I am placing a new trade order for the next few weeks using a strategy called dividend capture – triple play with Energy Transfer Equity, L.P. (ETE) underlying. Normally, this strategy is a buy-write strategy where you buy 100 shares of the underlying stock a few days before the stock goes ex-dividend and sell a Continue reading →

Posted by Martin October 30, 2016

GME – fixing a deep in the money put trade

Recently, in our trading group on Facebook, a trader asked a question:   “Whats your suggestion to manage my GME Short 3 Jan20 31 put @5.65. GME Trading now @23.8”   I posted my answer to that question but then realized that my answer was just a part of the overall fix of this trade. Continue reading →

Posted by Martin July 29, 2016

$WYNN beat estimates yet gave me a headache

Today, I feel bitter about my WYNN trade. Last week I decided to take a few trades against WYNN and stretch my account a bit because I was confident that I would be out of those trades before earnings. It was a great opportunity trade! Brokers were listing that WYNN was going to report earnings Continue reading →

Posted by Martin June 11, 2016

Trade Alert – ROTH IRA cash secured put (LGCY)

I am going to open a cash covered put trade (CSP) in my ROTH IRA account on Monday using LGCY stock. The stock has been beaten up severely and I own it at $12.40 a share but it currently trades at $2.24 a share. It paid dividends, but about a year ago it suspended it. Continue reading →

Posted by Martin April 14, 2016

Handling a losing trade after assignment

It is interesting how things in the stock market can turn on a dime. Yesterday all my stock positions were great, and the sky was at the tip of my fingers, today, everything is the exact opposite. A few trades which i have opened yesterday and which were doing well are now in the money Continue reading →

Posted by Martin February 29, 2016

Put selling against dividend paying stocks strategy: sold (ESV) April puts

Taking on the damage control from trading SPX spreads. I tried hard to get into SPX trading but I wasn’t able to make any profit. I actually lost everything I ever made selling puts against dividend stocks. I am not saying that I will never trade SPX again. Never say never. I might go back Continue reading →

Posted by Martin February 18, 2016

Going back to selling puts against dividend paying stocks strategy: sold (PSEC) Aug put

Going back to selling puts against dividend paying stocks strategy: sold (PSEC) Aug put

Correction: I collected $89 dollars and not $75 premium as mistakenly shown in this post.     I must admit that I am getting frustrated trading spreads against SPX (S&P500). It is extremely hard trading that damn index. The market is volatile and whenever I sell calls, the market follows for a few days, then Continue reading →

Earnings Season Can Be Bountiful With Options Trading

Earnings season is in full swing, with a third of S&P stocks scheduled to report this week. If the S&P 500 is any indicator of how companies performed during the first half of the year, stock investing continues to be one of the best ways to line your financial coffers. That being said, there are Continue reading →